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What Is Form 1099-B? Proceeds from Broker Transactions

You can think of a 1099-B as something similar to a credit card statement — but for your investment activity.

Many, or all, of the products featured on this page are from our advertising partners who compensate us when you take certain actions on our website or click to take an action on their website. However, this does not influence our evaluations. Our opinions are our own. Here is a list of our partners and here's how we make money.

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NerdWallet's content is fact-checked for accuracy, timeliness and relevance. It undergoes a thorough review process involving writers and editors to ensure the information is as clear and complete as possible.

Sabrina Parys

Editor & Content Strategist

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Expertise

• Taxes
• Investing

Sabrina Parys is an editor and content strategist on the taxes and investing team at NerdWallet, where she manages and writes content on personal income taxes. Her previous experience includes five years as a copy editor and associate editor in academic and educational publishing. She is based in Brooklyn, New York.

Published in

Editor & Content Strategist

Sabrina Parys is an editor and content strategist on the taxes and investing team at NerdWallet, where she manages and writes content on personal income taxes. Her previous experience includes five years as a copy editor and associate editor in academic and educational publishing. She is based in Brooklyn, New York.

Pamela de la Fuente

Managing Editor

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23 years of experience

Expertise

• Personal Finance
• Budgeting
• Taxes
• Retirement
• Underrepresented communities

Pamela de la Fuente is a managing editor of NerdWallet's personal finance content. She leads budgeting, money-making, consumer credit and and debt coverage.

Ask her and her talented team about why credit scores matter, how to save money on your grocery bill, finding the right side hustle, how to protect your identity for free and more.

Previously, she led taxes and retirement coverage at NerdWallet.

Pamela joined NerdWallet after working at companies including Hallmark Cards, Sprint Corp. and The Kansas City Star. She has been a writer and editor for more than 20 years.

Pamela is a thought leader in content diversity, equity, inclusion and belonging, and finds ways to make every piece of content conversational and accessible to all.

She is a graduate of the Maynard Institute's Maynard 200 program, and the National Association of Black Journalists Executive Leadership Academy. She is a two-time winner of the Kansas City Association of Black Journalists' President's Award. She was also founding co-chair of NerdWallet's Nerds of Color employee resource group.

Managing Editor

Pamela de la Fuente is a managing editor of NerdWallet's personal finance content. She leads budgeting, money-making, consumer credit and and debt coverage.

Ask her and her talented team about why credit scores matter, how to save money on your grocery bill, finding the right side hustle, how to protect your identity for free and more.

Previously, she led taxes and retirement coverage at NerdWallet.

Pamela joined NerdWallet after working at companies including Hallmark Cards, Sprint Corp. and The Kansas City Star. She has been a writer and editor for more than 20 years.

Pamela is a thought leader in content diversity, equity, inclusion and belonging, and finds ways to make every piece of content conversational and accessible to all.

She is a graduate of the Maynard Institute's Maynard 200 program, and the National Association of Black Journalists Executive Leadership Academy. She is a two-time winner of the Kansas City Association of Black Journalists' President's Award. She was also founding co-chair of NerdWallet's Nerds of Color employee resource group.

What is a 1099-B?

A 1099-B is an informational document that brokers send to people who have sold securities, such as stocks or bonds, through a brokerage during the year. It outlines which securities were sold and categorizes them by tax type to help investors understand their capital gains or losses.

Tax filers need their 1099-B forms to file their tax returns and other forms at tax time, such as Schedule D and Form 8949. A 1099-B doesn’t report on or include information about investments held in a 401(k), an IRA or other retirement account.

Who receives a 1099-B?

If you sold any of the following throughout the tax year through a broker or brokerage, you can expect a 1099-B in your inbox or in the mail:

Stocks.

Bonds and other debt instruments.

Short sales.

Commodities.

Regulated futures contracts.

Foreign currency contracts.

Forward contracts.

Options.

Securities futures contracts for cash

Other instances that could result in a 1099-B landing on your doorstep:

You participated in a barter exchange. The IRS considers the value of the trade taxable earned income

You received cash, stock or another type of property from a corporation that your broker knows or “has reason to know

» MORE: Learn about taxes on stocks

on Priority Tax Relief's website

on Alleviate Tax's website

How a 1099-B form works

A 1099-B lists your investment sales activity and the type of transactions they were. It also typically notes:

When you acquired a security, and how much you paid for it.

When you sold the security and for how much.

Whether the brokerage withheld any state or federal taxes on your behalf.

1099-b 2025

What is a 1099-B used for?

All of the information on a 1099-B is intended to help you determine your net capital gain (profit) or loss from your transactions, which will help you figure out how your investments will be taxed.

Generally, here's how that works:

Capital gains: When you sell a security for more than you originally paid for it (your cost basis), you may have to pay either long-term or short-term capital gains tax on your profit. Which tax rate applies depends in part on how long you held the asset before deciding to sell.

Capital losses: If you sell something for less than you paid for it, that’s a capital loss. Because the IRS taxes you on net capital gains (your total gains minus your total losses), capital losses can help reduce your capital gains and even ordinary income.

Keep in mind that even though investment gains are taxable, many things, such as tax credits and deductions, can offset or influence your final tax bill. Good tax software will help you import your 1099-B and calculate your bill.

» Ready to crunch the numbers? Try our capital gains tax calculator

What if there’s more information on my 1099-B?

If you do a lot of business with a brokerage, you may receive what’s called a composite substitute 1099

Depending on what income you generate through the brokerage, you may see information about your dividends (1099-DIV), interest (1099-INT), stock sales (1099-B), or even miscellaneous payments (1099-MISC) on a single form.

The easiest way to tell your 1099 forms apart is to look at the abbreviations that follow the “1099” — they are typically shorthand for the type of taxable income.

When will I get a 1099-B form?

Brokers are required to send a 1099-B and composite 1099s by Feb. 17

If you file with incomplete or incorrect information, you may need to file an amended return later. You can also opt to request a tax extension using Form 4868 if you think you’ll need more time to get the correct information, but keep in mind your tax payment is still due on the regular filing deadline in mid-April.

» Need to call in a professional? How to find a CPA near you

on Priority Tax Relief's website

on Alleviate Tax's website

Table of Contents

on Larson Tax Relief's website

Tax Levies & Liens Release, plus Wage Garnishment Relief;

End Penalties & Interest and Resolve Back Taxes;

IRS Audit Defense, Tax Negotiation, and Payroll Tax Support.

on Larson Tax Relief's website