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Import Your Fidelity Tax Information into Your TurboTax® Return

Most customers can import their tax information from Fidelity beginning February 3, 2012.

NOTE: Before filing your tax return, carefully compare all the information you imported and reported on your tax return against the official tax forms which were sent to you through the mail to make sure all items on those forms have been appropriately accounted for and adjusted as necessary based on your individual tax situation.

The IRS mailing deadline for most tax forms is February 15. Fidelity will mail all 2011 brokerage and Fidelity Funds account consolidated (1099) tax forms in January and through February 15, 2012.

If you use a TurboTax® tax preparation product to prepare your taxes, please do not attempt to import your tax information from Fidelity Investments until you have received your tax reporting statement. Due to data capacity limitations of the TurboTax® product, if you are a very active trader you may need to use the CD version of TurboTax® instead of the web version, in order to successfully import your tax information. For extremely active traders, importing tax information using the CD version may also be unsuccessful.

For account eligibility and more information regarding this service choose one of the links below:

Import Your 1099 and Cost Basis Information From Fidelity

Information from the following Fidelity non–retirement account tax forms can be automatically imported into your TurboTax® return:

1099–DIV Dividends and Distributions

1099–INT Interest Income

1099–OID Original Issue Discount

1099–MISC Miscellaneous Income

1099–B Proceeds from Broker and Barter Exchange Transactions

Note: Data imported from certain forms may need to be further adjusted. See below for more details.

Once imported, TurboTax® products should then:

  • Automatically report the information on certain sections of the federal income tax return(s) you prepare using TurboTax® software, or
  • Allow you to determine how the information should be reported on the federal income tax return(s) you prepare using TurboTax® software.

How to import your information

1 – Enter your SSN (or Username) and Password

How to import your information 1 – Enter your Social Security number (SSN), Tax Identification number (TIN), or username, and password. When asked where to import information from, select Fidelity Investments and enter the same information that you use to log on to Fidelity.com. The tax information available for each of the non–retirement accounts associated with your SSN will display.

2 – Review the list of available accounts

Review the account numbers listed next to each tax form. The information from these tax forms is available to be imported from Fidelity. Only your non–retirement and retirement accounts will be included in this list as well as accounts that you have access to on Fidelity.com using your SSN (or username) and password. (Note: Institutional retirement plan accounts serviced by Fidelity Employer Services Company LLC, for example 401(k) accounts, will not be available for this download.)

3 – Select the accounts from which you wish to import tax information

After reviewing all of the tax form information from the accounts available for import, select only information from those accounts that you want to import into your TurboTax® return. You can import tax information for all of the accounts linked to your SSN and password.

You will need to repeat this process to import Fidelity account tax information from accounts that are not linked to your SSN.

Carefully review all of the information that you import and compare it to your records. This import is not a substitute for your Form(s) 1099 tax statement, which is sent to you under separate cover. In certain instances, the imported data may not reflect all of the information needed for tax reporting. Be sure to review the following information, as you may be required to modify, delete or otherwise act upon some or all of the information that you import from Fidelity. For example, certain information will be imported but will require that you make an affirmative choice as to how it should be accounted for on your Form 1040.

About the import data

The import containing your tax information is based on information known to Fidelity or in some instances, information that you have provided to Fidelity. This information may not include all adjustments necessary to be made prior to its use in the preparation of your tax return. Fidelity provides a variety of information to help you complete your tax return. We recommend that you read the following web guides, available in the Tax Center of Fidelity.com, before filing your return:

Additionally, you may wish to consult IRS Publication 550, Investment Income and Expenses.

It is important to understand that the tax information import function downloads information from Fidelity into your TurboTax® return and does not always place that information directly into Form 1040. It is essential that you complete the review processes contained within your tax preparation software in their entireties to ensure that all Fidelity information is correctly reported to the IRS.

