Access tax resources and strategies
Find the statements, guides and tools you need for tax filing season, as well as helpful tax planning strategies for any time of year.
Find your tax statements
Ivy Investments offers copies of tax reporting forms online. These forms (such as 1099-DIV, 1099-B and 1099-R) will be mailed to all shareholders with reportable activity, and exact copies are available online for viewing and printing.
To view these forms:
- Log in to your account via the Access Your Account option.
- Select the Tax Documents link under the Statements heading.
If you want to view your tax forms but have not set up online access to your account, you may do so by selecting the Create User ID option on the Access Your Account page. If you need assistance, please contact Client Services at 1-888-923-3355.
Paying federal income taxes is one of most people’s least favorite annual activities. As a result, many people tend to procrastinate by not planning for their taxes each year and by completing and filing the forms at the last possible minute. This calculator is designed to help you estimate your annual federal income tax liability.Go to Calculator
Use tax filing resources
In this section, you will find tax guides, expected mail dates for tax forms and other special tax requirements.
Tax Information Mailing Schedule
Below is a list of the tax information you may receive and the required mail dates. The tax forms will be mailed on or before the dates listed below; please allow at least five business days for the information to arrive.
|Required Mail Date||Form||Definition|
|February 15th||Form 1099-DIV||Reports taxable dividends and capital gains.|
|February 15th||Form 1099-INT||Important change for mutual fund clients: Beginning with the 2012 tax year, you'll no longer receive Form 1099-INT. Interest dividends (including specified private activity bond interest) from tax-exempt bond funds will be reported on Form 1099-DIV.|
|February 15th||Form 1099-B||Reports proceeds from the sale of shares by either redemption or exchange from a fund other than a money market or an IRA.|
|January 31st||Form 1099-R||Reports distributions from IRA's or Qualified Plans.|
|January 31st||Form 1099-Q||Reports distributions from qualified educations programs, including Coverdell Education Savings accounts and state tuition programs.|
|End of February||Form 1099-DIV &
|The Ivy Apollo Multi-Asset Income, Ivy LaSalle Global Real Estate, Ivy LaSalle Global Risk-Managed Real Estate and Ivy Real Estate Securities Funds will not mail tax form statements (1099-DIV and 1099-B) until the end of February. Ivy Global Real Estate, Ivy Global Risk-Managed Real Estate and Ivy Real Estate Securities Funds invest predominantly in real estate investment trusts (REITs), as defined under Internal Revenue Code Section 856. Although Ivy Global Real Estate, Ivy Global Risk-Managed Real Estate and Ivy Real Estate Securities Funds will identify the total amount of distributions received from the REITs during the tax year, the Funds cannot identify the tax character of these distributions until at least January 31st of the following year, when the form 1099 information is received from the REITs in which the Funds are invested.
Please note that, in order to address the special nature of these Funds, Ivy LaSalle Global Real Estate, Ivy LaSalle Global Risk-Managed Real Estate and Ivy Real Estate Securities Funds obtain an extension of the standard date from the Internal Revenue Service each year.
|March 15th||Form 1042S||Reports taxable dividends and income tax withheld on accounts owned by nonresident aliens.|
|April 30th||Form 5498-ESA||Reports contributions and rollovers to Coverdell Education Savings Accounts.|
|May 31st||Form 5498||Reports contributions and rollovers to IRA's, Roth IRA's, SEP accounts and SIMPLE accounts.|
If you have any questions or you do not receive the appropriate tax forms, please contact a client service representative at 1-888-923-3355 Monday through Friday from 7:30 a.m. to 7:00 p.m. CST.
State Income Tax Withholding
Waddell & Reed Services Company may withhold state income tax on certain distributions made from retirement accounts where Fiduciary Trust Company of New Hampshire serves as custodian.
