Folio Investing: How to Download Tax Documents

Folio provides all of the information that you or your tax preparer will need to file your tax return and/or estimate your investment income.

Note: Folio does NOT mail tax documents; it is your responsibility to download the documents when they become available. Make sure you also gather tax documents from all other financial institutions, employers, and other income sources.

Make sure that you download the information relating to the correct tax year!

Transaction history:

The IRS does not require this information but it may help you estimate your tax liability.

To help you estimate your taxes prior to year-end or prior to the issuance of 1099’s and other tax documents, list your transaction history.

  • From the “My accounts” screen select the “transaction history” from the appropriate account’s drop-down box.
  • Choose the appropriate date range and transaction type, then click “refresh” to show the list.

Realized gain/loss report:

You must download and report this information to the IRS if you sold securities in a taxable (non-IRA) account; Folio provides this information as a pre-filled IRS form 8949 or in .xls spreadsheet format (same information).

  • To pull up a realized gain/loss report, click the “downloads” icon from the account summary screen.
  • Then, choose the appropriate tax year and click “download” under the “printable list for tax return” section.
  • Make sure the amount in the “sale price” column (long-term and short-term) totals to the same amount shown on your 1099 (lower-left corner of the front page).

Note: realized gains and losses do not apply to IRA accounts; all withdrawals from traditional IRAs are taxed at your ordinary (marginal) tax rate (and are also subject to a 10% penalty if withdrawn prior to age 59 1/2).

1099’s and other official IRS tax documents:

You must download and report 1099 form if you have a taxable (non-IRA) account. You must download and report 1099-R form if you took a distribution from an IRA account.

  • Once available, you can download 1099’s and other tax documents from your file cabinet.
  • From the account summary screen, click the “Statements and Tax Records” icon.
  • Choose the appropriate tax year and download the desired documents.

IRS Estimated Quarterly Payments

It is very important to know that for taxable (ie, non-IRA) investment accounts, you are responsible to pay the tax owed on investment income “as it is earned.” This means that if you wait until April 15th of the following year to pay the tax on investment distributions made during the year, you may incur penalties and interest liability. To avoid this, you must ensure that your withholding from all sources plus your estimated quarterly IRS payments (if applicable) are sufficient to cover your estimated tax liability. If you have questions about this, ask FFP or your tax preparer and refer to this IRS explanation of quarterly estimated payments.