Be sure to verify the information that you import against your own records in order to insure accurate and complete reporting of all required tax information on your federal income tax return. Although Fidelity is providing the tax information import as a courtesy service, Fidelity does not guarantee that the information provided is entirely sufficient or accurate for tax reporting purposes, and Fidelity is not liable for your reliance on, and use of, the import feature. If you have specific questions regarding the preparation of your tax return, contact your tax advisor or the IRS.

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New Cost Basis Reporting Regulations Begin with Tax Year 2011

In accordance with new IRS rules, Fidelity is reporting cost basis and other related information for certain covered securities on Form 1099-B, Proceeds from Broker and Barter Exchange Transactions, beginning with Tax Year 2011 (printed and mailed in January - February 15, 2012). This is information that we are required to report to you and to the IRS.

Covered Securities

Generally, the new regulations define covered securities as:

  • Stock in a corporation purchased on or after January 1, 2011 (not including stocks eligible for average basis)
  • Registered Investment Companies, including open-end mutual funds, and stocks acquired in dividend reinvestment plans, purchased on or after January 1, 2012
  • Additional types of securities, as determined by the Treasury Department, purchased on or after January 1, 2013
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Adjustments to Proceeds Listed on Form 1099–B

Certain information reported on your Form 1099–B will differ from what is imported into your TurboTax® return. For example, Fidelity will adjust the proceeds amount provided on the tax information import to account for certain events on Schedule D, such as wash sales in Fidelity Funds (not brokerage) Accounts, and premiums for exercised or assigned options. As a result, the proceeds amount listed on your Form 1099–B may not match the amount imported into your TurboTax® return and ultimately reported on the Schedule D (as well as the new Form 8949) you prepare using the software. You may also need to make further adjustments for other events or items not tracked by Fidelity.

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Enhanced Form 1099–B Reporting for Brokerage Accounts

As a result of the incorporation of new IRS Cost Basis Reporting Rules, Brokerage Account Forms 1099-B now report the following additional information, in comparison to prior years: date of acquisition, type of gain or loss (short-term or long-term), cost basis (including any adjustments), wash sale disallowed amounts, gain or loss, and whether the cost basis information for a given transaction is being reported to the IRS.

Reporting to the IRS--For all transactions, Fidelity will report the following information to the IRS: Description (9), Date of Sale or Exchange (1a), Sales Price (2), and Federal Income Tax Withheld (4). Note that the numbers following each category correspond to the equivalent box numbers on the individual, stand-alone IRS Form 1099-B.
For any transaction on your statement, if Column (6), is marked with a "P" (P = Provided to the IRS), we are also reporting to the IRS:

  • Date of Acquisition (1b)
  • Cost Basis (3)
  • Wash Sale Loss Disallowed (5)
  • Term (8)

You may also need to make further adjustments for other events or items not tracked by Fidelity.

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Form 1040, Schedule D, Including the New Form 8949

The TurboTax® software will continue to complete Form 1040, Schedule D, as well as the new Form 8949.  As in past years, when filing their tax returns, most customers must report all proceeds that they received during the year, as well as gain/loss information, by completing Form 1040, Schedule D, Capital Gains and Losses. In order to incorporate information from the enhanced Form 1099-B into the Form 1040 process, the Schedule D for tax year 2011 includes a new Form 8949, Sales and Other Dispositions of Capital Assets.

Form 8949 will require taxpayers to report their capital gains and losses in more detail than in previous years. For example, taxpayers must indicate whether cost basis was reported on the Form 1099-B (or that they did not receive a Form 1099-B). Proceeds and cost basis information from each sale must be listed on Form 8949 and the total short-term and long-term information must be summarized on Schedule D.

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Adjustments to Form 1099–MISC

Information reported on Line 3 (Other Income) of Form 1099–MISC (mailed separately) is not imported into your TurboTax® return. There are many types of "Other Income," and different rules may apply depending on the type of income you receive. The amount on Form 1099–MISC, Line 3 is often reported on the "Other Income" line of Form 1040 along with a description that identifies it. See IRS Publication 525, Taxable and Nontaxable Income, the instructions for your tax return, and/or consult your tax advisor for information on how it should be reported on tax returns and whether any offsetting deductions can be claimed.