The Plan Types that may be subject to state income tax are:
- IRAs (including Traditional, SEP, SARSEP & SIMPLE)
- Roth IRAs
- 403(b)(7) Tax Sheltered Custodial Accounts (TSAs)
- Profit Sharing and Money Purchase Plans (Keoghs)
Whether your retirement account(s) is/are subject to state withholding depends on, at the time of your distribution:
- Your tax residence is within a state that requires state income tax to be withheld;
- The distribution amount is in excess of the state's exclusion amount (if applicable).
The respective state withholding will be reported on IRS Tax Form 1099-R.
Please refer to the chart below for a current list of states for which Waddell & Reed Services Company applies the mandated state income tax on certain distributions.
|State||Withholding Amount||State Exclusions||Eligible Rollover Distributions*|
|Arkansas||3% of redemption amount||No withholding for gross distributions less than $200.00||5% of redemption amount|
|California||10% of federal income tax amount||Not Applicable||Not Applicable|
|Connecticut||6.99% of redemption amount
unless CT-W4P is received
|Roth Accounts||6.99% redemption amount
unless CT-W4P is received
|Delaware||5% of redemption amount unless W-4P is received||Not Applicable||Not Applicable|
|Iowa||5% of redemption amount||Not Applicable||5% of redemption amount|
|Kansas||5% of redemption amount||No withholding for gross distributions less than $200.00||5% of redemption amount|
|Maine||5% of redemption amount rounded to the nearest whole dollar||Not Applicable||5% of redemption amount|
|Massachusetts||5.10% of redemption amount unless M-4P is received||Not Applicable||5.10% of redemption amount unless M-4P is received|
|Mississippi||5% of redemption amount rounded to the nearest whole dollar||State withholding applicable on only Premature distributions||Not Applicable|
|Maryland||Not required||Voluntary withholding except ERD's||7.75% of redemption amount|
|Nebraska||5% of redemption amount||IRC 408 plans (IRA, R/O, Bene IRA, Roth, SEP, SIMPLE & SARSEP)||5% of redemption amount|
|North Carolina||4% of redemption amount rounded to the nearest whole dollar||No withholding for gross distributions less than $200.00||Not Applicable|
|Oklahoma||5% of redemption amount rounded to the nearest whole dollar||Not Applicable||5% of redemption amount|
|Oregon||8% of redemption amount||$10.00 Minimum||Not Applicable|
|Vermont||24% of federal income tax amount||No withholding for gross distributions less than $200.00||24% of federal income tax amount|
|Virginia||4% of redemption amount||IRC 408 plans (IRA, R/O, Bene IRA, Roth, SEP, SIMPLE & SARSEP)||4% of redemption amount|
*Eligible Rollover Distribution (ERD) refers to those distributions from Qualified Plans that are eligible to move between various fiduciary plan types (for example - 403(b), 401(k)) without tax consequences. These Qualified Plan types are referred to in Internal Revenue Code (IRC) 401(a) and include Profit Sharing, 401(k), Money Purchase Pension, Defined-Benefit, and ESOP. An ERD may also be from an IRC 403(b) (7) plan, which is for employees of non-profit institutions and public schools.
If an election is made to take an ERD from these plans in cash or "in kind" there is a mandatory 20% federal withholding. When this occurs, various states require withholding as indicated.
The tax information in this section of the website is for informational purposes only. It is not intended, and should not be construed, as a recommendation, or legal, tax, or investment advice. You should consult your tax advisor to answer questions about your specific situation or needs.
The Internal Revenue Service requires mutual fund companies to report cost basis information to both shareholders and the IRS on the sale or exchange of mutual fund shares acquired on or after January 1, 2012.
Cost Basis Basics
Generally, cost basis is the purchase price of a share, including commissions and expenses, if applicable. Activity including reinvested dividends, reinvested capital gains and wash sale adjustments may increase the basis while other activity such as return of capital may reduce the basis. Cost basis is used to determine the taxable gain or loss of an asset when it is sold. The capital gain or loss is the difference between the cost basis of the asset and the current market value of the asset when sold or disposed.
