Welcome to the Tax Center — The Place for Tax Questions and Answers
To help you prepare your taxes, we've provided a variety of resources and articles to answer your questions.
Articles
Browse our collection of articles about important tax-planning subjects.
A little planning at tax time may make a big difference in your retirement.
Legislation
Learn about some of the key legislative provisions that may affect your tax situation.
Tax Related Questions
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 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 2013?
December 31, 2013.
- When is the deadline to perform a recharacterization of 2013 contributions?
An automatic extension is allowed for shareowners wishing to recharacterize their contributions. The tax filing extension is October 15, 2014.
- What happens if I contribute too much to my IRA?
The total amount that can be contributed to IRAs in one year is called the maximum allowable contribution. It is either $5,500 ($6,500 if you are 50 or older) or 100 percent of your earned income, whichever is less. If, in one year, you contribute more than what is allowed, the difference between the amount contributed and the maximum allowable contribution may be subject to a six percent tax penalty. If you contribute too much to your IRA, you can correct this by removing some of your contributions and related earnings to avoid the tax penalty. These corrections must be made by the tax return due date, which is generally April 15.
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 your 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 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.
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. 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 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.
Prepare Your Taxes
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 tax information booklets will be mailed mid- to late- February.
These tables show our retail funds and may be used in preparing your income tax returns.
These tables show our associate funds and may be used in preparing your income tax returns.
If you maintain a State Farm Mutual Funds account, you may receive one or more forms, depending on your account activity.
Get information specific to dividends, capital gains and foreign taxes.
Get information on how to request a duplicate year-end statement or tax form.
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Risk Disclosures
Investing involves risk, including potential for loss.
An investor should consider, before investing, whether the investor's or designated beneficiary's home state offers any state tax or other benefits that are only available for investments in such state's qualified tuition program.
Before investing in a 529 plan, consider the plans investment objectives, risks, charges, and expenses. Contact the plan issuer for an official statement containing this and other information. Read it carefully.
Mutual Funds Disclosure
General
Automatic investment plans do not assure a profit or protect against loss.
Neither State Farm nor its agents provide investment, tax, or legal assistance.
It is not possible to invest directly in an index.
State Farm VP Management Corp. is a separate entity from those State Farm entities which provide banking and insurance products.
Each State Farm LifePath Fund invests all of its assets in a corresponding LifePath Master Portfolio under a master/feeder structure. BlackRock Fund Advisors ("BFA") is the investment advisor to the LifePath Master Portfolio. State Farm Investment Management Corp. (SFIMC) is the investment advisor to the State Farm LifePath Funds. State Farm VP Management Corp. (SFVPMC) is the distributor of the State Farm LifePath Funds. Neither SFIMC nor SFVPMC are affiliated with BFA or its affiliates.
BlackRock Investors Services (BIS) provides marketing support to the LifePath Master Portfolios. BFA and BIS are wholly owned subsidiaries of BlackRock Institutional Trust Company, N.A. ("BTC"). Neither BTC nor its affiliates are affiliated with SFIMC or SFVPMC. BTC is located at 400 Howard Street, San Francisco, CA 94105.
BlackRock Fund Advisors ("BFA") is the investment sub-advisor to the S&P® 500 Index Fund.
Ascensus provides recordkeeping and administrative services for retail 401(k) retirement plans offered by State Farm Investment Management Corp.
Net Asset Value (NAV) is calculated by adding all of the assets of a Fund, subtracting the Fund's liabilities, then dividing by the number of outstanding shares.
Indices
The Russell 2000® Index tracks the common stock performance of the 2,000 smallest U.S. companies in the Russell 3000 Index.
The Russell 2500 Index measures the performance of the 2,500 smallest securities in the Russell 3000 Index.
The Russell 1000 Index is a market-capitalization weighted index that tracks the largest 1,000 companies in the Russell 3000 Index.
The Russell Midcap Index measures the performance of the mid-cap segment of the U.S. equity market and is a subset of the Russell 1000 Index.
The Dow Jones Industrial Average is an unmanaged average of 30 actively traded stocks.
The NASDAQ Composite is an unmanaged market capitalization weighted index that is designed to represent the performance of the National Market System.
The S&P 500® Index tracks the common stock performance of 500 large U.S. companies.
The Barclays 1-5 Year U.S. Treasury Index measures the performance of short-term U.S. Treasury Securities maturing within one to five years.
The Barclays U.S. Aggregate Bond Index represents debt securities in the U.S. investment grade fixed rate taxable bond market.
The Barclays Municipal Bond Index is an unmanaged index representative of the tax-exempt bond market.
The Barclays High-Yield Bond Index covers the U.S. dollar-denominated, non-investment grade, fixed-rate, taxable corporate bond market.
