Charles Schwab 1099 Composite Form

[artg]

I'm attempting to prepare for our tax year 2020 TT entries.  Through Tax Year 2019 the investment company where we had our mutual fund account would send us a 1099-Div for EACH mutual fund.  When I prepared our 2019 return I entered the 1099-Div information for EACH mutual. In 2020 we transferred (in-kind) our six mutual funds to Charles Schwab and opened a brokerage account.  According to the Charles Schwab Tax Center we'll receive a 1099 Composite which will contain a composite 1099-Div (according to the sample I downloaded.) Therefore, will I enter a "single" 1099-Div for all of my mutual funds (combined) or will the Schwab composite form breakdown each funds respective 1099-Div information?  In other words, does anyone have any experience with the Charles Schwab composite form where their brokerage account is made up of multiple mutual funds?

[NCperson]

just report it as it is reported to you by Schwab; there is no need to report each mutual fund separately if Schwab is reporting it in composite.  it's much more efficient for you to do it composite! 

[VolvoGirl]

And you should try importing your 1099 info directly from the broker.  It works very well and smooth.  The composite 1099 will actually have the 3 main kinds of 1099 on it, 1099Div, 1099Int and 1099B for sales.  It is one page with the 3 sections on it.  There might be backup detail sheets listing the individual transactions.  You do need to enter any sales separately.  

Also brokers usually have until Feb 15 to send out the 1099s.  And don't be in a hurry.  They also can send out Amended or Corrected 1099 forms later.  My friend always gets 1 or 2 corrected 1099 forms.

[artg]

NCperson:  Wow!  Thank you.  This 1099-Composite is (obviously) new to me and tax year 2020 will be my first experience extracting the information and inputting the same into Turbotax.  Clearly, it will be easier to enter the 1099-Div information once (for a single brokerage account) versus multiple funds.  Again, this will be a new experience in late January/early February 2021 so I wanted to lay my new challenge out to the Community.  Once again, the Turbotax community has come through with the wisdom and counsel I hoped for. 

[artg]

Thank you VolvoGirl.  Believe it or not I've always manually entered my 1099-Div forms so maybe this year I'll try importing the information.  I do not have any trades so I shouldn't see any 1099-B information.  

[VolvoGirl]

I'm like you.  I do not import either.  I haven't have any 1099B  sales yet.  Not looking forward for when I do.  My friend has lots of sales.  Glad I can import them now.  Just wait and see what the 1099 form you get looks like.   Just looked at my Vanguard 1099.  It is one page for 1099 Div with my 6 funds listed separately.   There is not a grand total at the bottom for each box.  So I do enter them one line/fund at a time.   It's not very hard or many to manually enter a few funds individually.  

[fanfare · Accepted solution]

When your mutual funds are at a brokerage,

you just report one line "Schwab dividends"  on Schedule B for all dividends from funds and stocks.

When your mutual funds are at a fund company, like Vanguard for example, you need to itemize the funds.

But, Vanguard now encourages you to convert your account to a brokerage account, and if you do that you would be able to report  "Vanguard dividends" on one line.

[artg]

fanfare:

Thank you and I'll use your answer to close this discussion.  I say that because our mutual funds were in a "mutual fund account" at USAA, now they're in a brokerage account at Schwab.  

Again, this is a new experience for me and I didn't want to post this question in late January/early February.

I appreciate your wisdom and counsel.

[Mike9241]

you may actually get two 1099's for the fund.  one from the fund for the period of the year you held them through the fund and then for the rest of the year they may be included on Scwab's 1099.  review all 1099's.  the IRS won't care if you report the same dividends pice but you will get a notice if you don't report them all. 

[artg]

Thank you Mike9241.  You're absolutely correct and I'm fully expecting a series of 1099-Div forms from USAA (Victory Capital) for the time period our accounts were still with Victory Capital.  I'm very comfortable with those type of 1099-Div forms and ready to enter those in TT.  As you can tell by my original question and the responses I've received today it's the concept of a "composite" 1099 that concerned me.  But that concern is past tense given the outstanding responses I've received from the TT community.  I'm looking forward to entering a single 1099-Div from Charles Schwab for tax year 2020 as well as future years.

[donjofinch1]

How can I import to turbo tax the composite Schwab data to div, int, etc.  I have already entered 1099 Rs.

[CarissaM]

You can follow the instructions here to import the 1099 into Turbo Tax. If you need further assistance, please click here to contact customer support. @donjofinch1