Frequently Asked Questions (“FAQs”) About Your 2021 1099 Tax Statements

What’s New?

Please visit the IRS Website at https://www.irs.gov/forms-instructions to review Instructions and Form changes.

Will I receive more than one 1099?

It is possible you could receive a revised 1099. Changes to dividend tax classifications processed after your original tax form is issued for 2021 may require an amended tax form. However, there are other circumstances which may also cause you to receive a revised 1099. Alpaca will continue to receive, process and mail these corrections up to the IRS filing deadline of April 15, 2022. It is recommended that tax returns be filed after these mailing deadlines to ensure you have received all reported data.

What is an income reallocation?

Income from certain types of investments is subject to adjustments that could change the tax reporting on payments received in your account. For example, you may have received a $100.00 cash dividend on June 1, 2021. The company who declared the dividend may later decide to change the tax category (“reallocate”) of that dividend to 50% return of capital and 50% long term gain. Though these reallocations can occur throughout the year, the bulk of income reallocations are provided between late January and February following the year the original payment was made.

What does the Notes column in the 1099 Detail represent on my 1099 Tax Statement?

The definition of the notes can be found within the end-notes at the end of your tax statement.

Can I Import my 1099 and cost basis information into Turbo Tax?

Yes. Select “Alpaca Securities LLC Securities” from the list of Financial Institutions on the Turbo Tax site.

*You will need the Document ID that is listed on your Tax Statement to complete this process*

What does the Document ID represent on my 1099 Tax Statement?

The Document ID is a unique identifier that provides an additional layer of security when downloading your Alpaca Securities LLC tax statement data into Turbo Tax.

Why are you reporting Cost Basis Information on my 1099-B?

As a result of the Energy Improvement and Extension Act of 2008, we are required to report your “covered” security cost basis information to the IRS. If the securities are “noncovered” we will indicate this on the 1099-B and not report the enhanced Cost Basis information to the IRS.

What do I do if there is an error on my 1099?

Please email TaxReporting@alpaca.markets if you have an error on your 1099.

Alpaca Securities LLC is a registered broker-dealer and does not provide tax, legal or accounting advice. This material has been prepared for informational purposes only and is believed to be accurate and reliable as of the posting date but may be subject to change. It is not intended to provide, and should not be relied on for, tax, legal or accounting advice. Please consult your own independent advisor as to any investment, tax, or legal statements made herein.

Brokerage services are provided by Alpaca Securities LLC ("Alpaca"), member FINRA/SIPC, a wholly-owned subsidiary of AlpacaDB, Inc. Technology is offered by AlpacaDB, Inc.

Important Deadlines

Please click on the following link to review www.irs.gov/forms-instructions IRS Instructions and Forms.

Form Type

Description

IRS Postmark Due Date

1099 Composite excluding REMIC OID

This IRS form includes 1099-DIV, 1099-INT, 1099-OID, 1099-B and 1099-MISC. This form does not include Real Estate Mortgage Conduit (REMIC OID), Widely Held Mortgage Trust (WHMT) or Widely Held Fixed Income Trust (WHFIT) income. You may not receive all form types on your composite statement, for example if you just had dividend payments your composite statement will only produce the 1099-DIV

February 15, 2022 (unless Alpaca uses the granted extension deadline of March 15, 2022)

1099-R

Distributions from Traditional, Inherited IRAs, Roth IRAs or SEP and SIMPLE IRAs

January 31, 2022 (unless Alpaca uses the granted extension deadline of March 1, 2022)

1099-Q

Distributions from Coverdell Savings Accounts

January 31, 2022 (unless Alpaca uses the granted extension deadline of March 1, 2022)

1099-SA

Distributions from Health Savings Accounts

January 31, 2022 (unless Alpaca uses the granted extension deadline of March 1, 2022)

Required Minimum Distribution Letter (RMD)

Advises customers who will be 72 in 2022 (and older) of their 2022 RMD amount

January 31,2022 (no extension available)

1099 Composite Originals due to Holdbacks (now includes REMIC/WHMT/WHFIT information and corrections

Original Forms include REMIC Original Issue Discount (OID), WHMT and WHFIT securities. Corrected Composite 1099s (Forms 1099-DIV, 1099-INT, 1099-OID, 1099B, 1099-MISC)

March 15, 2022

1042-S

Foreign account income and withholding from US sources to nonresident aliens

(unless Alpaca uses the granted extension deadline of April 13, 2022)

5498-ESA

Coverdell Savings Account contributions

May, 2, 2022 (unless Alpaca uses the granted extension deadline of May 31, 2022)

5498

IRA, Inherited IRA, Roth, SEP and SIMPLE contributions

May, 31, 2022 (unless Alpaca uses the granted extension deadline of June 29, 2022)

5498-SA

Health Savings Account contributions

May, 31, 2022 (unless Alpaca uses the granted extension deadline of June 29, 2022)

Alpaca Securities LLC is a registered broker-dealer and does not provide tax, legal or accounting advice. This material has been prepared for informational purposes only and is believed to be accurate and reliable as of the posting date but may be subject to change. It is not intended to provide, and should not be relied on for, tax, legal or accounting advice. Please consult your own independent advisor as to any investment, tax, or legal statements made herein.

Brokerage services are provided by Alpaca Securities LLC ("Alpaca"), member FINRA/SIPC, a wholly-owned subsidiary of AlpacaDB, Inc. Technology is offered by AlpacaDB, Inc.