2019 Form 1099-DIV Reference Guide

Vanguard mutual fund investors 2019 Form 1099-DIV Reference Guide

A guide to reporting Vanguard mutual fund dividends and capital gains distributions from your Form 1099-DIV on your federal income tax return (IRS Form 1040) When you’ll receive your Forms 1099-DIV How to access your tax forms Vanguard will send you a Form 1099-DIV each year any of the following Tax forms for your Vanguard account will be posted online at are true: vanguard.com. You’ll find your forms in your personal tax center as soon as they’re available. Simply log on to your account, and • You earned at least $10 in taxable dividends and capital gains from the menu, choose My Accounts and select Tax center. Visit distributions from your taxable mutual fund holdings. investor.vanguard.com/taxes/ for a full listing of tax forms and • You earned at least $10 in tax-exempt interest dividends from your their anticipated availability. Vanguard municipal bond funds or Vanguard Tax-Managed Balanced Fund Admiral™ Shares. To get an email each time a tax form is ready, sign up at • Federal or foreign taxes were withheld from any distribution. vanguard.com/edelivery.

Forms will be available on the following dates: You must report ALL distributions to the IRS • You’ll receive a Form 1099-DIV this year if you earned $10 or more Type of nonretirement account Date available in dividends or capital gains from your mutual fund holdings. For Mutual fund only End of January (Except Vanguard distributions of less than $10, refer to your year-end account statement. Real Estate Index Fund* and • Although tax-exempt interest dividends from Vanguard municipal bond Vanguard Managed Payout Fund** funds and Vanguard Tax-Managed Balanced Fund Admiral Shares are which will be available in mid- generally exempt from federal income tax, you must still report these February) earnings on your federal income tax return. *Real estate investment trusts (REITs) generally can’t calculate their taxable earnings until after the end of the tax year. For this reason, we request an extension from the IRS each year to mail completed Form 1099-DIVs for Vanguard Real Estate Index Fund. **Form 1099-DIV for Vanguard Managed Payout Fund will mail separately from the Form 1099-DIV for other funds due to income reallocations after year-end. For this reason, we’ve requested an extension from the IRS for the 2019 tax year to mail completed Forms 1099-DIV for Vanguard Managed Payout Fund.

Vanguard funds not held in a brokerage account are held by The Vanguard Group, Inc., and are not protected by SIPC. Brokerage assets are held by Vanguard Brokerage Services, a division of Vanguard Marketing Corporation, member FINRA and SIPC. 1 How Vanguard’s Form 1099-DIV is organized Box 2a (Total capital gain distributions) Box 2a shows the long-term capital gains by fund from your taxable Read these instructions carefully so that you can accurately report Vanguard mutual fund holdings. See the example on page 4. How your distributions. you report them will depend on whether you’re required to file Schedule D. Box 1a (Total ordinary dividends) If you’re required to file Schedule D Box 1a shows total ordinary dividends, including short-term capital gains, You must report your total capital gains on Schedule D of Form 1040, by fund from your taxable Vanguard mutual fund holdings. unless both of the following exceptions apply: You must report ordinary dividends on line 3b of Form 1040. If the total of • The only amounts you have to report on Schedule D are capital gains all ordinary dividends (Box 1a) received from all your taxable investments from Box 2a of your Form 1099-DIV. is more than $1,500, you must list each ordinary dividend income source • None of your Forms 1099-DIV have an amount in Box 2b (Unrecaptured on Schedule B of Form 1040. Section 1250 gain), Box 2c (Section 1202 gain), or Box 2d (Collectibles (28%) gain). Box 1b (Qualified dividends) Box 1b shows the portion of the amount in Box 1a (Total ordinary If you’re not required to file Schedule D dividends) that’s eligible for the reduced qualified dividend income (QDI) Enter your total capital gains (Box 2a) from all your taxable investments tax rate (20%, 15%, or 0%, depending on your modified adjusted gross on line 6 of Form 1040 and check the box on that line. income and taxable income). To claim this reduced tax rate, you must have held your fund shares for at least 61 days during the 121-day period Box 5 (Section 199A dividends) beginning 60 days before the ex-dividend date. The ex-dividend date (also Box 5 shows the portion of the amount in Box 1a that may be eligible for known as the “reinvest date”) is when the fund’s net asset value is the 20% qualified business income deduction under Section 199A. For adjusted to account for a distribution. Your “personal QDI” is the QDI additional information, see the IRS Instructions for Form 1040. You should reported to you in Box 1b, reduced (if necessary) by dividends for which consult a qualified tax professional about your eligibility to claim the 20% you didn’t meet the holding-period requirement. Enter the amount of deduction for any amounts in Box 5. qualified dividends on line 3a of Form 1040. Qualified dividends are also included in the total ordinary dividend amount required on line 3b. Box 7 (Foreign tax paid) Box 7 shows the foreign tax that you may be able to claim as a deduction or credit on Form 1040. Vanguard also has a separate statement reporting this information. It will be sent to those for whom it’s applicable.

