While preparing your taxes, you may have a number of questions. Delaware Funds by Macquarie® provides
answers below to many frequently asked questions, which may help you file your taxes. Please consult a tax advisor
for specific questions related to your tax preparation.
What if I have additional questions?
If you have additional questions that we are unable to answer here, or have questions relating specifically to your
tax situation, please contact your tax advisor.
Account Access
What is the Delaware Funds by Macquarie online Account Access feature?
Account Access is a user ID/password-protected area of the Delaware Funds by Macquarie website that gives you access
to your account information and lets you perform account transactions online. For more information, visit the
Delaware Funds by Macquarie website or call our Shareholder Service Center at 800 523-1918 weekdays between 8:30am
and 6:00pm ET, or register for Account Access
now.
How do I sign up for the Delaware Funds by Macquarie online Account Access feature?
You may register online for Account Access
now.
Who can I contact if I have questions about the Delaware Funds by Macquarie online Account Access feature?
Call the Shareholder Service Center at 800 523-1918. Customer service representatives are available to assist you
weekdays from 8:30am to 6:00pm ET.
What information do I need to sign up for Account Access?
To sign up for Account Access, you will need your Social Security number and an account number from any one of your
Delaware Funds by Macquarie accounts. (You can find your account number on your investment update statement.)
Account Access will ask you to create a user ID and password.
What if I forget my user ID for online Account Access?
The Account Access login page provides direct links to recover forgotten user IDs or passwords. You can also call the Shareholder Service Center at 800 523-1918. Representatives are available to assist you weekdays from 8:30am to 6:00pm ET.
When will my annual account statement arrive?
Your year-end account statement should arrive in mid-January.
Can I use the information on my last account statement of the year to file my tax return?
No. Your account statement reports distributions for financial accounting purposes, which may differ from the
information required for federal tax purposes. For example, certain distributions declared in December to
shareholders of record in such month, but paid in January, are taxable as if they were paid in December.
When will my tax forms arrive?
|
Form
|
Anticipated arrival
|
|
IRS Forms 1099-R, 1099-Q
|
Early February |
|
IRS Form 1099-B, 1099-DIV
|
Mid-February |
|
IRS Form 1042-S
|
Mid-March |
|
IRS Form 5498-ESA (for CESAs)
|
Early May |
|
IRS Form 5498 (for all IRAs)
|
Early June |
Can I access my tax forms online?
Yes, you may access your tax forms by logging on to Account Access.
How can I get a hard-copy duplicate of my tax form?
Your tax forms are available to download in Account Access. However, if you would like a duplicate hard copy of your tax form, you may contact the Shareholder Service Center at 800 523-1918, weekdays from 8:30am to 6:00pm ET.
What if my Social Security number / taxpayer identification number is incorrect on my tax forms?
Please contact our Shareholder Service Center at 800 523-1918, weekdays from 8:30am to 6:00pm ET.
Why didn't I receive a tax form for my IRA transfer of assets?
An IRA transfer to an IRA is a nonreportable event.
How should I report the amounts from the tax forms on my personal income tax form?
Please contact your tax advisor to assist you with this process.
Will I always receive IRS Form 1099-DIV?
IRS Form 1099-DIV is used to report all dividends and capital gains distributions paid to you (cash or reinvested)
by your Delaware Funds by Macquarie funds on non-retirement accounts.
You will not receive IRS Form 1099-DIV if any of the following apply to you:
-
Your total dividends for a fund are less than $10.
-
Your fund did not pay a distribution.
-
Your account is a retirement account.
Why did I receive an IRS Form 1099-DIV for a tax-exempt fund?
Tax-exempt interest income now appears on Form 1099-DIV rather than 1099-INT.
Why have I not received my IRS Form 1099-DIV/B?
IRS Form 1099-DIV/B will not be mailed if your fund has not paid a taxable distribution or if a redemption did not
occur.
If, however, your fund has paid a taxable distribution and you have not received your forms, contact our Shareholder
Service Center at 800 523-1918, weekdays from 8:30am to 6:00pm ET.
The amount of my foreign tax paid on IRS Form 1099-DIV exceeds the $300 maximum threshold ($600 if married filing
jointly) for reporting the credit directly on Form 1040. Where do I start my paperwork?
You will need to complete IRS Form 1116. Enter RIC on line g and report all income in Part I and all foreign tax
passed through in Part II.
For more information on the tax credit and deduction alternative, please consult a tax advisor or see IRS
Publication 514, Foreign Tax Credit for Individuals.
I received an IRS Form 1099-DIV for my non-IRA investments, but not for my IRA. Why is that?
IRS Form 1099-DIV is used to report taxable dividends and capital gains. Capital gains and dividends paid to IRA
accounts are tax-deferred and do not generate reporting.
An IRS Form 1099-R will be mailed to you only when you receive a cash distribution from your IRA(s).
