Deluxe TurboTax and my first time dealing with Vanguard Brokerage account?

Non-investing personal finance issues including insurance, credit, real estate, taxes, employment and legal issues such as trusts and wills.
Post Reply
User avatar
Topic Author
imbogled
Posts: 361
Joined: Wed Feb 28, 2007 3:31 pm
Location: Almost there

Deluxe TurboTax and my first time dealing with Vanguard Brokerage account?

Post by imbogled »

Hello all. Mid year last year I switched my Vanguard mutual funds account to the brokerage platform. I had no problems entering the 1099-DIV information from the mutual funds statement. I am struggling with entering information with the brokerage 1099-DIV though. I have a few questions:

1. The brokerage account gives the totals for all the funds in boxes 1a, 1b, etc. When I get to the question in TurboTax about "portions of these dividends in U. S. Government Interest" do I calculate this number for each individual fund then put the total of all the funds in this box?

*In my case I have the Cash reserve MM (VMFXX) which the unit supplemental form said is 53.08% government interest.

*I have Federal Money Market fund at 37.79%. This percentage was not listed on the supplemental page but I looked it up. Why is it not on the supplemental page?

*Also have Total Stock Market at .16%

*Also have FTSE US (VFWAX )at . 04%

*Also intermediate tax exempt VWIUX (after totaling state/U S. Possession at 4.4%

2. Should I just separate each fund individually and combine the brokerage information with the mutual funds information and redo the individual mutual funds numbers? Is this okay with the IRS as long as everything is accounted for?

3. Why isn't the Federal Money Market fund/ settlement fund not listed in the UIT Supplemental Information page?

Thanks in advance for any and all help!
Geologist
Posts: 3057
Joined: Fri Jan 02, 2009 6:35 pm

Re: Deluxe TurboTax and my first time dealing with Vanguard Brokerage account?

Post by Geologist »

There are multiple threads commenting that the Federal Money Market fund's USGO isn't listed on the 1099. All we can say is that it isn't. (In the not so old days, none were listed on the 1099 and you had to look them all up separately and do the calculation.)

Yes, you calculate the percentage of your dividends from USGO and then put the total in the relevant box (unless you live in a state that has minimum thresholds to count this at all).

I don't understand question 2. With the brokerage platform, you have a single total for all your funds (under Vanguard Marketing Corporation), you don't enter each fund separately.

Edit: now I understand question 2. Do not combine information from the two 1099's. Enter the mutual fund 1099's separately and the brokerage fund 1099 as a total of all funds together.
User avatar
Topic Author
imbogled
Posts: 361
Joined: Wed Feb 28, 2007 3:31 pm
Location: Almost there

Re: Deluxe TurboTax and my first time dealing with Vanguard Brokerage account?

Post by imbogled »

Thank you Geologist for the quick and helpful response!
livesoft
Posts: 86077
Joined: Thu Mar 01, 2007 7:00 pm

Re: Deluxe TurboTax and my first time dealing with Vanguard Brokerage account?

Post by livesoft »

I would start by importing the two 1099s into my tax-prep software and go from there. I would not enter by hand unless the tax-prep software does not allow importing via the internet. I use desktop versions and not phone-app versions.
Wiki This signature message sponsored by sscritic: Learn to fish.
User avatar
HueyLD
Posts: 9789
Joined: Mon Jan 14, 2008 9:30 am

Re: Deluxe TurboTax and my first time dealing with Vanguard Brokerage account?

Post by HueyLD »

I don’t have vanguard brokerage accounts. So, I don’t have any idea how numbers are presented on VBS 1099 and its supplemental pages.

However, you should be able to find on brokerage statements total YTD dividends from each fund with Treasury security income and do the calculation.

Again, keep the calculation for MF statements and VBS statements separate.
User avatar
Topic Author
imbogled
Posts: 361
Joined: Wed Feb 28, 2007 3:31 pm
Location: Almost there

Re: Deluxe TurboTax and my first time dealing with Vanguard Brokerage account?

Post by imbogled »

livesoft wrote: Mon Mar 20, 2023 4:17 pm I would start by importing the two 1099s into my tax-prep software and go from there. I would not enter by hand unless the tax-prep software does not allow importing via the internet. I use desktop versions and not phone-app versions.
I am using TurboTax from a purchased disc. I have never imported information because of concerns of privacy and security. That's one of the main reasons that I purchased a disc in order to avoid having my tax info online so much. Is this being overly paranoid? Does importing make a big difference?

Thanks
Geologist
Posts: 3057
Joined: Fri Jan 02, 2009 6:35 pm

Re: Deluxe TurboTax and my first time dealing with Vanguard Brokerage account?

Post by Geologist »

You will get a variety of opinions (or you can find them on tax software threads here) on how to enter data. Livesoft says import. I have never imported. I always type in manually.