Box 11 (Exempt-interest dividends) Box 11 shows the tax-exempt interest dividends distributed by Vanguard municipal bond funds and Vanguard Tax-Managed Balanced Fund Admiral Shares. Enter this figure on line 2a of Form 1040.

2 Box 12 (Specified private activity bond interest dividends) Example: How to report dividends and capital gains distributions Box 12 shows the portion of the amount in Box 11 that’s attributable to In the example on the next page, the investor is required to file Schedule private activity bonds. Income generated by these types of bonds is one D and has received the following mutual fund distributions: of the “tax preference” items added back to your taxable income to determine if you must pay the alternative minimum tax (AMT). The AMT Health Care Fund Inv is a separate tax designed to ensure that all taxpayers pay a minimum • $126.84 in ordinary dividends, as shown in Box 1a (Total ordinary amount of income tax by eliminating the special treatment of tax-exempt dividends). The investor reports amounts shown in Box 1a on all income and other income deductions. For information on determining your 1099-DIVs from all sources in either Part II of Schedule B (where each AMT liability, if any, refer to “Do I owe alternative minimum tax?” on Vanguard mutual fund is reported separately on its own line), which page 5. flows through to line 3b on Form 1040, or directly on line 3b if Schedule B isn’t required. In prior years, a separate calculation was required to determine how much of your income was attributable to private activity bonds. In most cases, • $117.94 in QDI, as shown in Box 1b (Qualified dividends). The this calculation is no longer necessary. To determine your taxable income investor reports the sum of all QDI shown in Box 1b on all Forms for AMT purposes, report the figure from Box 12. 1099-DIV on line 3a of Form 1040, assuming that the investor meets the QDI holding-period requirement, as described previously. If needed, you can calculate the percentage of your tax-exempt interest dividends attributable to private activity bonds using the information • $215.27 in long-term capital gains, as shown in Box 2a (Total provided on your Form 1099-DIV. To do so, simply divide the figure in capital gain distributions). The investor reports the sum of all Box 12 by the figure in Box 11. For example, if $100 of tax-exempt long-term capital gains from all sources on line 13 of Schedule D, interest dividends is reported in Box 11 and $20 is reported in Box 12, which flows to line 6 of Form 1040. the percentage of tax-exempt income attributable to private activity bonds is 20%. High-Yield Tax-Exempt Fund Inv • $820.62 in tax-exempt interest dividends, as shown in Box 11 If a fund reports less than $10 in tax-exempt interest dividends on your (Exempt-interest dividends). The investor reports the sum of all tax- Vanguard year-end account statement, you must calculate the portion of exempt interest dividends from all sources on line 2a of Form 1040. that income attributable to private activity bonds and include it in your AMT calculation. Call us at 800-662-2739 if you need help calculating the additional income attributable to private activity bonds. Investment professionals are available Monday through Friday from 8 a.m. to 10 p.m., Eastern time.

Boxes 13–15 (State, State identification number, State tax withheld) These boxes report state income tax withheld from all of your Vanguard nonretirement mutual fund holdings.

