UNDERSTANDING THE NEW CONSOLIDATED FORM 1099...We want you to know about these changes now, so you can be better prepared for the upcoming tax-filing season. ... Tax-exempt interest

UNDERSTANDING THE NEWCONSOLIDATED FORM 1099

The Consolidated Form 1099 is ChangingHere’s what you need to know:

Why these changes will be beneficial to you:

The Consolidated Form 1099 will

include all the information we have on

file for your account(s) at the time we

prepare the forms. But you are ultimately

responsible for the accuracy of your

tax returns.

The following are examples

of what you can expect to see

on the new forms. »

Important

▪ The new and improved layout allows you to navigate

the form more quickly.

▪ The information is presented in an easier-to-read

format, to help with tax filing.

▪ Additional tax-related information has been included

to help simplify your tax preparation.

Tax Year 2012

You will notice that the Consolidated Form 1099 for 2012 year-end tax reporting will have a different look. We want you

to know about these changes now, so you can be better prepared for the upcoming tax-filing season.

2 | Understanding the New Consolidated Form 1099

Summary Pages Provide a Complete Picture of Your Account Activity

Reportable Summary Page

▪ A summary of your possible tax forms, including the

1099-DIV, 1099-B, 1099-INT, 1099-MISC, and 1099-OID,

is delivered all in one place.

▪ All form sections are displayed, even if there is no reportable

information, so you will see a complete overview of your

account(s).

Summary Pages

Reportable Summary Page

Sample form image for informational purposes only.

If you have any questions, please contact your Advisor or call TD Ameritrade Institutional at 800-431-3500. | 3

Supplemental Summary Page

▪ A snapshot of the additional information that TD Ameritrade does not report to the Internal Revenue Service (IRS)

is now provided for your reference.

▪ Highlights include:

▪ Interest payments ▪ Short sales

▪ Options transactions ▪ Other useful information

▪ For your convenience, the Supplemental Summary can be found on page two of the Consolidated Form 1099.

If there is no supplemental information associated with your account(s), this page will not be included.

Summary Pages (continued)

Supplemental Summary Page

Sample form image for informational purposes only. Although options transactions are displayed, per IRS regulations cost basis for options and fixed-income securities are not required to be reported until tax year 2014.


The 1099-DIV is Reorganized to Make Reconciling Your Account(s) Easier

▪ Payments of dividends and distributions will be shown by CUSIP

and sorted by pay date, rather than by income type.

▪ Tax-exempt interest dividends from mutual funds or regulated

investment companies (RICs) will now be reported on the 1099-DIV,

instead of the 1099-INT.

▪ State income tax withheld will now be reported, where applicable.

1099-DIV

1099-DIV


Payments will be grouped by pay date

to assist you when reconciling back to

original payments.

Payments by Pay Date

All applicable information will be displayed

under the CUSIP, with detailed allocations

based on the distribution date.

New Sorting by CUSIP

Transaction types, including qualified dividends, foreign tax

withheld, and others, are indicated for each security, to make

it easier for you to track back to your original statements.

Transaction Type


The 1099-B Gives a Stronger View of Your Account History at the Security Level

▪ Wash sale information will now be included

as a separate line item within the trade details

of the 1099-B.

▪ As of January 1, 2012, new purchases of

mutual funds, registered investment

companies (RICs), and equities that are part

of dividend reinvestment plans (DRIPs)

became covered securities. Cost basis

information will now be reportable to the IRS.

1099-B

1099-B

The appearance of the form has been updated

for easier viewing, while still being organized in

subsections that clearly define the holding term

and whether or not basis data has been reported

to the IRS.


There is an updated location for finding

wash sale information.

Wash Sale

The shading of this area indicates that TD Ameritrade

will not report this information to the IRS.

Columns Not Reported

Trades will be organized by CUSIP to group all

activity, instead of being segregated on a trade

date basis.

Updated Sorting

The total amount of the gain or loss for each

section will be bolded. Totals will not reflect wash

sale disallowances.

Realized Gain or Loss


The 1099-INT Has Been Updated to Aid in Your Tax Preparation

▪ For 2012, the IRS has split apart the reporting for tax-exempt

dividends and tax-exempt interest. Tax-exempt dividends will

now be shown on the 1099-DIV. Tax-exempt interest will remain

on the 1099-INT.

▪ State taxes withheld will now be reported, where applicable.

1099-INT

1099-INT


Each transaction type is shown

for each pay date.

Transaction TypeInterest payments will be grouped by pay date to

assist you when reconciling back to the original

payments as shown on your account statements.

Interest Payments


Supplemental Information from Mutual Funds and Unit Investment Trusts Is Now Included

▪ All or a portion of any income that is exempt from state

and local taxes will be provided, if it’s available at the time

the Consolidated Form 1099 is processed.

▪ The reporting will now show a breakout of the underlying

fund and where income was sourced.

▪ This information is provided to you for reference only.

It will not be reported to the IRS.

Mutual Funds and Unit Investment Trusts

Mutual Funds and Unit Investment Trusts


TD Ameritrade is not responsible for payment reallocations that result in the issue of a corrected Consolidated Form 1099, and will not be held liable for any fees incurred for the refiling of a tax form.

TD Ameritrade does not provide tax advice. We suggest that you seek the advice of a tax advisor with regard to your personal circumstances.

TD Ameritrade Institutional, Division of TD Ameritrade, Inc., member FINRA/SIPC/NFA. TD Ameritrade is a trademark jointly owned by TD Ameritrade IP Company, Inc. and The Toronto-Dominion Bank. © 2013 TD Ameritrade IP Company, Inc. All rights reserved. Used with permission.

TDAI 2582 BR 01/13

New End Notes Provide Information that May Help You when Filing

End Notes

End Note Indicator

Keep this brochure handy as a reference during tax-filing season.

▪ End notes may include details on a reclassification

from a mutual fund or Real Estate Investment Trust,

explanations of Widely Held Fixed Investment Trusts

(WHFITs as shown), or other scenarios.

▪ Corresponding details for end notes will appear

at the end of the Consolidated Form 1099, before the

IRS instructions.


An end note indicator will appear in the

“Transaction Type” column as a superscript.

End Note Indicator

Documents

UNDERSTANDING THE NEW CONSOLIDATED FORM 1099...We want you to know about these changes now, so you can be better prepared for the upcoming tax-filing season. ... Tax-exempt interest