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Alternative Minimum Tax (AMT) Information on Form 1099–INT

Your federal tax liability could be affected by interest received from private activity bonds. The tax information import reports the total private activity bond interest earned in your account on Form 1099–INT, line (or column) 9. Include this amount as you compute your potential alternative minimum tax exposure. If you derived interest from private activity bonds, you may be required to enter such interest manually on Form 6251, Alternative Minimum Tax-Individuals.

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Certain option transactions

If you wrote (sold) a call option during 2011, the sale proceeds will be included in the data imported into your TurboTax® return. If the option was open as of December 31, 2011, you may need to edit the imported data to properly compute your tax liability.

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Cost basis

Cost basis is usually equal to what you paid for your shares (generally the purchase price), plus or minus certain adjustments. You must calculate cost basis to determine the reportable capital gain or loss generated by the sales of your securities. Cost basis and capital gains and losses are reported on Form 8949 and on Form 1040, Schedule D. Following IRS cost basis rules, Fidelity will report gross proceeds as well as certain cost basis and holding period information to you and to the IRS on your annual Form 1099-B as required or allowed by law, but such information may not reflect adjustments required for your tax reporting purposes. Fidelity reports cost basis for Fidelity Funds account (not brokerage account) customers in the supplemental realized gain/loss sections of the 1099 tax statement.  Taxpayers should verify such information when calculating reportable gain or loss. Fidelity specifically disclaims any liability arising out of a customer's use of, or any tax position taken in reliance upon, such information. Unless otherwise specified, Fidelity determines cost basis at the time of sale based on the average cost method for open-end mutual funds and based on the first-in, first-out (FIFO) method for all other securities. Consult your tax advisor for further information. See Fixed Income Securities, below, regarding enhancements to cost basis information provided for fixed income securities.

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Cost basis calculation methods

There are two IRS-approved methods for calculating cost basis: "cost basis" and "average basis" (average basis is often referred to as average cost). The cost basis method uses the actual purchase cost of the shares sold (plus or minus required adjustments). The cost basis method is available for all share types. The average cost method determines an average cost per share for all shares you have accumulated. Average cost is available only for mutual fund shares and qualifying stock held in a dividend reinvestment plan (a "DRIP").

Unless you elect a different cost basis method, Fidelity will apply its default methods. Fidelity's default for mutual fund positions is average cost. Fidelity's default for all other positions is cost basis.

We will deplete from your account positions, set to the cost basis method, on a first-in first-out ("FIFO") basis unless, before settlement, you make specific identification of the shares to be depleted. To deplete shares on a basis other than FIFO, you can identify the individual lots you wish to sell, or you can provide a "standing instruction" to Fidelity. You can provide a standing instruction by selecting an account disposal method. This allows you to make specific identification trades using a set method. Fidelity cannot make any changes to your basis method or specific identification information once a trade has settled.

Fidelity began offering trading of specific shares on Fidelity.com on November 16, 2000. If you identified specific shares to be sold at the time of trade that identification should be reflected in the information you imported. If you selected specific shares manually rather than electronically, if some or all of the tax lots you specified did not correspond with our records, or if you used that method for a transaction prior to November 16, 2000, then cost basis and gain (loss) information provided by Fidelity will be based on the first–in, first–out (FIFO) method, and it will likely not correspond to your records. Be sure to carefully review the information provided and compare it to your own records. Positions set to average cost are always depleted on a FIFO basis.

If you have not consistently used the cost basis method that Fidelity uses when calculating estimated cost basis for a particular security, then the data you import may need more adjustments than if you had consistently used that method. You should always use your own records to verify any cost basis information imported for tax reporting purposes. TurboTax® products will allow you to modify any information that you import from Fidelity.