3 SCHEDULE D OMB No. 1545-0074 (Form 1040 or 1040-SR) Capital Gains and Losses ▶ Attach to Form 1040, 1040-SR, or 1040-NR. 2019 ▶ Department of the Treasury Go to www.irs.gov/ScheduleD for instructions and the latest information. Attachment Internal Revenue Service (99) ▶ Use Form 8949 to list your transactions for lines 1b, 2, 3, 8b, 9, and 10. Sequence No. 12 Name(s) shown on return Your social security number

Did you dispose of any investment(s) in a qualified opportunity fund during the tax year? Yes No If “Yes,” attach Form 8949 and see its instructions for additional requirements for reporting your gain or loss. Part I Short-Term Capital Gains and Losses—Generally Assets Held One Year or Less (see instructions)

Department of the Treasury—Internal Revenue Service (99) See instructions for how to figure the amounts to enter on the (g) (h) Gain or (loss) lines below. (d) (e) Adjustments Subtract column (e) Form 1040 U.S. Individual Income Tax Return 2019 OMB No. 1545-0074 IRS Use Only—Do not write or staple in this space. Proceeds Cost to gain or loss from from column (d) and This form may be easier to complete if you round off cents to (sales price) (or other basis) Form(s) 8949, Part I, combine the result Filing Status Single Married filing jointly Married filing separately (MFS) Head of household (HOH) Qualifying widow(er) (QW) whole dollars. line 2, column (g) with column (g) Check only If you checked the MFS box, enter the name of spouse. If you checked the HOH or QW box, enter the child’s name if the qualifying person is one box. 1a Totals for all short-term transactions reported on Form a child but not your dependent. ▶ 1099-B for which basis was reported to the IRS and for Your first name and middle initial Last name Your social security number which you have no adjustments (see instructions). However, if you choose to report all these transactions If joint return, spouse’s first name and middle initial Last name Spouse’s social security number on Form 8949, leave this line blank and go to line 1b . 1b Totals for all transactions reported on Form(s) 8949 with Example:Home address How(number and street).to Ifreport you have a P.O. box,dividends see instructions. and capital gainsApt. no. distributionsPresidential Election Campaign Box A checked ...... Check here if you, or your spouse if filing SCHEDULE D OMB No. 1545-0074 jointly, want $3 to go to this fund. (Form2 Totals1040 or for 1040-SR) all transactions reported on Form(s)Capital 8949 with Gains and Losses City, town or post office, state, and ZIP code. If you have a foreign address, also complete spaces below (see instructions). Checking a box below will not change your Box B checked ...... ▶ Attach to Form 1040, 1040-SR, or 1040-NR. tax or refund. You Spouse 3 Totals for all transactions reported on Form(s) 8949 with 2019 Department of the Treasury ▶ Go to www.irs.gov/ScheduleD for instructions and the latest information. Foreign country name Foreign province/state/county Foreign postal code Attachment If more than four dependents, Internal BoxRevenue C checkedService (99) . . . .▶ Use. .Form. .8949. to. list. your. . transactions for lines 1b, 2, 3, 8b, 9, and 10. Sequence No. 12 see instructions and ✓ here ▶ Department of the Treasury—Internal Revenue Service (99) Name(s)4 Short-term shown on return gain from Form 6252 and short-term gain or (loss) from Forms 4684, 6781, and 8824 .Your. social4 security number

StandardForm 1040 SomeoneU.S. Individual can claim: IncomeYou as a dependent Tax ReturnYour spouse20 as 19a dependentOMB No. 1545-0074 IRS Use Only—Do not write or staple in this space. 5 Net short-term gain or (loss) from partnerships, S corporations, estates, and trusts from Deduction Spouse itemizes on a separate return or you were a dual-status alien Schedule(s) K-1 ...... 