The Barclays U.S. TIPS Index is an unmanaged index composed of inflation protected securities issued by the U.S. Treasury.
The Citigroup 3-Month Treasury Bill Index is an unmanaged index of three-month Treasury bills.
The FTSE EPRA/NAREIT Developed Real Estate ex-U.S. Index is designed to measure the stock performance of companies engaged in specific real estate activities of the real estate markets outside of the United States.
The FTSE EPRA/NAREIT Developed Real Estate Index is designed to measure the stock performance of companies engaged in specific real estate activities of the North American, European, and Asian real estate markets.
The Morgan Stanley Capital International Europe, Australasia and Far East Free (EAFE® Free) Index currently measures the performance of stock markets of Europe, Australia, New Zealand, and the Far East.
The MSCI All Country World Index (ACWI) is a free float-adjusted market capitalization weighted index that is designed to measure the equity market performance of developed and emerging markets.
The MSCI All Country World Index (ex-U.S.) (MSCI ACWI ex-U.S. Index) is a free float-adjusted market capitalization index that is designed to measure equity market performance in global developed and emerging markets, excluding the United States.
The MSCI Emerging Markets Index is a float-adjusted market capitalization index designed to measure equity market performance in global emerging markets.
The Credit Suisse High Yield Index is designed to mirror the investible universe of the U.S. dollar-denominated high yield debt market.
The New York Stock Exchange is considered the largest equities-based exchange in the world based on total market capitalization of its listed securities.
The Nikkei 225 Index is a price-weighted index comprised of Japan's top 225 blue–chip companies on the Tokyo Stock Exchange.
The Blended Benchmark for the Equity and Bond Fund is a combination of 60% of the S&P 500 Index and 40% of the Barclays U.S. Aggregate Bond Index, rebalanced monthly.
The Blended Benchmark for the LifePath Funds is a combination of the holdings in the Barclays U.S. Aggregate Bond Index, Russell 1000 Index, Russell 2000 Index, MSCI ACWI ex-U.S. IMI Index, Dow Jones-UBS Commodity Index, FTSE EPRA/NAREIT Developed Real Estate Index and Barclays U.S. TIPS Index. The weightings of the indices are adjusted quarterly to reflect the funds' changing asset allocations over time.
Trademarks
iShares, LifePath and LifePath followed by 2020, 2030, 2040 and 2050 are all registered trademarks of BlackRock Institutional Trust Company, N.A.
"S&P 500®" is a trademark of The McGraw-Hill Companies, Inc. and has been licensed for use by the State Farm Mutual Fund Trust. The State Farm S&P 500 Index Fund (the "Fund") is not sponsored, endorsed, sold or promoted by Standard & Poor's, and Standard & Poor's makes no representation regarding the advisability of investing in the Fund.
Russell Investment Group ("Russell") is the source and owner of the trademarks, service marks and copyrights related to the Russell 2000® Index. Russell® is a trademark of Russell. The State Farm Small Cap Index Fund (the "Fund") is not sponsored, endorsed, sold or promoted by, nor in any way affiliated with Russell. Russell is not responsible for and has not reviewed the Fund nor any associated literature or publications and Russell makes no representation or warranty, express or implied, as to their accuracy, or completeness, or otherwise.
The EAFE® Free Index is a trademark, service mark and the exclusive property of Morgan Stanley Capital International, Inc. ("MSCI") and its affiliates and has been licensed for use by the State Farm Mutual Fund Trust (the "Trust"). The State Farm International Index Fund (the "Fund"), based on the EAFE® Free Index, has not been passed on by MSCI as to its legality or suitability, and is not issued, sponsored, endorsed, sold or promoted by MSCI. MSCI makes no warranties and bears no liability with respect to the Fund. MSCI has no responsibility for and does not participate in the management of the Fund assets or sale of the Fund shares. The Trust's Statement of Additional Information contains a more detailed description of the limited relationship MSCI has with the Trust and the Fund.
Non-US Residents
Each of the investment products and services referred to on the State Farm Mutual Funds web site is intended to be made available to customers or prospective customers residing in the United States. The customer's U.S. permanent residence address must be a street address. This web site shall not be considered a solicitation or offering for any investment product or service to any person in any jurisdiction where such solicitation or offer would be unlawful.
Business Continuity Plan
State Farm VP Management Corp. has developed a Business Continuity Plan on how we will respond to events that significantly disrupt our business. Since the timing and impact of disasters and disruptions is unpredictable, we will have to be flexible in responding to actual events as they occur. With that in mind, download this information on our business continuity plan [PDF-19.5KB].
AP2014/01/0222
Not FDIC Insured
- No Bank Guarantee
- May Lose Value