- Dividends & Capital Gains
- Cost Basis Information
- Tax Forms
- Direct Deposit Your IRS Refund
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Dividends & Capital Gains
Dividends and Capital Gain Reports
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Cost Basis Information
When you sell or transfer shares of a mutual fund from a taxable account, you may have a gain or loss. To determine the gain or loss, you need to know how much you paid for the shares. This is your cost basis — an amount that includes the following:
- Your initial purchase
- Additional shares you bought over time
- Any reinvested dividends and capital gains
- Return of capital and other adjustments
For shares purchased prior to January 1, 2012, the cost basis calculation is the responsibility of the shareholder. Hartford Funds provides estimated cost basis information on Form 1099-B if all information required for the calculation is available within our online records. Please see your tax advisor for questions regarding your cost basis.
Effective January 1, 2012, the IRS requires Hartford Funds to track and report cost basis information and whether gain (or loss) on a sale is short-term or long-term* on IRS Form 1099-B to shareholders and the IRS. Mandatory cost basis, which is a requirement of the Energy Improvement and Extension Act of 2008, is designed to facilitate accurate reporting of gain/loss amounts on the sales of shares of stock. It generally applies to mutual fund shares purchased on or after the January 1, 2012 effective date.
Note: Cost basis information is reported for non-qualified 1099-B reportable accounts only.
How is cost basis calculated?
There are several ways cost basis can be calculated. Your tax advisor can help you determine the method that makes the most sense for you. The Hartford, its affiliates, employees and agents cannot and do not provide any financial, tax, legal or accounting advice.
|Average Cost (ACST)||Each time you request to remove shares, this method will add the adjusted cost of the shares in the account and divide the total cost by the number of shares to calculate an average cost for each share. Adjustments to cost per share may be due to prior calculations or other transactions. The cost basis for shares purchased on or after January 1, 2012 (covered shares) are averaged separately from the cost of shares purchased before January 1, 2012 (uncovered shares). Uncovered shares are removed first.|
|First In, First Out (FIFO)||Shares purchased first are removed first.|
|Last In, First Out (LIFO)||Shares purchased last are removed first.|
|High Cost, First Out (HIFO)||Shares with the highest cost per share are removed first.|
|Low Cost, First Out (LOFO)||Shares with the lowest cost per share are removed first.|
|Loss/Gain Utilization (LGUT)||
Shares are removed based on the calculated gain or loss* per share in the following order:
Hartford Funds will use the Average Cost calculation method unless you instruct us otherwise.
*"Long term" indicates a security held for more than one year. "Short term" indicates a sale of a security held for one year or less.
Actions Affecting Cost Basis
Hartford Funds may take certain actions, such as fund mergers or cash distributions treated as a return of capital, which may affect the cost basis of mutual fund shares you hold. When this occurs, you will find on this page essential information you will need for tax reporting purposes, including:
- IRS Form 8937, which identifies the fund(s) involved, the action taken and any action you should take to ensure that your records reflect an accurate cost basis of the shares held.
- Attachment with the data necessary for cost basis calculation.
This information will be available online for a minimum of ten years.
More Information About Return of Capital
A return of capital is paid when a fund makes a distribution in excess of its current and accumulated earnings and profits. The return of capital distribution is a return of the shareholder's original investment, is non-taxable, and reduces the shareholder's cost basis in the fund shares. The amount of the return of capital distribution will be displayed in Box 3 of Form 1099-DIV.
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The table below identifies the tax forms you may receive from Hartford Funds. The actual forms you will receive depend upon the types of funds you own and the activity on your accounts during the 2017 tax year.
Allow 1–2 weeks from the mailing date for your tax forms to arrive in your mailbox. Also note that some forms are mailed with inserts that provide important information to help you complete your tax return. Sample inserts are provided in the table below for your convenience.
How to obtain additional copies of your forms
You may view or print your tax forms online. You may also contact us to obtain a duplicate copy in the mail.
Need further assistance?
Contact your personal tax advisor for assistance in filling out your individual tax returns with the information on your mutual fund tax forms. If you have questions about the information on your mutual fund tax forms, you may contact us.
