As tax season progresses and you begin gathering documents to file your 2025 tax return, one of the most common questions we hear is:
“Why did I receive more than one 1099 for the same investment account?”
If you transferred an investment account between brokerage firms, or worked with multiple institutions during the year, this situation is more common than you might expect. Understanding why broker-dealers and custodians issue tax documents the way they do can help reduce confusion and make the filing process smoother.
Let’s walk through what’s happening and what you should know.
What Is a 1099 and Why Does It Matter?
Broker-dealers and account custodians issue Form 1099 to report taxable investment activity to both you and the IRS. Depending on your holdings and transactions, this may include:
- 1099‑DIV for dividends and capital gain distributions.
- 1099‑INT for interest income.
- 1099‑B for sales of securities.
- 1099‑R for distributions from retirement accounts such as IRAs and employer plans.
- 1099‑MISC or 1099‑NEC in certain situations.
Each form reflects activity that occurred while your assets were held at that specific institution during the calendar year. Importantly, each custodian is only responsible for reporting what happened under its custody.
Why Multiple 1099s Can Be Issued for the Same Account
Receiving multiple 1099s for what feels like “one account” typically happens for one main reason: account transfers during the calendar year.
If your investment account moved from one custodian to another at any point in 2025, each firm may issue its own 1099 covering the period when the assets were held there.
For example:
- Brokerage Firm A reports income and transactions before the transfer.
- Brokerage Firm B reports activity after the transfer is complete.
Even if your account number, investment strategy, or advisor relationship remained consistent, the custodian changed, and tax reporting follows the custodian, not the strategy.
This means:
- Two (or more) 1099s may be issued for the same account.
- The forms are not duplicates.
- Each reflects a different portion of the year.
Why This Is Normal and Important
While multiple 1099s may feel redundant, they are required for accurate tax reporting. Each custodian must report what occurred while your assets were under its watch, and the IRS expects all of that information to be included on your return.
Failing to report one of the forms, even unintentionally, can result in:
- IRS notices or matching errors.
- Underreported income.
- Delays or complications with your return.
The key is to ensure all tax documents are collected and provided to your tax professional.
Timing: When 1099s Are Issued
Most custodians issue consolidated 1099 statements between late January and late February. In some cases, corrected or revised forms may be issued later due to reclassified income or final tax adjustments.
When accounts have been transferred, it’s especially important to:
- Watch for tax documents from both the prior and current institutions.
- Avoid assuming “everything is in one place”.
Common Client Questions We Hear
“Do I need to include both 1099s on my tax return?”
Yes. All 1099s issued for the year should be included, even if they relate to the same account.
“Will this cause me to be taxed twice?”
No. When reported correctly, income is only taxed once. Multiple forms simply report activity from different time periods.
“What if the information looks confusing or overlapping?”
Account transfers can create nuances, particularly around cost basis and sales reporting. This is a good time to reach out to your advisor or tax professional.
Best Practices & How Your Advisor Can Help
To stay organized and avoid surprises:
- Create a checklist of all financial institutions where you held accounts during 2025.
- Consider waiting until late February before filing, to ensure all expected tax documents have arrived.
- Review documents carefully for accuracy and completeness.
- Provide all 1099s—even if they seem redundant—to your tax preparer.
- Reach out early if something appears missing or incorrect.
Your financial advisor can help confirm which documents to expect, explain transfer-related activity, and coordinate with your CPA as needed.
Final Thoughts
Multiple 1099s for the same investment account can be confusing—but in many cases, they are simply the result of account transfers and proper reporting requirements. With a little awareness and organization, this situation can be handled smoothly and without added stress.
If you have any questions, please don’t hesitate to reach out to a member of our team for further discussion.
A future expertly guided.