Webull Taxes Explained: How Are Investment Taxes Handled?

Reporting your capital gains/losses and dividends associated with Webull follows the same tax filing process as with any other brokerage or financial institution.

For the tax filing season, Webull will send you an email notifying you when your tax documents are ready to be accessed and downloaded, typically by mid-February. These documents summarize your trading activity, dividends, interest, and any other taxable transactions throughout the year.

You are required to use these documents to accurately report your investment income and gains on your tax return. A copy of each relevant tax form is also sent directly from Webull to the IRS for verification and compliance purposes.

How to Access Your Webull Tax Documents for the Year

Once you receive the notification email, you can follow these steps to download your tax forms:

• Open the Webull app or visit the Webull website and log in to your account.
• Navigate to the 'Account' section, then select 'Tax Documents'.
• Look for the 1099 Composite Form, which contains all relevant tax data for the year.
• Download the PDF version for your records and use during tax filing.

If you have any trouble locating or downloading your forms, Webull’s customer support and help center provide up-to-date assistance.

Understanding Webull’s 1099 Tax Forms

Webull provides a consolidated 1099 composite form that includes multiple types of 1099 forms to streamline reporting:

All these forms are submitted electronically to the IRS to comply with reporting rules.

Crypto Tax Reporting on Webull

For users trading cryptocurrencies via Webull, tax reporting can involve separate considerations:

• Crypto transactions are treated as property for tax purposes and require careful tracking of gains and losses.
• Webull integrations with crypto tax software, such as CoinLedger, can help generate accurate reports for filings.
• Additional IRS forms or attachments related to crypto transactions may be required beyond the standard 1099 composite.

Capital Gains Taxes

• Short-term capital gains occur when securities are sold within one year of purchase and are taxed at your ordinary income tax rates (the same rates as your wages).
• Long-term capital gains apply to assets held for more than one year and are taxed at preferential rates of 0%, 15%, or 20% depending on your taxable income bracket.
• The IRS updates income brackets annually, confirm your applicable rates via the official IRS capital gains rate tables.
• Capital losses can offset capital gains. If your losses exceed gains, you can deduct up to $3,000 annually against ordinary income and carry forward remaining losses to future tax years without limit.
• Maintaining accurate records of holding periods is critical to qualify for long-term rates and optimize tax outcomes.

Dividend Taxes

• Ordinary dividends are taxed at your ordinary income tax rate.
• Qualified dividends come from U.S. companies that meet specific criteria, including a minimum holding period, and are taxed at lower long-term capital gains rates (0%, 15%, or 20%).
• Most dividends from long-term investments qualify as qualified dividends.
• Changes to qualified dividend rules are rare but verify if IRS adjustments apply to your circumstances.

Reporting Free Stock and Bonuses

Any free stock bonuses or rewards Webull grants to users are generally considered taxable income at their fair market value on the day received. These amounts are reported to you and the IRS on Form 1099-MISC as miscellaneous income and should be included on your tax return accordingly.

Types of Tax Forms from Webull

All forms can be downloaded within the Webull app once available.

FAQs: Common Tax Questions for Webull Users

• Q: When exactly will my tax documents be available?
  A: Forms are typically ready by mid-February each tax year; watch for your Webull email notification.
• Q: How do I report fractional share sales under $20?
  A: These may not be reported on Form 1099-B due to IRS de minimis exceptions, but you should still track and report any gains or losses.
• Q: What if I trade cryptocurrency on Webull?
  A: Use integrated crypto tax software tools linked with Webull to properly calculate and report gains or losses.
• Q: Are free stock bonuses taxable?
  A: Yes, at their fair market value upon receipt and typically reported on Form 1099-MISC.
• Q: Can I carry forward losses to future years?
  A: Yes, capital losses exceeding $3,000 per year may be carried forward indefinitely.

Start Your Tax Return Early

If you’re ready to file your taxes, consider using reliable tax preparation software or consulting a tax professional to optimize your investment reporting. You can file your federal return for free using E-File!

Downloading your tax forms early and keeping well-organized records throughout the year will save time and reduce stress during tax season.

Additional Resources

• IRS Capital Gains and Losses - Topic No. 409
• IRS Dividends and Interest - Topic No. 404
• Crypto Tax Software for Webull Users

New to Webull? Check out my full tutorial below!