You will receive this form if you:
Own a non-retirement mutual fund account and received:
|1099-B||Own a non-retirement mutual fund account and sold or exchanged any shares in 2017. Note: 1099-B will also report information concerning your cost basis.||2017 1099-B||Jan 31|
|1099-R||Took a distribution of $10 or more from your IRA or other retirement account, including return of excess contributions, early distributions and direct rollovers. An exception is trustee-to-trustee transfers which are not reportable on Form 1099-R.||N/A||Jan 31|
|1099-Q||Took a distribution from a Coverdell Education Savings Account (ESA), including transfers and rollover distributions. (Form 1099-Q may also be issued for 529 college savings plans.)||2017 1099-Q||Jan 31|
|1042-S||Are a non-resident alien* or foreign corporation and received gross dividends on a Hartford Funds account, whether paid in cash or reinvested in additional shares.||1042-S||Mar 15|
|5498||Contributed to or had any other reportable event (rollover, recharacterization, Roth conversion) on a Traditional, Roth, SEP or SIMPLE IRA.||2017 5498||May 31|
|5498-ESA||Contributed to a Coverdell ESA for the 2017 tax year, including transfer and rollover purchases.||N/A||May 1|
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Please refer to the Mutual Fund Tax Form Table for the mailing dates for each form and the circumstances under which it is issued. If you haven't received a form, consider these questions: Do you qualify to receive a copy of the form based on the conditions described for issuance? Have you allowed sufficient mailing time?
If your answer to both questions is yes, please follow these instructions to view or obtain a duplicate copy of a form »
If you are registered for online access to your Hartford Funds account, you can use Turbo Tax to import tax information electronically to your federal income tax return for forms 1099-DIV, 1099-R and 1099-B. However, this feature is not currently available for Quicken.
To register for online access to your Hartford Funds account, click here ››
We can accept IRA contributions for 2017 until the tax filing deadline. If you are making a contribution by mail, the postmark must be by midnight on April 17, 2018. If you are making a contribution online, your transaction must be accepted by our system by 4:00 p.m. ET on April 17, 2018.
When a Fund’s profits from sales are greater than losses, they accumulate and contribute to the rise of the Fund’s Net Asset Value (NAV)? Each year the fund will pay out any net profit to investors, the NAV will be reduced by the amount of the distribution on ex-date.
Please note: All excess contribution requests received after the tax filing date (including extensions) will be processed in the year they are received and the removal of the funds will be reflected on the current year's tax form when it is produced.
Form 1099-DIV Frequently Asked Questions
Even though you may still be required to report this income on your return, IRS regulations do not require a Form 1099-DIV on taxable income less than $10. This dividend information is included in your year-end statement.
Federal law generally requires us to withhold a percentage of any distribution, redemption or exchange, if we do not have your correct and certified Social Security or Taxpayer Identification Number or if the IRS has instructed us to do so. To register the correct Social Security or Taxpayer Identification Number, please download and print IRS Tax Form W-9 and mail or fax it to:
P.O. Box 55022
Boston, MA 02205-5022
Form 1099-B Frequently Asked Questions
Cost basis is the total amount of purchases, including reinvested dividends and capital gains, in your account. The cost basis is used to determine any gains or losses on the sale of your shares. Cost basis amounts are adjusted each time shares are purchased or sold. (Learn more about cost basis and how it's calculated by going to the cost basis tab.)
Please note: All cost basis and gain / loss information is calculated with the information that is available to us. You may need to make adjustments to your cost basis that we are not aware of. You are ultimately responsible for the accuracy of your tax return.
Capital gains or losses occur when you sell or exchange shares. The gain or loss shown on your Form 1099-B is the difference between the cost basis of your shares and the amount at which they were sold. The gain/loss information which is not reported to the IRS is an estimate. It is your responsibility to accurately report information on your tax return.
Example: Mary Smith invests $1000 into her mutual fund account and later receives a $100 dividend, which is reinvested. Her cost basis is $1100 She then sells all her shares and receives a check for $1300 Mary has realized a capital gain of $200, which must be reported on her tax return.
