Tax Center

To help you prepare your taxes, review the information below specific to your State Farm Mutual Funds®.

• Expected Tax Form Mailing Dates

  Here you’ll find the scheduled mailing dates for the different tax forms. Our 2011 tax information booklets will be mailed mid- to late- February.

• 2011 Retail Tax Tables

  These tables reference our retail funds and may be used in preparing your 2011 income tax returns.

• 2011 Associate Tax Tables

  These tables reference our associate funds and may be used in preparing your 2011 income tax returns.

• Summary Of Tax Forms

  If you maintain a State Farm Mutual Funds account, you may receive one or more forms, depending on your account activity throughout 2011.

• Dividends And Capital Gains

  Obtain information specific to dividends, capital gains, and foreign taxes.

• Record Keeping And Requesting Duplicate Statements

  Get information on how to request a duplicate year-end statement or tax form.

Find answers to some of the most commonly asked tax questions. Click on a question below to read the answer.

General

• When will I receive my tax forms?

  1099-B, 1099-DIV, 1099-R, 1099-Q, 1099-SA, and 1099-INT tax forms are mailed by the end of January. Form 5498-ESA is mailed in April. Forms 5498 and 5498-SA are mailed in May.

• Why did I receive a 1099 form?

  • IRS Form 1099-R reports distributions from a 401(k) or a traditional, Roth, SEP, or SIMPLE IRA. You will only receive this form if there was a distribution.
  • IRS Form 1099-Q reports distributions from a qualified tuition program under Section 529, or a Coverdell ESA.
  • IRS Form 1099-SA reports distributions from an Archer MSA.
  • IRS Form 1099-DIV reports taxable dividends and capital gains of $10 or more paid to the shareowner, whether paid in cash or reinvested.
  • IRS Form 1099-B reports distributions from a non-tax qualified account.
  • IRS Form 1099-INT reports tax exempt interest dividends and private activity bond interest paid by the Tax Advantaged Bond Fund and Municipal Bond Fund.

• What is a capital gains distribution?

  Capital gains distributions are payments (usually annually) to mutual fund shareholders of long-term capital gains the fund has realized on the sale of portfolio securities.

• How do I request a duplicate year-end investor statement or tax form?

  To request a duplicate year-end record or tax form to be mailed to your address of record, please call us at 1-800-447-4930. It will take a minimum of five days to receive your duplicate record.

IRAs

• When is the deadline to do a conversion for 2012?

  December 31^st, 2012.

• When is the deadline to perform a recharacterization of 2011 contributions?

  An automatic extension is allowed for shareowners wishing to recharacterize their contributions. The tax filing extension is Oct. 15^th, 2012.

• What happens if I contribute too much to my IRA?

  A maximum allowable contribution is the aggregate amount that can be contributed to IRAs in a year and for 2011 is the lesser of $5,000 ($6,000 if you are 50 or older) or 100 percent of earned income. If someone contributes more than the maximum allowable amount, the difference is considered to be an “excess contribution” and may be subject to a 6 percent tax penalty depending on how the excess is handled. Such removed contribution will not incur the 6 percent excess-contribution tax penalty. Any current-year contribution may be removed and treated as an excess if the contribution and related earnings are removed by the tax return due date (including extensions).

• Why did I receive my form 5498 in May? I have already filed my taxes. Now what do I do?

  IRS Form 5498 is for recordkeeping purposes only and is not required to be sent to the IRS with an individual’s income tax return. A record of the information on the 5498 is sent to the IRS by State Farm®.

  The 5498 reports contributions made to a tax-qualified retirement accounts including, rollovers, conversion contributions, and recharacterization contributions.

  Since contributions can be made up until the tax filing date, this form is not sent to the shareowner until the end of May, as required by law.

  Non-tax-qualified accounts do not receive a 5498.

• Why did I not receive a 1099-DIV for my IRA?

  A 1099-DIV is not issued for an IRA since the account is a tax-qualified vehicle.

Taxable Accounts

• If I reinvest my dividend and capital gain distributions, do I still have to pay taxes on these distributions during the current tax year?

  Yes. Dividend and capital gain distributions are taxable if the distributions are taken in cash or reinvested in additional fund shares in a non-tax-qualified account.

• Why is an exchange taxable if I didn’t receive any cash proceeds from the transaction?

  When an exchange between funds is performed in a non-tax-qualified account, shares are redeemed from one fund and the proceeds are used to purchase shares of another fund. For tax purposes, the IRS treats the redemption side of an exchange as though it was a cash redemption. Thus, the shareowner is subject to tax on any resulting capital gain.

• What if I perform a redemption or exchange that result in a capital loss?

  Any capital gains you incur may be offset by capital losses you incur from investment activities. Your net capital gain or loss will be calculated on Schedule D of your federal income tax return. The amount of your capital gain or loss will be determined by the cost basis of the shares you sold. Please seek competent tax advice for the calculation of your cost basis and the amount of capital gains and losses.

• Where can I find my cost basis information?

  If available, the cost basis and gain (loss) Information can be found on your Form 1099-B. The average cost basis calculated on your Form 1099-B is only applicable:

  • If you have used the single-category average cost basis method for calculating your cost basis on previous redemptions or exchanges from the same fund; or
  • If this is your first redemption or exchange, and you elect to use the single-category average cost basis method.

Articles

Browse our collection of articles about important tax-planning subjects.

• Overview Of Mutual Fund Taxation

  Taxes are an important consideration for mutual fund investing. Learn about the different ways a mutual fund can generate income for you if you hold shares in a non-tax-qualified account.

• Cost Basis Reporting Changes New

  Cost basis reporting regulations have changed requiring mutual funds to report cost basis information to shareholders and the IRS. Read more to learn about cost basis reporting and find out how these changes impact you.

• Directly Deposit Your Tax Refund New

  Did you know that you can directly deposit your tax refund into one or more of your State Farm Mutual Funds® accounts? Follow these step-by-step instructions when you file your taxes.

• Use Your Refund Wisely

  There are so many ways you could spend your refund, but there may be better alternatives to consider.

• IRA Learning Center

  Find contribution limits for your IRA and maximize your tax savings.

Legislation

Learn about some of the key legislative provisions that may affect your tax situation.

• IRS Disaster Relief
• Pension Protection Act Of 2006
• Worker, Retiree, And Employee Recovery Act Of 2008