If your cost basis and/or date of acquisition information is missing for some of your securities, it may be because you purchased the security before February 1993 or because you purchased it at another financial institution. In either case, your cost basis is not known to Fidelity so be sure to refer to your own tax records for these transactions and provide your cost basis information to supplement the sales information that will be imported into your TurboTax®. In addition, please note that Fidelity's cost basis information system has a cumulative lifetime limit on how much activity it can track for each individual security position in an account. For this purpose, each buy, sell, dividend, wash sale, disallowed loss, stock split, stock merger, etc. is an event. For some customers, this limit can be reached at three megabytes of activity. Cost basis information for events beyond that limit will usually show as "not available or unknown" in the Tax Reporting Statement and will not be imported into TurboTax®. In addition, any cost basis information shown may be outdated due to events occurring after the limit is exceeded. Once the limit is reached, all cost basis information for the affected position will need to be tracked and updated by the investor.

Cost basis information is not imported for certain investments, including but not limited to, futures contracts, forward contracts, and other derivatives. Consult your tax advisor for guidance on reporting gains and losses generated by sales of these types of investments.

See IRS Publication 550, Investment Income and Expenses, and/or your tax advisor, for additional information.

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Cost basis for Mergers/Acquisitions

Fidelity tracks cost basis for securities that undergo mergers or acquisitions. Fidelity may have adjusted your cost basis information if you received cash or other property at the time of the merger. Refer to the Transaction Details section of your monthly or quarterly Investment Report to determine if your cost basis was adjusted. Consult your tax advisor for information on how to report these transactions to the IRS.

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Cost basis for Section 1256 contracts

The cost basis information from the sale or annual December 31 Mark–to–Market of Section 1256 contracts will not be available in the import provided by Fidelity. Refer to your Form(s) 1099 Tax Statement or your own records to complete your tax return. See IRS Form 6781, Gains and Losses From Section 1256 Contracts and Straddles, for additional information.

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Customer–provided cost basis

Customer–provided cost basis information is not checked by Fidelity. Be sure to refer to your Tax Reporting Statement to determine those securities for which cost basis information was provided by the customer but is being reported by Fidelity as a courtesy service. Note that when positions are transferred between accounts with different taxpayer identification numbers, in certain cases, cost basis information may be automatically transferred and deemed to be customer–provided. As an added convenience, Fidelity provides up to 9 years of account statements online. Fidelity provides cost basis information to customers as a courtesy service; however, such information may not reflect all adjustments which may need to be made when calculating and reporting gain or loss resulting from a sale transaction. Customers should verify cost basis information provided by Fidelity against their own records when determining the appropriate cost basis to be used when calculating gains and losses for tax reporting purposes. Consult your tax advisor if you have specific questions.

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Employee stock option plans

If you are a participant in an employee stock option plan serviced by Fidelity Investments, you may notice differences in the tax information imported compared to the Investment Report provided by Fidelity.

If you exercised an incentive stock option or sold stock acquired through a stock purchase plan during the disqualified disposition period at a gain, a portion of the gain may be taxed as ordinary income. Additionally, if you sold stock at a gain that was acquired through a stock purchase plan that was originally issued at a discount, a portion of the gain may be taxed as ordinary income. Remember to distinguish and report both the capital gain amount (on Form 8949 and Schedule D) and the ordinary income amount (on your 1040) for these transactions. Your Form(s) 1099 Tax Reporting Statement will identify these transactions with a special footnote. Consult your tax advisor regarding what portion of the gain, if any, may be taxed as ordinary income and how to reflect such ordinary income treatment on your tax forms.

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Fixed income securities

Your Tax Reporting Statement from Fidelity may display certain adjustments to estimated cost basis and the associated gains and losses for certain fixed income securities, including adjustments for premium, acquisition premium or discount, as well as accreted Original Issue Discount (OID). These adjustments to your estimated cost basis and the associated gains or losses are reflected in your TurboTax® import, except in the case of contingent debt instruments. For transactions involving contingent debt instruments, you will need to refer to your Tax Reporting Statement and/or your own cost records to complete your tax return, because adjustments to your estimated cost basis and the associated gains or losses for those securities are not imported into TurboTax®.

