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Two 1099s for same Vanguard fund because individual funds consolidated into new brokerage account in mid-year

Until early 2023, Vanguard didn't require mutual fund holders to use their brokerage account format.  I own several Vanguard mutual funds and used to receive a single sheet 1099-DIV with each fund listed separately, one below the other.  During 2023, as required, I converted my fund holdings into their brokerage account format.  During all of 2023 I did not sell any shares of any of those funds.  I've received a familiar 1099-DIV enumerating tax reportable data for many but not all the individual funds for the time prior to the conversion and a consolidated 1099 (including the DIV section) for the remainder of 2023, commencing on the day of conversion.  I've never had a brokerage account before.  For the income data after the date of the conversion do I only have to add a single new investment as "Vanguard Brokerage Account" and report the consolidated data from the 1099-DIV section of the consolidated 1099-DIV in addition to reporting the individual fund income data as I did prior to this year? 

 

Also, some of the funds only produced income after the fund was consolidated into the brokerage account so there's no stand-along line item on the multi-line 1099-DIV I received for the time prior to the consolidation.  At the beginning of the TT interview, I'm asked if I received a 1099 DIV from each of the sources I reported last year.  Do I mark the circle for yes or no (given that I did receive income from that fund, but only after the conversion date so that income is included on the consolidated 1099 for the brokerage account)?

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2 Replies

Two 1099s for same Vanguard fund because individual funds consolidated into new brokerage account in mid-year

Yes.  Enter the 1099 before the transition as usual.  Entries for each single line.  Then just enter the totals from the consolidated 1099 sections.  1099INT, 1099DIV.  I didn't have any 1099B sales either.  

Don't worry about those questions at the beginning.  Say yes so they transfer in.  You will still use them for the old 1099.  You can delete the ones that didn't pay any dividends before the consolidation.  

Two 1099s for same Vanguard fund because individual funds consolidated into new brokerage account in mid-year

Thanks for confirming my impressions;  I just wanted a little hand-holding before proceeding.  It's a new scenario for me even though I've been using TT for more than a decade.  So frustrating to know that in my case, I have no income from any source that is not reported to them by the provider of the income and yet I have to prepare and file a return.  Many European countries have their tax office send an itemized draft of what they believe their citizen owes and the citizen either verifies that total or edits its prior to returning it.  Apparently those countries don't have a huge tax preparation industry (software, in-person tax prep companies, and CPAs) and lobbyists bribing their federal  legislatures to maintain and retain our crazy system.  Of course, I suspect their tax codes aren't filled with thousands of pages of exceptions and loopholes for their less intimidating, more simplified system of reporting and paying income taxes.  Thanks again for your reply.  Strange I didn't get an alerting e-mail to your post.  I had to log-in and search to find it.

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