I do not have a cost basis on my IRS Form 1099-B. Why?
Delaware Funds by Macquarie is required to provide cost basis information for shares purchased on or after January 1,
2012 only. See Cost basis
requirements. Additionally, cost basis information may not be provided to you if:
-
You had no sales or exchanges.
-
Your account is a retirement or money market account.
-
Your account was opened prior to 1993.
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Your account was transferred from another account prior to 1999.
-
Your account was established as a result of a fund conversion.
Why did I receive a Form 1099-B for my corporate account?
Beginning in 2012, Delaware Funds by Macquarie is required to report sales and redemptions of securities for S
corporations.
Distributions
How are taxable mutual fund distributions reported?
Mutual fund distributions are reported on IRS Form 1099-DIV. Look for this form to arrive by mid-February.
What is meant by the record date for a distribution?
This is the date that is used to determine who is eligible to receive a distribution issued by the fund.
Shareholders holding shares on the record date are eligible to receive the distribution. Shareholders who purchased
their shares after the record date will not receive the distribution.
What is meant by the ex-date for a distribution?
This is the date that the distribution of dividends or capital gains is deducted from a mutual fund's assets and set
aside for payment to shareholders.
What is meant by the payable date for a distribution?
This is the date when shareholders are paid their distribution, either in cash or by reinvestment in additional mutual fund shares. Those shareholders who reinvest their distributions receive additional shares based on the NAV on the ex‐date.
I earned dividends but did not get a Form 1099-DIV. Why?
IRS Form 1099-DIV will not be mailed if your fund has not paid any taxable distributions, if your total dividends
for a fund are less than $10, or if distributions were made to you from a retirement account.
If you have any questions about whether your dividends are taxable, contact our Shareholder Service Center at 800
523-1918, weekdays from 8:30am to 6:00pm ET.
What is qualified dividend income?
When the fund receives dividends from domestic corporations and qualified foreign corporations, they are considered
qualified dividend income.
Qualified dividend income is taxed at rates of 0%, 15%, or 20% depending on your taxable income.
Please refer to the IRS Form 1040 instructions for more details.
What is a capital surplus/return of capital?
A return of capital dividend (for tax purposes) is a distribution in excess of tax basis of earnings and profits.
These return of capital distributions generally are not taxed, and reduce your original cost basis. If return of
capital distributions reduce your cost basis to zero, any excess will be viewed as capital gain distributions that
are taxable.
Capital gains
What is a capital gain?
Profits resulting from the sale of securities are considered capital gains. Investors may realize capital gains when
they sell shares, the fund sells securities, or when both occur.
If the fund sells securities and realizes a capital gain, these gains are passed to the shareholders as
distributions. When you sell or exchange mutual fund shares, you may realize a short- or long-term taxable capital
gain or a capital loss. IRS Forms 1099-DIV and 1099-B are used to report these amounts.
Remember that under federal tax law, shares held for more than one year receive long-term capital gain/loss status.
Shares that are held for one year or less are treated as a short-term capital gain or loss.
What is considered a long/short-term capital gain?
Short-term capital gains occur when there are gains from the sale of securities that are held for one year or less.
For federal tax purposes, these gains are taxed as ordinary income. Short-term gains are taxed as ordinary income at
your marginal tax rate ranging from 10% to 37% under federal income tax rules. An additional 3.8% Medicare tax may
be imposed on certain net investment income (including ordinary dividends and capital gain distributions received
from a mutual fund and net gains from redemptions or other taxable dispositions of mutual fund shares) to the extent
the recipient’s gross income exceeds a threshold amount.
Long-term capital gains occur when there are gains from the sale of securities that are held for more than 12 months.
Long-term capital gains from sales will be taxed at 0%, 15%, or 20% for taxable accounts. An additional 3.8%
Medicare tax may be imposed on certain net investment income (including ordinary dividends and capital gain
distributions received from a mutual fund and net gains from redemptions or other taxable dispositions of mutual
fund shares) to the extent the recipient’s gross income exceeds a threshold amount.
Long-term capital gains paid from a REIT attributable to unrecaptured Section 1250 gain is taxed at 25%.
What is the difference between an unrealized capital gain/loss and a realized capital gain/loss?
Unrealized capital gains (or losses) on investments are the appreciation (or depreciation) in value of securities that are still held by the fund but have not yet been sold. The appreciation (gain) is reflected daily as part of a fund’s net asset value (NAV) but are not required to be distributed until the security is sold. Once the security is sold, the fund realizes the gain (realized gains) and must pay a distribution unless the gain is offset by realized capital losses.
Does a mutual fund’s distribution affect its total return?
No. Distributions do not impact total return. A mutual fund’s total return calculation includes the assumption of reinvestment of all distributions back into the mutual fund. As such, the total return calculation equals the same result immediately after a distribution as it did immediately prior to a distribution.