Covered Versus Non-covered Shares
Shares purchased before 1/1/2012
|Ivy Funds is not required to track and report cost basis on these shares. As a courtesy, cost basis information for non-covered shares when sold or exchanged will be provided (if the data is available) using the average cost method.|
Shares purchased after 1/1/2012
|As required by the new regulations, Ivy Funds will provide cost basis information using an elected method or the fund default of average cost.|
Cost Basis Calculation Methods and our Fund Default Method
The Ivy Funds have selected Average Cost as their default method for tracking and reporting cost basis. Therefore, if you do not choose a method, Average Cost will be applied as the cost basis method for your account(s).
Historically, our Funds have reported the cost basis of redeemed shares to you when available, and have done so using the Average Cost method. For shares acquired prior to January 1, 2012, we will continue to report this information to you, when available. However, we will not report this information to the IRS.
Please note cost basis reporting does not apply to annuities, life insurance, tax exempt entities, corporations (other than Subchapter S), money market fund accounts with a stable net asset value (NAV), retirement accounts such as IRAs and Roth IRAs or tax deferred education savings accounts.
Your Funds’ Default Cost Basis Method
- Average Cost - Uses the average cost of the shares as the basis for calculating your cost when the shares are sold. The Average Cost method redeems the oldest shares first, and the holding period will be based on the acquisition date of the shares sold.
Other Cost Basis Calculation Methods:
- Specific Lot Identification (SLID) - Specific shares to be sold in an account will be selected by the shareholder at the time shares are sold to determine cost basis.
Standing order accounting methods:
- First-In, First-Out (FIFO) - Assumes shares acquired first in the account are the first shares to be redeemed.
- Last-In, First-Out (LIFO) - Assumes shares acquired last in the account are the first shares to be redeemed.
- High Cost (HIFO) - Assumes shares acquired with the highest cost per share in the account are the first shares to be redeemed.
- Low Cost (LOFO) - Assumes shares acquired with the lowest cost per share in the account are the first shares to be redeemed.
- Loss/Gain Utilization (LGUT) - Depletes lots with losses before lots with gains, consistent with the objective of minimizing taxes. For lots with a loss, short-term loss lots will be redeemed ahead of long-term loss lots. For gains, long-term gain lots will be redeemed before lots with short-term gains since long-term capital gain rates are lower than short-term.
Consult with your tax advisor
Depending on your financial situation, the cost basis method you select may help you take advantage of the gains or losses of your investments. We recommend you consult with your tax advisor to determine which cost basis method is best for you.
For additional information, you may wish to contact the Internal Revenue Service at 1-800-TAX-1040 (829-1040) or visit IRS.gov.
Online Access for Cost Basis Elections
You may make your cost basis elections online by logging onto your account via the “Access Your Account” option. If you have not set up online access for your account, you may do so by selecting the “Create User ID” option on the “Access Your Account” page. Once logged onto your account, go to the “Maintenance Tab” and then select “Cost Basis Elections”. If you need assistance, please contact Client Services at 1-888-923-3355.
Frequently Asked Questions
Q. What is cost basis?
A. Cost basis refers to the portion of an account that represents your investment, or cost of shares, including adjustments. Investments include purchases, reinvested dividends and capital gains. This portion is not subject to tax upon sale. The shares may, at times, be subject to fees and other adjustments that could affect their cost basis, such as wash sales or a return of capital distribution by the fund.
Q. Why is cost basis reporting required?
A. The requirement is part of the Emergency Economic Stabilization Act of 2008. The Act was intended to improve compliance with tax laws. This legislation requires an expansion of the current reporting on IRS Form 1099-B.
Q. What types of investments are affected by the new cost basis reporting requirement?
A. The new regulations impact equity securities, mutual funds and debt securities. Mutual funds are subject to the new reporting rules for shares purchased on or after January 1, 2012. The regulations do not apply to annuities, life insurance, money market fund accounts with a stable NAV, retirement accounts or tax deferred education savings accounts.
Q. Can a Contact Service Representative help me determine the best cost basis method?
A. No. Our representatives can explain the requirements and the various election methods, but they cannot offer tax advice. We recommend you consult with your tax advisor for help with selecting your election method.
