Will I need to pay taxes if I buy or sell stocks? Where can I find my tax documents or statements?

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Who will need to file taxes related to investments made through Greenlight?

All Greenlight investing portfolios, child and parent, are brokerage accounts held under the Primary Accountholder’s name. This Primary Accountholder is therefore the record owner of all securities purchased  in all accounts and will be the person responsible for filing any associated taxes.

What types of taxes would result from selling my investments? 

You should always consult with a tax professional about your specific situation, but in general there are two main types of taxes if you sell your stocks for a gain, which means selling them for more than the price you purchased them.

  • Long term capital gains: This happens when you sell your securities for a profit after you’ve held them for at least 1 year. Under U.S. tax law, long term capital gains receive preferential tax treatment and an individual’s long term capital gains are taxed at a rate that is typically lower than an individual’s ordinary income tax rate. This tax policy encourages individuals who buy securities to hold them for at least one year before selling them.  
  • Short term capital gains: This happens when you sell your securities for a profit after you’ve held them for less than a year. Under U.S. tax law, an individual’s short term capital gains are taxed at a rate that is equal to their ordinary income tax rate. 

Do I qualify for a Form 1099-B?

If you sold a stock or ETF during the previous tax year, you will likely qualify to receive a 1099-B.

Where can I locate my tax documents (Form 1099-B)?

Note: Tax documents for the year 2021 will be made available by our broker-dealer DriveWealth on Feb. 15th 2022.

If you are an active “Greenlight Max” or “Greenlight + Invest” customer:

Trade confirmations, tax documents, and statements are available within your app Settings (app version 4.26 and later) and at the bottom of your Invest dashboard within the Greenlight app (all app versions).

To access on app versions 4.26 or later, Primary Accountholders must:

1. Visit their "Settings" by tapping the gear icon on the home dashboard and

2. Scroll down to "Profile & Account" and tap "Tax documents". This will take you to the Tax documents screen that shows each profile on your account. Tap through each profile to see if you have tax documents.

3. If you do not see the "Tax documents" section within your Settings dashboard, you may instead need to tp on "Account" within your "Settings", then tap "Tax documents."

To access on app versions earlier than 4.26, Primary Accountholders must:

  1. Tap the “Investing” tile on within your “Investing for Parents” module on the home dashboard and/or within the dashboard’s of each of your children with an Invest profile.
  2. Scroll down to the bottom of your investing dashboard under the “For Your Records” section.
  3. Tap “Tax documents.”
  4. Note that there will be a separate 1099 for every Greenlight Invest Profile that made at least one sell order during the year 2021.
  5. Tax documents for the year 2021 will be available starting February 15, 2022.

If you are an active “Greenlight” ($4.99/mo) customer or a former Greenlight customer that previously had an investing profile with Greenlight:

On or after February 15, 2022, your 2021 tax documents must be accessed through the Tax Center of Greenlight’s broker-dealer, DriveWealth. 

To access your tax documents:

The Primary Accountholder must follow the following steps to access their tax documents through DriveWealth: 

  1. Visit the “Tax Center” of Greenlight’s broker-dealer, DriveWealth, here.
  2. Beneath the “Submit” button in the Tax Center, click “Find your Account Number here.”
  3. Type in the email address associated with your Greenlight account and click “Email me.”
  4. You’ll receive an email from DriveWealth which will include a .csv file containing your DriveWealth account numbers. There will be an account number for each of your Greenlight Invest accounts, but you only need to use one of these numbers to access all of your tax documents.
  5. Once you have your account number(s), visit the Drivewealth Tax Center.
  6. Input one of your account numbers and follow the instructions on the form and click “Submit.”
  7. After you’ve received your one-time password, you can use this to log into your DriveWealth account and access all of your tax documents.
  8. There is a drop down in the top left corner of your tax center, which you can use to see and download multiple tax documents if you have more than one. 

Note: This article is not intended to serve as tax or legal advice. We encourage you to consult with your legal and/or tax advisors for advice specific to your individual legal and/or tax situation.

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