5 Filing Status Single Married filing jointly Married filing separately (MFS) Head of household (HOH) Qualifying widow(er) (QW) Did you dispose of any investment(s) in a qualified opportunity fund during the tax year? Yes No Age/Blindness 6 Short-term capital loss carryover. Enter the amount, if any, from line 8 of your Capital Loss Carryover Check only You:If you checkedWere the born MFS before box, Januaryenter the 2, name 1955 of spouse.Are blindIf you checkedSpouse: the HOH orWas QW born box, before enter Januarythe child’s 2, 1955name if the qualifyingIs blind person is If “Yes,” attach Form 8949 and see its instructions for additional requirements for reporting your gain or loss. one box. Worksheet in the instructions ...... 6 ( ) Dependents (seea childinstructions): but not your dependent. ▶ (2) Social security number (3) Relationship to you (4) ✓ if qualifies for (see instructions): Child tax credit Credit for other dependents Part7 Net I short-termShort-Term capital Capital gain or Gains (loss). and Combine Losses—Generally lines 1a through Assets 6 in column Held (h). One If you Year have or any Less long- (see instructions) Your(1) First first name name and middle initial Last name Last name Your social security number term capital gains or losses, go to Part II below. Otherwise, go to Part III on the back ...... 7 SAMPLE SHAREHOLDER X X X X X 1 2 3 4 See instructions for how to figure the amounts to enter on the (g) (h) Gain or (loss) (d) (e) Adjustments Subtract column (e) If joint return, spouse’s first name and middle initial Last name Spouse’s social security number lines below. Part II Long-Term Capital Gains and Losses—GenerallyProceeds Assets Held MoreCost Than Oneto gain Year or loss from(see instructions)from column (d) and This form may be easier to complete if you round off cents to (sales price) (or other basis) Form(s) 8949, Part I, combine the result whole dollars. line 2, column(g) (g) (h)with Gain column or (loss) (g) Home address (number and street). If you have a P.O. box, see instructions. Apt. no. Presidential Election Campaign See instructions for how to figure the amounts to enter on the (d) (e) Adjustments Subtract column (e) Check here if you, or your spouse if filing lines below. 1 Wages, salaries, tips, etc. Attach Form(s) W-2 ...... 1 1a Totals for all short-term transactions reported on Form Proceeds Cost to gain or loss from from column (d) and jointly, want $3 to go to this fund. This form may be easier to complete if you round off cents to (sales price) (or other basis) Form(s) 8949, Part II, combine the result City, town or post office,2a Tax-exempt state, and ZIP interest code. . If you. have. . a foreign2a address, also complete820.62 spacesb Taxable below (see interest. instructions). Attach Sch. B if required 2b Checking a box below will not change your whole 1099-B dollars. for which basis was reported to the IRS and for line 2, column (g) with column (g) 3a Qualified dividends . . . . 3a 117.94 b Ordinary dividends. Attach Sch. B if requiredtax or refund.3b You 126.84Spouse Standard which you have no adjustments (see instructions). DeductionForeign for—country name4a IRA distributions . . . . . 4a Foreign province/state/countyb Taxable amount Foreign. . postal. . code. . If more4b than four dependents, 8a TotalsHowever, for ifall you long-term choose transactionsto report all thesereported transactions on Form • Single or Married c Pensions and annuities . . . 4c d Taxable amount ...... see instructions4d and ✓ here ▶ on1099-B Form for 8949, which leave basis this was line reportedblank and to go the to IRS line and 1b for. filing separately, $12,200 which you have no adjustments (see instructions). Standard Someone5a Social can security claim: benefitsYou .as a. dependent. 5a Your spouse as a dependentb Taxable amount ...... 5b 1b Totals for all transactions reported on Form(s) 8949 with • Married filing However, if you choose to report all these transactions Deduction 6 Capital gain or (loss). Attach Schedule D if required. If not required, check here ...... ▶ 6 215.27 Box A checked ...... jointly or Qualifying Spouse itemizes on a separate return or you were a dual-status alien on Form 8949, leave this line blank and go to line 8b . widow(er), 7a Other income from Schedule 1, line 9 ...... 