Why does a fund’s share price drop when a capital gain distribution is paid?
A fund’s share price, or NAV, will increase when profits, whether realized or unrealized, are earned. When a fund pays out realized gains in a distribution, the fund’s NAV will decrease by the same amount of the distribution on the ex-dividend date.
For example, if a shareholder owns 100 shares of ABC Mutual Fund valued at $10.00/share and the fund pays a dividend of
$1.00/share, the NAV for ABC Mutual Fund would drop to $9.00/share on the ex-dividend date. In this example, the account value for a shareholder who opted for a cash dividend would go from $1,000 to $900 (1,000 x $10.00 versus 1,000 x $9.00). This reduction is offset by the $100 the shareholder would receive as a cash payout. For shareholders reinvesting dividends, the additional 11.111 shares received offsets the drop in NAV and the value of the account remains $1,000 (111.111 shares x $9.00).
Market activity may also impact the fund’s NAV, so the total change in NAV may be more or less than the distribution.
Why do I have a capital gain distribution when my fund value is down?
The fund may have realized a capital gain from selling securities within the portfolio of the fund, which must be
distributed to the shareholders even though the overall value of the fund may be down.
Why did my mutual fund not pay a capital gain?
The fund may have realized capital losses in the current or prior year that offset all of its realized capital gains. A capital loss results when a mutual fund sells a security at a price lower than the purchase price. Mutual funds may or may not pay a capital gain distribution in any given year.
What is a tax loss carryforward?
A tax loss carryforward allows capital losses to be carried over from one year to another due to a special tax rule. In other words, capital losses realized in the current tax year can be used to offset gains or profits in a future tax year.
Is there any benefit to reinvesting distributions?
Shareholders who reinvest their dividends purchase additional shares at a lower price, leaving the total value of the account unaffected by the distribution. The shareholder’s cost basis is increased by the amount of the reinvested distribution. This does not impact the total return of a fund.
Do I still pay taxes on capital gains even if I have them reinvested?
Capital gains in shares held in an IRA, 401(k), or any other tax-deferred investment are not taxed. All other capital gains distributions are taxable, even when reinvested.
How does a fund’s fiscal year-end affect year-end distributions?
Distributions are generally based on the capital gains the fund realizes from November 1 of the previous year to October 31 of the current year (excise period). If this annual period does not correspond with the fund’s fiscal year, capital distributions will be the greater of the net capital gains realized during the fiscal year end period or the excise period.
How will I know my actual capital gain amount?
Final distributions will be posted on each Fund’s webpage once they are paid. Actual distributions will appear on shareholders’ year-end statements and Forms 1099-DIV, which will be mailed by the first quarter of the following tax year.
Does Macquarie try to limit capital gain distributions?
Capital gain distributions incurred by fund shareholders are an important consideration in Macquarie’s commitment to delivering long-term asset management solutions. Our priority remains meeting our funds’ investment objectives and risk standards. While we remain mindful of taxes shareholders may pay on capital gains, buy-and-sell decisions are a residual of a fund’s security selection process.
Cost basis
How do I determine the cost basis on the shares I sold?
Cost basis generally is the price you paid for your shares, including any sales charges.
Your cost basis may not be the same for all shares since the price may have varied if you made purchases at
different times. Shares you acquired through reinvested dividends or capital gains are also considered separate
purchases and should be included in your calculations.
For a detailed explanation of cost basis reporting, see Cost basis requirements.
What method does Delaware Funds by Macquarie use to calculate cost basis?
Delaware Funds by Macquarie uses the average cost method by default. However, you should consult your tax advisor to
determine if the average cost method is the most suitable for you. See Cost basis requirements.
IRAs
I received an IRS Form 1099-DIV for my non-IRA investments, but not for my IRA. Why is that?
The IRS Form 1099-DIV is used to report taxable dividends and capital gains. Capital gains and dividends paid to IRA
accounts are tax-deferred, and they do not generate reporting.
An IRS Form 1099-R will be mailed to you only when you receive a cash distribution from your IRA(s).
Why didn't I receive a tax form for my IRA transfer of assets?
An IRA transfer of assets to an IRA is a nonreportable event.
Deductions
How do I take a tax deduction for foreign taxes paid?
List the amount of foreign taxes paid reported on your IRS Form 1099-DIV with any other deductions on line 6 of IRS
Form 1040, Schedule A.
If you received more than one IRS Form 1099-DIV, combine the foreign tax paid and enter the total on Schedule A.
Please note that you must itemize in order to take a foreign tax deduction.
A foreign tax deduction is not available if you use the standard deduction.
Can I take a foreign tax credit or deduction if my account is a tax-sheltered plan?
No. Because earnings from a tax-qualified plan are not taxable until withdrawn, any foreign taxes paid within a
tax-sheltered plan are not eligible for a tax credit or deduction.