How to Access and Use M1 Finance Tax Forms for Your Tax Return

Filing taxes can be overwhelming, especially when dealing with investment accounts. If you use M1 Finance, understanding how to access and use your tax documents is essential for accurate reporting and avoiding issues with the IRS. These forms detail dividends, interest, and capital gains, all of which impact your tax return.

Knowing where to find these documents, verify their accuracy, and report them correctly ensures a smooth filing process.

Types of Statements

M1 Finance provides several tax forms covering different types of investment income and transactions. The most common include those for dividends, capital gains, and interest income.

1099-DIV

This form reports dividends and distributions from stocks and exchange-traded funds (ETFs). Ordinary dividends are taxed as regular income, while qualified dividends receive lower capital gains tax rates.

It may also include capital gain distributions from mutual funds or ETFs. If you received dividends from international investments and paid foreign taxes, those amounts will be listed and may qualify for a foreign tax credit. Reviewing these details helps ensure accurate tax reporting.

1099-B

This form reports proceeds from the sale of securities, detailing capital gains and losses. It includes acquisition and sale dates, cost basis, and proceeds. Short-term gains (held for one year or less) are taxed at ordinary income rates, while long-term gains (held for more than a year) receive lower tax rates.

M1 Finance designates transactions as covered or non-covered. Covered transactions have their cost basis reported to the IRS, while non-covered ones require manual determination. If a wash sale occurred—when a security is sold and repurchased within 30 days—the disallowed loss will be reflected, affecting gains and losses.

1099-INT

This form reports taxable interest income, which may come from cash balances in M1 Finance brokerage accounts or promotions. If you earned at least $10 in interest, you will receive this form.

It also indicates whether any interest is tax-exempt at the federal or state level. If backup withholding was applied due to incorrect tax identification information or IRS requirements, the withheld amount will be listed and can be claimed as a credit when filing.

Accessing Your Documents

M1 Finance provides tax documents electronically, typically by mid-February. You can access them by logging into your account via the web platform or mobile app and navigating to the documents section. These forms can be downloaded as PDFs for review or submission to tax software.

Brokerages issue tax documents only if income meets certain thresholds. For example, a 1099-DIV is generated if you receive at least $10 in dividends, while a 1099-B is issued if you sold securities. If no qualifying transactions occurred, no tax form will be provided, but reviewing your account activity ensures all taxable events are accounted for.

Some investors receive consolidated tax statements, which bundle multiple forms into one document for easier filing.

Verifying Data

Checking the accuracy of tax documents before filing helps prevent IRS notices or penalties. Compare reported income and transactions with personal records, such as monthly statements or trade confirmations. Discrepancies can arise from rounding differences, corporate actions like stock splits, or timing mismatches between trade execution and settlement. Since M1 Finance reports directly to the IRS, resolve any inconsistencies before submitting your return.

Cost basis calculations require careful review. While M1 Finance provides cost basis details for covered securities, transfers from other brokerages may require manual adjustments. If cost basis is missing or incorrect, it can inflate taxable gains or reduce deductible losses. Reinvested dividends should also be reviewed, as they increase the cost basis of holdings and help avoid double taxation when shares are sold.

Verify any tax withholding, especially if backup withholding was applied. Ensure reported amounts match tax forms, as they can be claimed as a credit when filing. Errors in withholding amounts could lead to an unexpected tax bill or refund delays.

Handling Amended Documents

Brokerages sometimes issue corrected tax forms due to late adjustments from issuers, corporate actions, or reporting errors. If M1 Finance provides an amended 1099, check whether the changes affect your reported income, deductions, or tax liability. Even small adjustments, such as reclassifying dividends or capital gains, can impact your taxable income.

If you have already filed your return and receive an amended document, you may need to submit Form 1040-X, the Amended U.S. Individual Income Tax Return. The IRS allows amendments up to three years from the original filing deadline or two years from the date taxes were paid, whichever is later. When filing an amendment, update only the affected sections and include supporting documentation.

Reporting on Your Return

Once you have accessed and verified your tax documents, the next step is reporting the information correctly. Each form corresponds to specific sections of IRS tax forms, and ensuring proper placement helps avoid discrepancies that could trigger IRS scrutiny.

For dividend income on a 1099-DIV, ordinary dividends go on Line 3b of Form 1040, while qualified dividends are reported on Line 3a. If you paid foreign taxes, you may need to file Form 1116 to claim a foreign tax credit.

Capital gains and losses from a 1099-B are reported on Schedule D and Form 8949, categorized by holding period. If M1 Finance provided cost basis information, ensure it matches what is reported.

Interest income from a 1099-INT is recorded on Line 2b of Form 1040. If backup withholding was applied, include it in the payments section to ensure proper credit.

If you have multiple brokerage accounts, consolidate all investment income and transactions across platforms to ensure complete reporting. Tax software can simplify this process by importing data directly from M1 Finance, reducing manual entry errors. If filing manually, double-check calculations and attach all required forms to prevent processing delays. Keep copies of tax documents and supporting records for at least three years in case of audits or IRS inquiries.