7a $24,400 2 Totals for all transactions reported on Form(s) 8949 with Age/Blindness You: Were born before January 2, 1955 Are blind Spouse: Was born before January 2, 1955 Is blind 8b Totals for all transactions reported on Form(s) 8949 with • Head of b Add lines 1, 2b, 3b, 4b, 4d, 5b, 6, and 7a. This is your total income ...... ▶ 7b Box B checked ...... Dependentshousehold, (see instructions): ✓ Box D checked ...... 8 a Adjustments to income from Schedule 1, line(2) 22 Social . security. . number. . . (3). Relationship. . . to you. . . . .(4) . if .qualifies8a for (see instructions): 54,405.00 26,211.00 28,194.00 $18,350 3 Totals for all transactions reported on Form(s) 8949 with (1) First name Last name Child tax credit Credit for other dependents 9 Totals for all transactions reported on Form(s) 8949 with • If you checked b Subtract line 8a from line 7b. This is your adjusted gross income ...... ▶ 8b Box C checked ...... any box under Box E checked ...... Standard 9 Standard deduction or itemized deductions (from Schedule A) . . . . . 9 SCHEDULE4 Short-term B gain from Form 6252 and short-term gain or (loss) from Forms 4684, 6781, and 8824 . . 4 OMB No. 1545-0074 Deduction, 10 Totals for all transactions reported onInterest Form(s) 8949 and with Ordinary Dividends 10 Qualified business income deduction. Attach Form 8995 or Form 8995-A . . . 10 (Form5 1040Net ors 1040-SR)hort-term gain or (loss) from partnerships, S corporations, estates, and trusts from see instructions. IMPORTANT TAX DOCUMENT Box F checked...... 11a Add lines 9 and 10 ...... 11a Schedule(s) K-1 . . . ▶ .Go .to www.irs.gov/ScheduleB...... for. instructions. . . . and. . the. latest. . information...... 5 2019 Vanguard Department of the Treasury Attachment b Taxable income. Subtract line 11a from line 8b. If zero or less, enter -0- ...... 11b 11 Gain from Form 4797, Part I; long-term gain▶ from Attach Forms to Form 2439 1040 and or 1040-SR.6252; and long-term gain or (loss) Contact Info: 800-662-2739 Internal6 RevenueShort-term Service capital(99) loss carryover. Enter the amount, if any, from line 8 of your Capital Loss Carryover Sequence No. 08 1 Wages, salaries, tips, etc. Attach Form(s) W-2 ...... 1 from Forms 4684, 6781, and 8824 ...... 11 RECIPIENT'SFor Disclosure, TIN: Privacy XXX- XXAct,-1234 and Paperwork Reduction Act Notice, see separate instructions. Cat. No. 11320B Form 1040 (2019) Name(s) Worksheet shown on return in the instructions ...... Your social6 ( security number ) 12 Net long-term gain or (loss) from partnerships, S corporations, estates, and trusts from Schedule(s) K-1 12 2a Tax-exempt interest . . . . 2a b Taxable interest. Attach Sch. B if required 2b P.O. Box 2600 7 Net short-term capital gain or (loss). Combine lines 1a through 6 in column (h). If you have any long- SAMPLE SHAREOWNER 3a Qualified dividends . . . . 20193a Form 1099b - OrdinaryDIV dividends. Attach Sch. B if required Valley3b Forge, PA 19482 - 2600 13 Capitalterm capital gain gainsdistributions. or losses, See go the to instructionsPart II below. Otherwise,. . . . go. to. Part. . III .on .the. back...... 13 215.27 PO StandardBOX 2600 Part I 1 List name of payer. If any interest is from a seller-financed mortgage and the 7 Amount Deduction for— 4a IRA distributions . . . . . 4a b Taxable amount ...... 4b 14 Long-term capital loss carryover. Enter the amount, if any, from line 13 of your Capital Loss Carryover VALLEY FORGE PA 19482-2600 Dividends and Distributions buyer used the property as a personal residence, see the instructions and list this • Single or Married c Pensions and annuities . . . 4c d Taxable amount ...... 4d Part Worksheet II Long-Term in the instructions Capital Gains. . and. .Losses—Generally...... Assets. . . Held. . More. . Than. . .One. .Year. (see14 (instructions) ) filing separately, Interest interest first. Also, show that buyer’s social security number and address ▶ $12,200 5a Social security benefits . . . 5a b Taxable amount ...... 5b 15 Net long-term capital gain or (loss). Combine lines 8a through 14 in column (h). Then go to Part III on • Married filing Copy B For Recipient See instructions for how to figure the amounts to enter on the (g) (h) Gain or (loss) 6 Capital gain or (loss). Attach Schedule D if required. If not required, check here ...... ▶ 6 (See instructions the back ...... (d)...... (e). . . . . Adjustments. . 