1099-DIV: Dividends and Distributions
Information for the 2012 Tax Year
This form is sent to shareholders who received dividends and/or capital
gain distributions during the year. If you are a shareholder in a Wells Fargo
Advantage Municipal Income Fund, your federal tax-exempt dividend
income will be reported to you on Form 1099-DIV starting in tax year 2012.
The Tax Increase Prevention and Reconciliation Act (TIPRA) of 2005 requires
investment companies and brokers to report tax-exempt dividends
and interest to the Internal Revenue Service (IRS) including dividends and
interest for alternative minimum tax (AMT) reporting.
The following table will outline how to report 1099-DIV information on your
federal tax return:
Box 1a—Total Ordinary Dividends
The number shown in box 1a is the total of your income dividends and short-term
capital gain distributions. Report the total of your ordinary dividends
from all sources on Form
1040, line 9a, "Ordinary dividends," if you are not required to complete
Schedule B. (Note: Schedule B must be completed if your total ordinary
dividends from all sources exceed $1,500.)
Box 1b—Qualified Dividends
The amount shown in box 1b is the portion of your total dividends that is
eligible for the reduced tax rate. Report this amount on Form 1040, line 9b,
and refer to the instructions for Form 1040 for additional requirements.
Box 2a—Total Capital Gain Distributions
The amount shown in box 2a is your total long-term capital gain distribution
received in 2012. If your only capital gains are from distributions reported in
box 2a, you may be able to report the values on Form 1040, line 13, instead
of Schedule D. See the instructions for Form 1040, line 13,
to determine which forms and lines you must use for your return.
Box 3—Nondividend Distributions
Any amount in this box represents a return of original investment dollars
(return of capital). The cost basis of your investment should be reduced
by the amount of the distribution. In all cases, refer to the detailed instructions
for Form 1040, line 9a.
Box 4—Federal Income Tax Withheld
Any amount shown in this box represents federal income tax withheld,
including backup withholding. The Fund cannot return this money to you.
You must claim it on your individual tax return in the same manner as
payroll withholding. Add this amount to any other federal withholding
amounts shown on your W-2 and other 1099 forms and report it on Form
1040, line 62, "Federal income tax withheld."
Box 6—Foreign Tax Information
A shareholder who receives distributions from mutual funds that contain
securities issued by a foreign government may receive a pass-through credit
of the taxes that were paid by the Fund to the foreign government. Your
share of foreign taxes paid is shown in box 6 and is also included in box
1a of IRS Form 1099-DIV.
Box 10: Tax-Exempt Interest
Amounts shown in box 10 refer to tax-exempt dividends distributed by Wells
Fargo Advantage Municipal Income Funds. Please refer to the instructions
for Form 1040, line 8b, for reporting tax-exempt income. Reporting your
municipal dividends on Form 1040, line 8b, does not make the amount in
box 10 taxable.
Box 11: Specified Private Activity
Amounts shown in box 11 represent the portion of tax-exempt dividends in
box 10 that originated from "specified private activity bonds," more commonly
known as AMT dividends. Please refer to the instructions
6251, Alternative Minimum Tax—Individuals, and consult
your tax advisor to determine if this applies to your particular situation.
Any tax or legal information in this website is merely a summary of our understanding and interpretations of some of the current income tax regulations and is not exhaustive. Investors should consult their tax advisor or legal counsel for advice and information concerning their particular situation. Wells Fargo Funds Management, LLC, Wells Fargo Funds Distributor, LLC, nor any of their representatives may give legal or tax advice.