Your Tax Reporting Statement from Fidelity indicates the fixed income securities for which these adjustments to estimated cost basis have been provided. When making adjustments for securities acquired at a premium, Fidelity assumes that such amounts were amortized by the taxpayer over the life of the security from acquisition date through disposition date, and calculates premium amortization using the yield–to–maturity method and acquisition premium using the ratable accrual method. Where indicated on your Tax Reporting Statement, Fidelity–provided adjusted cost basis reflects market discount accretion (if applicable) which was calculated using the straight–line method and was recognized at disposition date. Estimated adjusted cost basis and associated gains and losses displayed in your Tax Reporting Statement and imported into your TurboTax® return may not reflect all adjustments necessary for tax reporting purposes and may also not apply if you are using an alternative amortization calculation method. Customers should verify the adjusted cost basis and associated gain/loss information provided by Fidelity against their own records when determining the proper amounts to be used for tax reporting purposes. Consult your tax advisor and/or refer to IRS Publication 550, Investment Income and Expenses, for additional information.

You may also need to adjust the amount of OID interest reported by Fidelity. If, for example, you paid an acquisition or bond premium, or if the obligation is a stripped bond or a stripped coupon you must compute your proper OID amount. Refer to IRS Publication 1212, Guide to Original Issue Discount (OID) Instruments, to determine the correct OID amount to report on your tax return.

Amortization, accretion and similar adjustments to cost basis are not provided in your Tax Reporting Statement (and are not imported into your TurboTax® return) for certain fixed income securities, such as short–term instruments, unit investment trusts, foreign fixed income securities, or securities that are subject to early prepayment of principal (pay downs). For transactions relating to these securities, you will need to refer to your own records to complete your tax return.

See below for additional information about certain foreign fixed income securities.

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Cost basis for securities bought in foreign currency and proceeds for securities sold in foreign currency

For securities bought in a foreign currency, Fidelity calculates cost basis in U.S. dollars (USD) by converting the foreign currency cost into USD based on exchange rates on the trade date of the purchase. For securities sold (or redeemed) in a foreign currency, Fidelity calculates USD proceeds by converting the foreign currency proceeds into USD based on exchange rates on the trade date of the sale. If you acquired the foreign currency cost, or sold the foreign currency proceeds, in exchange for USD in a separate currency transaction linked to the security transaction, then the trade date exchange rate that Fidelity used is the spot rate at the time of the linked currency transaction. Otherwise, the trade date exchange rate that Fidelity used is the end-of-day exchange rate.

For equity securities bought and/or sold in foreign currency, the estimated USD cost basis and USD proceeds, described above, are imported into TurboTax®. For fixed income securities bought and/or sold in foreign currency, the USD proceeds, described above, are also imported into TurboTax®. However, for tax reporting purposes, you may be required to determine your actual USD cost basis, proceeds, and gain/loss based on exchange rates on the settlement dates of the applicable transactions. As a result, you may need to adjust the Fidelity-provided USD cost basis and USD proceeds. Consult your tax advisor for more information.

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Foreign Fixed Income Securities

If you sold (or otherwise disposed of) a fixed income security that is denominated in a currency other than U.S. dollars (USD) or that makes a payment calculated by reference to the value of a currency other than USD, you may be required by certain tax rules (namely section 988 of the Internal Revenue Code) to report all or a portion of your realized gain/loss as ordinary income/loss. For these types of securities, the portion of your realized gain/loss that is treated as ordinary income/loss is generally the portion of that realized gain/loss that is attributable to changes in exchange rates. Neither your Tax Statement nor the import program will specifically identify these types of bonds or determine the amounts of ordinary income/loss and/or capital gain/loss realized thereon.