I think you need to check each entry carefully either way.
User avatar
Mel Lindauer
Moderator
Posts: 35782
Joined: Mon Feb 19, 2007 7:49 pm
Location: Daytona Beach Shores, Florida
Contact:

Re: Deluxe TurboTax and my first time dealing with Vanguard Brokerage account?

Post by Mel Lindauer »

Geologist wrote: Mon Mar 20, 2023 5:12 pm You will get a variety of opinions (or you can find them on tax software threads here) on how to enter data. Livesoft says import. I have never imported. I always type in manually.

I think you need to check each entry carefully either way.
FWIW, I've been importing my Vanguard info into TurboTax for years and haven't had any problems. It makes things so much easier and correct vs typing the info in and wondering if you got it right. And it also avoids questions such as the OP has.
Best Regards - Mel | | Semper Fi
User avatar
Mel Lindauer
Moderator
Posts: 35782
Joined: Mon Feb 19, 2007 7:49 pm
Location: Daytona Beach Shores, Florida
Contact:

Re: Deluxe TurboTax and my first time dealing with Vanguard Brokerage account?

Post by Mel Lindauer »

Geologist wrote: Mon Mar 20, 2023 5:12 pm You will get a variety of opinions (or you can find them on tax software threads here) on how to enter data. Livesoft says import. I have never imported. I always type in manually.

I think you need to check each entry carefully either way.
FWIW, I've been importing my Vanguard info into TurboTax for years and haven't had any problems. It makes things so much easier and correct vs typing the info in and wondering if you got it right. And it also avoids questions such as the OP has.

Logging in is via a unique code that Vanguard provides you, so that adds a level of safety and privacy.
Best Regards - Mel | | Semper Fi
Geologist
Posts: 3057
Joined: Fri Jan 02, 2009 6:35 pm

Re: Deluxe TurboTax and my first time dealing with Vanguard Brokerage account?

Post by Geologist »

Mel Lindauer wrote: Mon Mar 20, 2023 5:48 pm
Geologist wrote: Mon Mar 20, 2023 5:12 pm You will get a variety of opinions (or you can find them on tax software threads here) on how to enter data. Livesoft says import. I have never imported. I always type in manually.

I think you need to check each entry carefully either way.
FWIW, I've been importing my Vanguard info into TurboTax for years and haven't had any problems. It makes things so much easier and correct vs typing the info in and wondering if you got it right. And it also avoids questions such as the OP has.

Logging in is via a unique code that Vanguard provides you, so that adds a level of safety and privacy.
The issue is that I have had problems with importing data into various computer programs and I have therefore stopped doing it. I'm fine with your doing it, however. If you search, you will find any number of other people on this board who recommend manual entry. But I think each person can make their own choice.
User avatar
Topic Author
imbogled
Posts: 361
Joined: Wed Feb 28, 2007 3:31 pm
Location: Almost there

Re: Deluxe TurboTax and my first time dealing with Vanguard Brokerage account?

Post by imbogled »

I appreciate all the helpful information very much!

In regards to importing my 1099-DIV brokerage information, how much information would have TurboTax been provided? Would it have gone as far as calculating the U. S. Government Interest portions total without me manually multiplying the various percentages provided in the UIT Supplemental Information page?
User avatar
Mel Lindauer
Moderator
Posts: 35782
Joined: Mon Feb 19, 2007 7:49 pm
Location: Daytona Beach Shores, Florida
Contact:

Re: Deluxe TurboTax and my first time dealing with Vanguard Brokerage account?

Post by Mel Lindauer »

Geologist wrote: Mon Mar 20, 2023 5:54 pm
Mel Lindauer wrote: Mon Mar 20, 2023 5:48 pm
Geologist wrote: Mon Mar 20, 2023 5:12 pm You will get a variety of opinions (or you can find them on tax software threads here) on how to enter data. Livesoft says import. I have never imported. I always type in manually.

I think you need to check each entry carefully either way.
FWIW, I've been importing my Vanguard info into TurboTax for years and haven't had any problems. It makes things so much easier and correct vs typing the info in and wondering if you got it right. And it also avoids questions such as the OP has.

Logging in is via a unique code that Vanguard provides you, so that adds a level of safety and privacy.
The issue is that I have had problems with importing data into various computer programs and I have therefore stopped doing it. I'm fine with your doing it, however. If you search, you will find any number of other people on this board who recommend manual entry. But I think each person can make their own choice.
Not sure what kind of problems you've had, but doing it manually is definitely your (and others) choice. However, when one has problems doing it manually (as is the case here), then perhaps he/she should try the download and see if that solves the problems.
Best Regards - Mel | | Semper Fi
User avatar
HueyLD
Posts: 9789
Joined: Mon Jan 14, 2008 9:30 am

Re: Deluxe TurboTax and my first time dealing with Vanguard Brokerage account?

Post by HueyLD »

Geologist,

If you don’t mind sharing, what kind of data importing problems did you encounter?