15 Subtract column (e) jointly or Qualifying OMB No. 1545-0110 andlines the below. widow(er), 7a Other income from Schedule 1, line 9 ...... 7a For Paperwork Reduction Act Notice, see your tax return instructions. Proceeds Cat. No. 11338HCost toSchedule gain or loss D (Form from 1040from or column 1040-SR) (d) and2019 $24,400 instructionsThis form formay be easier to complete if you round off cents to (sales price) (or other basis) Form(s) 8949, Part II, combine the result State • Head of b Add lines 1, 2b, 3b, 4b, 4d, 5b, 6, and 7a. This is your total income ...... ▶ 7b Formswhole 1040 dollars. and line 2, column (g) with column (g) identification 1040-SR, line 2b.) household, 8 a Adjustments to income from Schedule 1,PAYER'S line 22 . . Recipient...... State. . 8a no. $18,350 Fund Name TIN Account number (Box 13) (Box 14) 8a Totals for all long-term transactions reported on Form • If you checked b Subtract line 8a from line 7b. This is your adjusted gross income ...... ▶ 8b Note: If you 1 any box under Specified 1099-B for which basis was reported to the IRS and for 9 Standard deduction or itemized deductions (from Schedule A) . . . . . 9 received a Form StandardTotal Unrecap. Federal income private activity 1099-INT, which Form you have no adjustments (see instructions). ordinaryDeduction, Qualified Total capital Sec. 1250 Nondividend Section 199A Exempt-interest bond interest State tax 10 Qualified business income deduction. Attach Form 8995 or Formtax 8995-A . . . 10 1099-OID, or dividendssee instructions. dividends gain distr. gain distributions withheld dividends Foreign tax paid dividends dividends withheld However, if you choose to report all these transactions (Box 1a) (Box11 a1b) Add lines(Box 9 and2a) 10 . (Box. .2b) . . . (Box. 3). . . (Box. 4). . . (Box. . 5) . . . (Box. 7). . . (Box. 11). 11a (Box 12) (Box 15) substitute on Form 8949, leave this line blank and go to line 8b . statement from b Taxable income. Subtract line 11a from line 8b. If zero or less, enter -0- ...... 11b a brokerage8b Totals firm, for all transactions reported on Form(s) 8949 with HIGH-YIELD TAX-EXEMPT INV 23-2473415 00000001234 OMB No. 1545-0074 For Disclosure, Privacy Act, and Paperwork Reduction Act Notice, see separate instructions. Cat. No. 11320B Form 1040 (2019) listSCHEDULE the firm’s B 0.00 0.00 0.00 0.00 0.00 0.00 0.00 0.00 820.62 94.04 0.00 Box D checked ...... name(Form as1040 the or 1040-SR) Interest and Ordinary Dividends HEALTH CARE FUND INV 23-2439149 00000001234 payer9 andTotals enter for all transactions reported on Form(s) 8949 with ▶ Go to www.irs.gov/ScheduleB for instructions and the latest information. 2019 126.84 117.94 215.27 0.00 0.00 0.00 0.00 0.00 0.00 0.00 0.00 theDepartment total Box interest of theE checked Treasury ...... Attachment shownInternal Revenueon that Service (99) ▶ Attach to Form 1040 or 1040-SR. Sequence No. 08 10 Totals for all transactions reported on Form(s) 8949 with form.Name(s) shown on return Your social security number Box F checked2 . Add. .the. amounts. . . on. line. 1...... 2 11 Gain from Form3 4797,Excludable Part I;interest long-term on gainseries from EE Formsand I 2439U.S. andsavings 6252; bonds and long-termissued after gain 1989. or (loss) 1 List name of payer. If any interest is from a seller-financed mortgage and the Amount Part fromI Forms 4684, Attach 6781, Formand 8824 8815 ...... 3 11 12 Net long-term gainbuyer or (loss) used from the partnerships,property as a Spersonal corporations, residence, estates, see and the trustsinstructions from Schedule(s) and list this K-1 12 Interest 4 Sinterestubtrac tfirst. line Also,3 fro mshow line that2. E buyer’snter the social resul tsecurity here an numberd on Fo andrm 1 address040 or 1 ▶040-SR, 13 Capital gain distributions. line 2b See. . the. instructions...... ▶. . 4 13 (See14 instructionsLong-term Note: capital If lossline 4carryover. is over $1,500, Enter theyou amount, must complete if any, from Part lineIII. 13 of your Capital Loss Carryover Amount and the Worksheet in the instructions ...... 14 ( ) Partinstructions II for 5 List name of payer ▶ Forms15 Net1040 long-term and capitalHEALTH gain CARE or (loss).FUND INVCombine lines 8a through 14 in column (h). Then go to Part III on 126.84 Ordinary1040-SR, the line back 2b.) ...... 15