Fidelity does not import into TurboTax® any cost basis or realized gain/loss information in a foreign currency for any fixed income security that, according to Fidelity's records, you've made any purchase or sale of in a currency other than USD. For these securities, you will need to refer to your Tax Statement and your own records to determine your cost basis and realized gain/loss. You will also need to refer to your own records to determine whether any of these securities is denominated in a currency other than USD or makes a payment calculated by reference to the value of a currency other than USD, and if so what (if any) portion of your realized gain/loss is treated as ordinary income/loss. You will then need to input the appropriate information into the relevant section(s) of your tax return.

For any fixed income securities for which Fidelity does import estimated realized gain/loss information, you will still need to refer to your own records to determine whether any of these securities is denominated in a currency other than USD or makes a payment calculated by reference to the value of a currency other than USD. For any such security, you will need to determine what (if any) portion of your realized gain/loss is treated as ordinary income/loss and make appropriate modifications to the reporting of that security on your tax return.

Consult your tax advisor for more information.

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Passive Foreign Investment Companies

Certain foreign securities may be considered to be interests in a Passive Foreign Investment Company (PFIC) under the Internal Revenue Code. If you hold shares in a PFIC the tax import will not correctly report the tax information required by the IRS for these securities, which may depend on shareholder–level tax elections. Additionally, if you sold shares in a PFIC during 2011, the sales proceeds and cost basis reporting for these securities may not be correctly reported on the tax import program. Please consult your tax advisor or the IRS for additional information on tax elections and reporting requirements for shareholders of PFICs.

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Foreign currencies

Fidelity tracks estimated cost basis information for foreign currency positions in your account, and as a courtesy service provides you with estimated cost basis, proceeds and gain/loss information for transactions in which you dispose of foreign currency positions (i.e., exchanges of foreign currency for USD, exchanges of foreign currency for a security, and exchanges of foreign currency for a different foreign currency) in the Currency Realized Gain/Loss section of the supplemental section of your Tax Statement. None of this information is imported into TurboTax® at this time. For these transactions, you will need to refer to your Tax Statement and your own records, and consult your tax advisor if necessary, to complete your tax return.

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Foreign tax credit

You may be able to claim taxes paid to a foreign country as a deduction or as a credit on your Federal Tax Return. You will need to make this election after you import your account tax information from Fidelity. It is usually more advantageous to claim a credit on your return. You should consult your tax advisor to determine which option is best for your personal tax situation. Fidelity provides additional information for Fidelity Mutual Funds that have elected to pass through foreign tax credits to shareholders in Information for Investors with Certain Fidelity International Funds  in the Tax Center at Fidelity.com. For FundsNetwork® mutual funds, contact or visit the website of the fund family. Refer to IRS Publication 514, Foreign Tax Credit for Individuals, for additional information on foreign tax credits.

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Limited partnerships

The tax information import does not contain any cost basis information for Limited Partnerships that you may hold in your account. You should refer to your own records and the IRS Form K–1 provided by the partnership for completing your income tax return for these securities.

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Short sales

The IRS requires Fidelity to report all short sale transactions that were opened and closed in 2011 on Form 1099–B. Short sale tax reporting rules for may be different for corporations and other non–individual taxpayers. Please contact your tax advisor for more information.

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State income tax issues

The tax information import provided by Fidelity is based on reporting requirements for your Federal tax return. If you are using this information to complete your state tax return, obtain your state income tax reporting regulations to determine any adjustments or modification to the information provided. For example, tax–exempt municipal income and income derived from certain U.S. Treasury obligations may not be imported properly for the completion of your state income tax return.

You can visit the Fidelity Fund-Specific Tax Information Page in the Tax Center at Fidelity.com to obtain information regarding state–income tax issues for Fidelity mutual fund's distributions you received.

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Tax Exempt Interest on Form 1099–INT

The total of your federal tax–exempt interest and federal exempt interest dividends is reported on Form 1099–INT as "tax–exempt interest." Such interest may be taxable for state tax purposes. The supplemental section of your Tax Statement will contain state tax exempt information for state-specific Fidelity municipal funds. For Fidelity's federal municipal bond (including money market) funds, information on tax–exempt interest for each state is available on Fidelity's Tax Center. For non–Fidelity mutual funds, you will need to contact the applicable fund company for information on their state tax–exempt interest distributions. Please also read the State Income Tax Issues section immediately above. A portion of the "tax–exempt interest" reported on Form 1099–INT may be specified private activity bond interest. Specified private activity bond interest is also reported on Form 1099–INT and is required to be taken into account in computing the federal alternative minimum tax. Please read the Alternative Minimum Tax Information on Form 1099–INT section above.

