By - fidelityinvestments
Capital gains distributions from funds, because unlike dividends, the information is last minute and unpredictable, and also hard to find. The distribution could be nothing, could be $10K, or anywhere in between. This can mean a lot to people who are carefully managing their income to stay under various thresholds.
Agreed, it’s not confusing conceptually, but if it could be made easier to see what my expected total dividends and capital gains distributions for the year would be given current holdings and the earlier the better then that would be great.
This is the first year I've done investments outside of just my 401k. I have absolutely no idea what to expect. I've been day trading, swing trading, and long term investing in funds. I'm hoping some of the bumps and bruises (losses) from my learning phase offset some of my more recent gains.
The more you’re willing to spend on tax filing services the easier it will be. My first time was last year and I was the same as you. Turbotax for instance you can directly upload documents from robinhood(or other services, I was using rh at the time) and TurboTax will automatically do it for you. But that feature is like $100 extra and I’m cheap so I did freetaxusa. Still was fairly easy, iirc you just do the net gains and losses, not each individual trade, and you fill it directly from your investing sheet(1022 I don’t remember)
And yes losses will offset, and if your losses are great enough it even carries over
Fidelity gives you free TurboTax Premier if you have a certain level of assets with them. I've gotten it for several years. The thing is that you have to wait until Fidelity creates the download and that's usually in February or March after the tax year. I'd like to get an estimate before the year ends.
All I see is that you get up to $20 off federal products : https://www.fidelity.com/tax-information/turbotax-discount/overview
I’m sure I have enough assets to qualify but never heard of what you speak of
Same. I've done most in RH though before moving to Fidelity.
If I never sold do I have to pay taxes on my gains?
Hi u/Arteman2, thanks for reaching out to us on Reddit!
Generally, if you do not sell the investment there is no taxable event. Capital gain taxes are assessed when there is an increase in an asset's value, relative to its cost basis, and is considered to be realized when the asset is sold in a non-retirement account.
However, if you own a Mutual Fund or Exchange Traded Fund (ETF) in your non-retirement account and the fund pays dividends or a capital gains distribution to shareholders, then this may be a taxable event. Capital gains distributions are payments made by the Mutual Fund or ETF to shareholders which represents a portion of the proceeds from the fund's sale of stocks or other assets within its portfolio.
While retirement accounts (i.e. IRAs) are considered tax-deferred accounts. This means that trading activity along with any dividends, interest, and capital gains received within the retirement account will generally not create a taxable event.
[Learn more about capital gains and cost basis by clicking this link.](https://www.fidelity.com/tax-information/tax-topics/capital-gains-cost-basis)
Thank you for speedy and helpful reply
Your gains, generally speaking, come from increase in the price of the security, and dividends.
Taxes due to increase in price of security come only if you sell.
Taxes due to dividends or other distributions, come in the year of the distribution.
Many stocks have no dividends. Those that do, have varying amounts.
How many times stock brockers re evaluate and change every and send you another end of year tax form. I swear every month from JAN-April they redo everything.
Will Fidelity send out a report letting me know all what I have gained/loss? The only gain I earned was a few bucks from a dividend and don't know if I would have to go back to find that information.
Welcome to r/fidelityinvestments, u/pkenny72.
Fidelity issues most tax forms near the end of January each year. Dividends and capital gains for non-retirement accounts are reported on the consolidated 1099 form for that account. Please note, dividends and capital gains are not typically considered taxable in a retirement account. IRAs are taxed once a distribution is processed. You can view your tax forms by following the link provided below.
[View tax forms](https://oltx.fidelity.com/ftgw/fbc/oftop/portfolio#/statements/tax-forms)
If you have questions about your specific situation, we suggest speaking with a qualified tax advisor for more information.
Awesome! Thank you for the response.
Thanks for connecting with us on Reddit, u/readyg0!
While not official, the "Closed Positions" page provides a snapshot of closed (sold) positions throughout the year along with their taxable consequence (gain or loss). It is worth noting that investment income, if applicable, is not included on the Closed Positions page. This data is located on "Year-to-date Tax Activity" which can be accessed on Fidelity.com by following these steps (login required):
1. Select "Accounts & Trade," then "Tax Forms & Information"
2. Click "View your YTD tax activity"
3. Toggle the applicable account and year
This page captures realized gains and losses along with investment income, such as dividends, interest, etc.
Fidelity issues most tax forms near the end of January each year. Dividends and capital gains for non-retirement accounts are reported on the consolidated 1099 form for that account, including wash sales. Please note, dividends and capital gains are not typically considered taxable in a retirement account. IRAs are taxed once a distribution is processed.
Here are some additional wash sale resources:
[Understanding a wash sale](https://www.fidelity.com/learning-center/trading-investing/trading/wash-sales-video) (video, 1:40)
[Wash sale: Avoid this tax pitfall](https://www.fidelity.com/learning-center/personal-finance/wash-sales-rules-tax)
The Fidelity website has a page that will show you the expected year end distribution for the Fidelity Mutual funds. https://www.fidelity.com/mutual-funds/information/distributions#/?table=actuals
I see the end-of-year fund estimated Capital Gain distributions have been posted as of 9/30. Will these be updated before the actual distribution date as the data firms up?
Hello u/ruralcricket, happy to help!
The year-end capital gains distributions are estimates as of September 30. Year-end capital gains distributions are based on capital gains realized through October 31 (or November 30 for funds with a November fiscal year end). The actual distributions could vary from the estimates posted on September 30 based on activity and other tax adjustments that may need to be made. If there are any changes in capital gains distributions, they will be updated accordingly on our website.
Hello all, fidelity is holding my money hostage along with many others. Go read the reviews on BBB. They hung up the phone on me and closed my accounts but did not return my money. Best advice I can give is to take your money out while you can.
We are sorry to hear about your experience, and we would like to follow up with you regarding this issue. Can you send us a ModMail with your full name and contact information as it appears on your Fidelity accounts so that we can review the situation?