Q. Hasn’t Ivy Funds been providing cost basis information?
A. Yes. We have provided Average Cost information as a service to shareholders for many years. However, this information was not provided to the IRS, nor were you as shareholders required to use the information to determine their gains or losses on the sale of shares.
Q. What is the definition of covered and non-covered shares?
A. For cost basis purposes, shares will be classified as “covered” and “non-covered.”
- “Covered shares” are shares acquired on or after January 1, 2012.
- “Non-covered shares” include shares acquired prior to January 1, 2012, or shares purchased on or after the effective date when cost basis information is unavailable.
Q. My account was established prior to the effective date of these cost basis regulations. Will I receive cost basis information on all the shares in my account?
A. Yes. If you have received Average Cost information for sales of your mutual fund shares in the past; we will continue to report Average Cost information for non-covered shares to you. In addition, due to the IRS regulations, the cost basis information for covered shares will be provided to both you and the IRS. We will report non-covered shares and covered shares separately on the same Form 1099-B.
Q. I have both non-covered and covered shares. Which shares will be redeemed first?
A. The non-covered shares will be redeemed first, except when you provide instructions to redeem a specific share lot. Once all the non-covered shares are depleted, covered shares will be depleted using the elected cost basis method.
Q. What cost basis information can be provided by the Funds for non-covered shares?
A. Average Cost Basis is the only information available for non-covered shares.
Q. If the Average Cost method has been applied to my covered shares, and I decide another accounting method will be more beneficial for me, am I locked in to that method?
A. It will depend on the activity within your account.
- If you change from Average Cost and have not yet redeemed or sold shares from your account, all covered shares will retain their original purchase price for cost basis purposes.
- If you are changing from the Average Cost method and a redemption or sale of covered shares has already been processed on the account, the remaining covered shares in your account were assigned the average cost basis at the point that sale occurred. Any shares purchased after a change to your cost basis method will be tracked and reported using the new method.
Q. How do I change my cost basis method from Average Cost in the future?
A. The final regulations specify a change from Average Cost must be provided in writing. You may contact one of our Contact Service Representatives for instructions on how to fulfill this requirement at 1-888-923-3355.
Q. Why is a secondary method required if I elect the Specific Share Identification method?
A. The secondary method will be used for systematic withdrawals (FWS) and check writing as an alternate to providing specific lot depletion instructions. If you do not elect a secondary method, the Loss Gain Utilization method will be assigned as the secondary method for your account.
Report of Organizational Actions Affecting Cost Basis
- Ivy Dividend Opportunities
- Waddell & Reed Advisors Accumulative
- Waddell & Reed Advisors Continental Income
- Waddell & Reed Advisors Global Growth
- Waddell & Reed Advisors High Income
- Waddell & Reed Advisors Municipal High Income
- Waddell & Reed Advisors New Concepts
- Waddell & Reed Advisors Science and Technology
- Waddell & Reed Advisors Small Cap
- Waddell & Reed Advisors Vanguard
- Waddell & Reed Advisors Wilshire Global Allocation
- Waddell & Reed Advisors Core Investment
- Waddell & Reed Advisors Dividend Opportunities
- Waddell & Reed Advisors Energy
- Waddell & Reed Advisors Global Bond
- Waddell & Reed Advisors Municipal Bond
- Waddell & Reed Advisors Tax Managed Equity
- Waddell & Reed Advisors Value
In December 2017, the Tax Cuts & Jobs Act was passed into law and resulted in broad tax reform across multiple disciplines. One change was an increase in the unified credit (UC).Read More
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The tax information in this section of the website is for informational purposes only. It is not intended, and should not be construed, as recommendation, or legal, tax or investment advice. You should consult your tax advisor to answer questions about your specific situation or needs.
This is for informative purposes only. Waddell & Reed financial advisors do not offer tax advice. You may want to consult with your accountant or tax advisor to discuss your personal situation.