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Wash sales

A wash sale occurs when a taxpayer sells securities (including options) at a loss, and within the 61–day window beginning 30 days before and ending 30 days after the sale, purchases shares of the same security or a substantially identical security (regardless of whether in the same or of a different account). If a wash sale occurs, the loss from the transaction is disallowed for tax purposes, and the amount of the loss is added to the cost basis of the newly–purchased securities. The wash sale rule applies across calendar years; therefore realized losses from security sales late in December 2011 could be washed if you re–acquire the security within 30 days in January 2012. Unless otherwise indicated, Fidelity automatically adjusts cost basis for any wash sales in identical CUSIPS within the same Fidelity account. Customers who hold substantially identical securities with different CUSIPs and customers who hold identical or substantially identical accounts must include those additional transactions (not tracked by Fidelity) in their wash sale calculations.

Fidelity estimates disallowed loss on a security sold in such a wash sale based on the cost basis information provided by Fidelity for that security at the time of the wash sale. Fidelity then adds the amount of the disallowed loss to the cost basis that it provides for the newly–purchased security. Fidelity–provided estimated cost basis for the security sold in the wash sale may not have reflected all adjustments necessary for tax reporting purposes (as described under Cost Basis above). As a result, the disallowed loss calculated by Fidelity and the cost basis for the newly-purchased securities provided by Fidelity may need to be adjusted for tax reporting purposes. Accordingly, customers should verify that all wash sales are appropriately reported on their tax returns and that any prior wash sales are appropriately taken into account when reporting a subsequent disposition of the newly-purchased securities.

Fidelity does not adjust for wash sales that occur across multiple accounts, nor does it report wash sales resulting from substantially identical securities. You must check your own records across all of your Fidelity and non–Fidelity accounts to ensure you are correctly reporting any wash sale that may have occurred. Consult your tax advisor for specific questions regarding wash sales.

It is possible to have a partial wash sale in your account if the number of shares sold is different from the number of shares purchased. For example, if you originally sell 100 shares of a security at a loss and subsequently purchase 50 shares of the same security within 30 days, only the loss attributable to 50 shares is disallowed under the wash sale rule. To report the partial wash sale, Fidelity will split the sale into two transactions within the tax import. For this example, the sale of 100 shares will be displayed as two sales for 50 shares each. Disallowed losses are determined based on the earliest sold lot within the period. Loss deferrals are applied on a lot–by–lot basis beginning with the oldest shares acquired in the 60–day period surrounding the loss. The holding period of the reacquired shares is added to the recently acquired shares.

Be sure to refer to your Tax Reporting Statement and your own records to confirm that all wash sales are appropriately reported and categorized on your tax return, and any cost basis and holding period adjustments from prior wash sales are appropriately recorded in your tax records.

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Worthless securities

Cost basis information is provided for securities that Fidelity has removed from your account in 2011, because we have received information indicating that the security was worthless. Losses on worthless securities are treated as occurring on the last day of the tax year in which they are deemed to be worthless. Consult a tax advisor as to the proper year in which the loss should be reflected. If you report the security as worthless in the current year, you will also need to adjust the date of disposition of the worthless security to December 31, 2011, because Fidelity displays the date the security was actually removed from your account. This is not correct for Federal tax reporting purposes.

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Import your 1099–R from Fidelity

If you took a distribution from your Fidelity retail retirement account, you may be able to import this information directly from Fidelity.