For Paperwork Reduction Act Notice, see your tax return instructions. Cat. No. 11338H Schedule D (Form 1040 or 1040-SR) 2019 DividendsNote: If you 1 received a Form (See1099-INT, instructions Form and1099-OID, the or instructionssubstitute for Formsstatement 1040 from and This is important tax information and is being furnished to the IRS (except as indicated). If you are required to file a return, a negligence penalty or other sanction may be imposed on you if this income is taxable and the IRS determines that it has not been reported. Please Note: Each specific fund name, NOT simply Vanguard, must be reported along with the related tax information on Form 1040, Schedule(s) B and D. 1040-SR,a brokerage line firm, 3b.) 5 This applies to Form 1099-DIV. CUSIP® is a trademark of American Bankers Association. list the firm’s Note:name Ifas you the (keep for your records) Page 1 of 2 receivedpayer and a enterForm 1099-DIVthe total interest or substituteshown on that statementform. from a brokerage firm, 2 Add the amounts on line 1 ...... 2 list the firm’s name as the 3 Excludable interest on series EE and I U.S. savings bonds issued after 1989. payer and enter Attach Form 8815 ...... 3 the ordinary 4 Subtract line 3 from line 2. Enter the result here and on Form 1040 or 1040-SR, dividends shown Add the amounts on line 5. Enter the total here and on Form 1040 or 1040-SR, on that form. 6 line 2b ...... ▶ 4 line 3b ...... ▶ 6 126.84 Note: If line 4 is over $1,500, you must complete Part III. Amount Note: If line 6 is over $1,500, you must complete Part III. 5 List name of payer ▶ Part II You must complete this part if you (a) had over $1,500 of taxable interest or ordinary dividends; (b) had a Part III Yes No Ordinary foreign account; or (c) received a distribution from, or were a grantor of, or a transferor to, a foreign trust. ForeignDividends 7 a At any time during 2019, did you have a financial interest in or signature authority over a financial Accounts account (such as a bank account, securities account, or brokerage account) located in a foreign and(See instructions Trusts country? See instructions ...... and the Caution:instructions If for If “Yes,” are you required to file FinCEN Form 114, Report of Foreign Bank and Financial required,Forms 1040 failure and Accounts (FBAR), to report that financial interest or signature authority? See FinCEN Form 114 to1040-SR, file FinCEN line 3b.) and its instructions for filing requirements and exceptions to those requirements . . 5. . . . Form 114 may 4 Note: If you If you are required to file FinCEN Form 114, enter the name of the foreign country where the result in b received a Form financial account is located ▶ substantial1099-DIV or penalties.substitute See 8 During 2019, did you receive a distribution from, or were you the grantor of, or transferor to, a instructions.statement from foreign trust? If “Yes,” you may have to file Form 3520. See instructions ...... a brokerage firm, Forlist thePaperwork firm’s Reduction Act Notice, see your tax return instructions. Cat. No. 17146N Schedule B (Form 1040 or 1040-SR) 2019 name as the payer and enter the ordinary dividends shown Add the amounts on line 5. Enter the total here and on Form 1040 or 1040-SR, on that form. 6 line 3b ...... ▶ 6 Note: If line 6 is over $1,500, you must complete Part III. Part III You must complete this part if you (a) had over $1,500 of taxable interest or ordinary dividends; (b) had a foreign account; or (c) received a distribution from, or were a grantor of, or a transferor to, a foreign trust. Yes No Foreign 7 a At any time during 2019, did you have a financial interest in or signature authority over a financial Accounts account (such as a bank account, securities account, or brokerage account) located in a foreign and Trusts country? See instructions ......

