Can a mutual fund have 1099-INT form
In my investment account, there are holdings
in a mutual fund and
in a money market.
The 1099-DIV form of my account has the following nonzero items:
Total ordinary dividends (qualified dividends included),
Total capital gain distributions,
Foreign tax paid.
My investment account also has a 1099-INT form with nonzero amounts in
Interest Income, and
Tax-Exempt Interest.
After reading my monthly statements, I found the nonzero items in 1099-INT belong to the money market, instead of the mutual fund.
I wonder, in general, if a mutual fund can have 1099-INT form, besides 1099-DIV?
(2)2 Comments
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Your "money market" is cash or a "sweep account"
that your broker is holding for you and on which the broker is paying you interest. The mutual fund is paying you dividends, not interest, even if it is a money-market mutual fund (often bearing a name such as
Prime Reserve Fund) or bond mutual fund that is collecting
interest on its investments and passing them on to you.
I believe money market "funds" (ie a mutual fund) would pay dividends, and you would get a 1099-DIV. A money market "account" however is probably actually a bank account, and you would get a 1099-INT for that. It depends how the broker has set it up. I have one of each with different brokers. If your "money market" statements mention anything about FDIC coverage, it is likely an "account" (ie a bank account) and will pay interest, not dividends.
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