Fidelity will report the gross distribution amount as well as the amount of any Federal or state tax withholding. Refer to the instructions on the back of your paper 1099–R for additional information regarding this tax form. Fidelity does not report or calculate the taxable amount of the distribution. Refer to IRS Publications 560, Retirement Plans for Small Business (SEP, SIMPLE, and Qualified Plans), and 571, Tax-Sheltered Annuity Plans (403(b) Plans), to help calculate the taxable amount of your distribution. Please consult your tax advisor for more information.

Please note that the ability to import 1099–R information is not available for Institutional Retirement Accounts (for example, 401(k) or 403(b) plans services by Fidelity Employer Services Company).

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Import your W–2 from Fidelity

If Fidelity processes your paycheck and you have access to Fidelity NetBenefits® you can automatically import your Form W–2 and most of your Tax Reporting Statement information directly into TurboTax® products.

Once imported, TurboTax® products should then:

  • Automatically report the information on certain sections of the federal income tax return(s) you prepare using TurboTax® software, or
  • Allow you to determine how the information should be reported on the federal income tax return(s) you prepare using TurboTax® software.

How to import your information

Importing your tax information is easy. Have your Form W–2 Wage and Tax Reporting Statement available, as you will be asked to verify information from it.

  • For TurboTax® desktop products or the TurboTax® Online, enter your Employer Identification Number. Next, select "Fidelity Investments NetBenefits®" and enter the same Social Security Number (SSN) or username and password that you use to log on to netbenefits.fidelity.com. Follow the steps to import your information.
  • Fidelity will provide the tax information for all W–2s associated with your SSN that are processed by Fidelity. To complete this process, simply choose the W–2 information you want to import. You will need to repeat this process to import W–2 information for each taxpayer filing a joint return.

Be sure to carefully review all of the information that you import with your own records. This import is not a substitute for your official W–2 tax forms, which are sent to you under separate cover. In certain instances, the imported data may not reflect all of the information needed for tax reporting. Be sure to review the information you have imported, as you may be required to modify, delete or otherwise act upon some or all of the information that you import from Fidelity. For example, certain information will be imported but will require that you make an affirmative choice as to how it should be accounted for on your Form 1040.

About the import data

The import containing your tax information is based on information known to Fidelity or, in some instances, information that you have provided to Fidelity. This information may not include all adjustments necessary to be made prior to use of the information in the preparation of your tax return.

It is important to understand that the tax information import function downloads information from Fidelity into your TurboTax® return and does not place that information directly into Form 1040. It is essential that you complete the review processes contained within your tax preparation software in their entireties to ensure that all Fidelity tax information is correctly reported to the IRS.

Be sure to verify the information that you import against your own records in order to insure accurate and complete reporting of all required tax information on your federal income tax return. Although Fidelity is providing the tax information import as a courtesy service, Fidelity does not guarantee that the information provided is entirely sufficient or accurate for tax reporting purposes, and Fidelity is not liable for your reliance on, and use of, the import feature. If you have specific questions regarding the preparation of your tax return, contact your tax advisor or the IRS.

Log in to NetBenefits for more information and a list of common questions and answers regarding your W–2. After you login, select the HR & Paycheck tab and click on Frequently Asked Questions.

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The tax information contained herein is general in nature, is provided for informational purposes only, and should not be construed as legal or tax advice. Fidelity does not provide legal or tax advice. Fidelity cannot guarantee that such information is accurate, complete, or timely. Laws of a particular state or laws which may be applicable to a particular situation may have an impact on the applicability, accuracy, or completeness of such information. Federal and state laws and regulations are complex and are subject to change. Changes in such laws and regulations may have a material impact on pre- and/or after-tax investment results. Fidelity makes no warranties with regard to such information or results obtained by its use. Fidelity disclaims any liability arising out of your use of, or any tax position taken in reliance on, such information. Always consult an attorney or tax professional regarding your specific legal or tax situation.

Before using the Fidelity Tax Center, review important legal information and terms of use applicable to products, services, and/or information provided by, or accessed through, the Tax Center by the following companies:

Fidelity Investments   H&R Block   Intuit   CCH  GainsKeeper  TradeLog

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