I use a combo of manual data entry and importing. Manual entries are for simple stuff such as a single number on a 1099-INT. However, I import brokerage data due to the number and types of data involved. I have been lucky with no importing issues, but would like to learn from others what potential problems could be.
Lucien786
Posts: 64
Joined: Wed Aug 01, 2018 3:16 pm

Re: Deluxe TurboTax and my first time dealing with Vanguard Brokerage account?

Post by Lucien786 »

Does anyone know the reason why there are two different types of Vanguard statement options, one for mutual funds and one for brokerage accounts? Does this go back to how Vanguard used to have mutual fund-only accounts and then they started converting people to brokerage accounts? I started recently enough that I only have a brokerage account, although it is all invested in Vanguard mutual funds.
User avatar
HueyLD
Posts: 9789
Joined: Mon Jan 14, 2008 9:30 am

Re: Deluxe TurboTax and my first time dealing with Vanguard Brokerage account?

Post by HueyLD »

Lucien786 wrote: Tue Mar 21, 2023 7:57 am Does anyone know the reason why there are two different types of Vanguard statement options, one for mutual funds and one for brokerage accounts? Does this go back to how Vanguard used to have mutual fund-only accounts and then they started converting people to brokerage accounts? I started recently enough that I only have a brokerage account, although it is all invested in Vanguard mutual funds.
Vanguard started out as a mutual fund company without a brokerage unit. It then added a brokerage unit known as VBS which was administered by a third party vendor. The main Vanguard mutual fund operation was kept separate from VBS for quite some time until Vanguard decided to bring the brokerage service in-house.

And a lot of old timers still prefer to be on the old mutual fund platform because all they want from Vanguard is mutual funds w/o any brokerage stuff.

In the year of conversion from MF to brokerage platform, you will receive two 1099s, one from the MF platform and the other from the brokerage unit.
furwut
Posts: 2123
Joined: Tue Jun 05, 2012 8:54 pm

Re: Deluxe TurboTax and my first time dealing with Vanguard Brokerage account?

Post by furwut »

imbogled wrote: Mon Mar 20, 2023 5:56 pm I appreciate all the helpful information very much!

In regards to importing my 1099-DIV brokerage information, how much information would have TurboTax been provided? Would it have gone as far as calculating the U. S. Government Interest portions total without me manually multiplying the various percentages provided in the UIT Supplemental Information page?
Just finished my taxes. I don’t think the US Government Obligations data was included with the imported data.

I used the figures on the Combined 1099 to calculate them for Turbo Tax.
Winnie
Posts: 47
Joined: Mon Jan 28, 2019 8:25 am

Re: Deluxe TurboTax and my first time dealing with Vanguard Brokerage account?

Post by Winnie »

My recent experience with Vanguard tax documents and TT. I imported all documents into TT (desktop, disc). To make clear, this relates to a mutual fund account 1099 and a brokerage account 1099 which both hold mutual funds. I calculated the USGO for each fund on the mutual fund account tax statement. I used the % figures found @ Vanguard. I then made the adjustment for each fund in TT. For the brokerage account I used the information provided, in the supplement sheet, to calculate the amount of USGO for each fund held. I totaled the amounts and used the total amount to answer the adjustment question in TT. Either way, mutual or brokerage account, I had to calculate the USGO amount of dividends. The difference, in TT, was multiple adjustments on the mutual fund account and one adjustment on the brokerage account. I hope this answers your question.
User avatar
Topic Author
imbogled
Posts: 361
Joined: Wed Feb 28, 2007 3:31 pm
Location: Almost there

Re: Deluxe TurboTax and my first time dealing with Vanguard Brokerage account?

Post by imbogled »

Winnie wrote: Tue Mar 21, 2023 9:35 am My recent experience with Vanguard tax documents and TT. I imported all documents into TT (desktop, disc). To make clear, this relates to a mutual fund account 1099 and a brokerage account 1099 which both hold mutual funds. I calculated the USGO for each fund on the mutual fund account tax statement. I used the % figures found @ Vanguard. I then made the adjustment for each fund in TT. For the brokerage account I used the information provided, in the supplement sheet, to calculate the amount of USGO for each fund held. I totaled the amounts and used the total amount to answer the adjustment question in TT. Either way, mutual or brokerage account, I had to calculate the USGO amount of dividends. The difference, in TT, was multiple adjustments on the mutual fund account and one adjustment on the brokerage account. I hope this answers your question.
Thank you for that helpful and detailed response!
User avatar
Monster99
Posts: 628
Joined: Tue Aug 29, 2017 10:28 am

Re: Deluxe TurboTax and my first time dealing with Vanguard Brokerage account?

Post by Monster99 »

I use the detailed data that is behind the consolidated 1099 form. I plug in the USGO data for each fund, as the tax program will calculate and then pass the amount on to the state program. H&R Block does percentage and not absolute $'s.... not sure about TT.
Post Reply