Even though you may still be required to report this redemption on your return, IRS regulations do not require a form 1099-B on redemptions of less than 1.000 (or one) share if the gross proceeds are less than $20. This redemption information is included in your year end statement.
Form 1099-R Frequently Asked Questions
Yes. Even though the transaction may not be taxable, the IRS requires all distributions to be reported. Your Form 1099-R will show the redemption. If you return the money within 60 days, you will also receive Form 5498 indicating a "rollover purchase" which offsets the distribution. As a reminder, 5498's are not mailed until May and are not required in order for you to file your tax return.
Yes. Your state of residence when you take distributions is listed on the 1099-R, so if you took a distribution while living in one state, and then took another distribution while living in another state, you will receive separate 1099-Rs for the distributions you took in each state.
If your redemption was used for a qualified expense, you may want to consult with your tax advisor. The shareholder is responsible for reporting to the IRS how a redemption was used for qualified expenses.
Form 1099-Q Frequently Asked Questions
To figure earnings and basis, you may use the Coverdell ESA-Taxable Distributions and Basis worksheet in IRS Publication 970, which can be found at www.irs.gov or by calling the IRS at (800) 829-1040.
The IRS link will open in a separate window. The Hartford assumes no responsibility for content on third-party sites.
Form 5498 Frequently Asked Questions
The deadline for making IRA contributions for the previous year is the tax filing deadline (generally April 15). As a result, form 5498 cannot be issued before that date. Receipt of this form is not required to complete your taxes.
If you have exceeded the IRS contribution guidelines for your plan type and are in an "over-contribution" status, you can request the excess funds be removed by completing the appropriate Return of Excess Contribution Form within Hartford Funds Forms and Literature
Form 5498-ESA Frequently Asked Questions
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Direct Deposit Your IRS Refund
Are you expecting an income tax refund? To make sure your refund works as hard as you do, consider investing it in your Hartford Funds account. Every little bit counts when it comes to meeting your financial goals.
With The Hartford's IRS refund direct deposit, you can instruct the IRS to deposit your tax refund directly into your existing Hartford Funds account by following a few simple steps on your federal income tax form (1040, 1040A, or 1040EZ).
How to Directly Deposit Your Refund
IRS Form 1040 includes a refund section that lets the IRS and The Hartford know into which specific account you want your refund deposited.
- 76b–Routing number: This line designates which financial institution is to receive your check. The Hartford's routing number is 011000028.
- 76c–Type: This line designates to which type of account your refund should be deposited. Because there is no "mutual fund" option on the form, please mark "Checking."
- 76d–Account Number: All account numbers must begin with a prefix HTF. Next, please write in your fund number (you can find this on your account statement, along with your account number). Finally, fill in your account number, preceded by as many zeros as necessary to fill all 17 boxes. Example HTF01230000123456
Here are a few tips to help ensure that your direct deposit is completed smoothly:
Please print clearly. If the information is illegible or incorrect, the deposit will be returned to the IRS, which will then issue a check to the address on the front of your Form 1040.
Deposits cannot be accepted into employer sponsored retirement accounts.
The Hartford will send a confirmation statement in five to ten business days of receiving your deposit.
- Deposits cannot be accepted into 529 college savings accounts.
The Hartford will not be liable if the IRS does not deposit your refund in accordance with your wishes.
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Hartford Schroders Global Strategic Bond Fund announces Return of Capital Distributions
Hartford Schroders Income Builder Fund announces Return of Capital Distributions
Floating Rate Fund announces Return of Capital Distributions
Floating Rate High Income Fund announces Return of Capital Distributions
High Yield Bond Fund announces Return of Capital Distributions
Multi-Asset Income Fund announces Return of Capital Distributions
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4/7/14 - The Hartford Global Growth Fund was acquired by Hartford Global Capital Appreciation Fund
4/7/14 - The Hartford Growth Fund was acquired by The Hartford Growth Opportunities Fund
4/7/14 - The Hartford Value Fund was acquired by The Hartford Value Opportunities Fund
1/9/14 - The Hartford International Value Fund announced a partial reallocation of a previously paid cash distribution to be considered a return of capital
2/22/13 - The Hartford Fundamental Growth Fund was acquired by the Hartford Growth Opportunities Fund