Caution: If If “Yes,” are you required to file FinCEN Form 114, Report of Foreign Bank and Financial required, failure Accounts (FBAR), to report that financial interest or signature authority? See FinCEN Form 114 to file FinCEN and its instructions for filing requirements and exceptions to those requirements ...... Form 114 may If you are required to file FinCEN Form 114, enter the name of the foreign country where the result in b substantial financial account is located ▶ penalties. See 8 During 2019, did you receive a distribution from, or were you the grantor of, or transferor to, a instructions. foreign trust? If “Yes,” you may have to file Form 3520. See instructions ...... For Paperwork Reduction Act Notice, see your tax return instructions. Cat. No. 17146N Schedule B (Form 1040 or 1040-SR) 2019 Frequently asked questions To do so, first calculate your tax under the regular tax system on your Form 1040. Next, calculate your tax under the AMT system using IRS Form 6251, Q. What documents do I need in order to prepare my individual Alternative Minimum Tax—Individuals. Then compare the results of the federal income tax return? two calculations. If the AMT is greater than the regular tax, you pay the difference—as an AMT liability—in addition to your regular tax. A. For a full accounting of taxable and nontaxable income earned on investments in your Vanguard funds, you or your tax preparer will For more information on calculating the AMT, go to irs.gov or speak with need all of your tax forms, including your Form 1099-DIV and year-end a qualified tax professional. Vanguard account statement. If you don’t have these documents, you can download them from the Tax Center when you log on to your account at vanguard.com. Where to go for assistance Check with the IRS Q. Why aren’t all of my fund holdings listed on the 1099-DIV? Refer to IRS Publication 550, Investment Income and Expenses (available A. Your Form 1099-DIV reports dividends and capital gains of $10 or more online at irs.gov), or call the IRS at 800-829-1040. from your taxable mutual fund holdings, as well as tax-exempt interest dividends of $10 or more from Vanguard municipal bond funds and Vanguard Call Vanguard Tax-Managed Balanced Fund Admiral Shares. For distributions of less than $10, refer to your year-end account statement. If you have questions about the information provided in this guide, call the number at the top of your Form 1099-DIV and we’ll be happy to help Q. What are qualified dividends? you. If your tax situation is complex or if you’re uncertain about how to A. Distributions from U.S. corporations and certain foreign corporations interpret a specific tax rule, consult a qualified tax professional. Vanguard are eligible for reduced tax rates as “qualified dividends.” professionals can’t provide tax advice. You can find general tax-preparation data and tools at investor.vanguard.com/taxes/. Mutual funds may distribute qualified dividend income (QDI) to shareholders. Stock and balanced funds are likely to distribute QDI. However, money market and bond funds don’t distribute QDI and therefore aren’t eligible for lower tax rates.

Q. Do I owe alternative minimum tax? A. Many shareholders won’t be subject to the alternative minimum tax (AMT) and therefore won’t be affected by the investments of Vanguard funds in private activity bonds. However, you’re responsible for determining your own AMT liability.