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Written by Jason Dolan on August 20, 2023
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Webull Taxes Explained 2023: How Are Investment Taxes Handled?

Reporting your capital gains/losses and dividends associated with Webull is the same process as it is with any other financial institution.

Webull will send you an email notifying you that your tax documents are ready for download. These documents show your overall trade outcomes for the year.

You are then required to take that information and document it on your tax return.

A copy of each form is sent directly from Webull to the IRS for verification. 

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When Does Webull Make Tax Forms Available?

Webull will send you an email once tax forms become available.

Expect to receive all of these tax forms around February 2024.

Taxes On Capital Gains

There are two categories of capital gains and losses: short-term and long-term.

A short-term gain is taxed at your ordinary-income tax rate. This is the same as the rate your wages are taxed at.

A long-term gain is going to be taxed at either 0%, 15% or, 20% and based on your ordinary income tax bracket.

You will not have to pay taxes on any money that you lost while investing. Instead, you can use these capital losses to offset capital gains from the same year.

If your losses exceed the amount you made in capital gains, you will be able to carry those losses into subsequent years with some limitations.

Taxes On Dividends

There are two types of dividends: qualified dividends and ordinary dividends.

Ordinary dividends are taxed at your ordinary-income tax rate.

Qualified dividends are certain dividends from US companies that qualify to be taxed at the long-term capital gains rate. You also have to meet a minimum holding period.

Most long term investments earning dividends will be qualified dividends.

Types Of Tax Forms

1099-R: You will receive this form if you received a distribution of $10 dollars or more from a retirement account. 

Consolidated 1099: This form is used to assist you in filing your income tax return. This form will provide 1099-B from broker transactions, 1099-DIV for dividends, and 1099-INT for interest. 

Form 5498: This is a form that your IRA trustee must file with the IRS stating contributions or conversions within your retirement accounts. You will not need form 5498 to file your taxes but it's an important document to keep in your records.

Once the forms are ready, you can access and download them within the Webull app.

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Article written by Jason Dolan

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