Sealaska Shareholder 1099 Tax Forms Now Available
- View and download 1099 form on MySealaska.com Monday, Jan. 24
- Printed 1099 tax forms will be mailed on or before Jan. 26.
Q: Why am I getting a 1099? I thought my distributions were tax free now that we have the Sealaska Settlement Trust?
A: The Sealaska Settlement Trust was created by a vote of shareholders in June of 2021. Dividend payments that occurred in 2021 prior to the creation of the Sealaska Settlement Trust (for example, the spring distribution in April 2021) are still subject to federal income tax.
- Distributions from Sealaska operations and the Marjorie V. Young (MVY) investment fund are tax free beginning with the fall 2021 distribution, which was the first to pass through the Sealaska Settlement Trust.
- ANSCA Section 7(j) payments to shareholders (Class B, C) have always been and will remain taxable income. Urban and At-Large shareholders (class B, C) will receive 1099 tax form for 7(j) payments.
- For more information on the Sealaska Settlement Trust, click here.
How to Find 1099 Form On MySealaska.com
- Login to MySealaska beginning Monday, Jan. 24
- Click “About Me”
- View or print form
How to Read Your IRS Form 1099
Sealaska’s semi-annual dividend is funded by three components: ANCSA Section 7(j), income from Sealaska’s business operations, and earnings from the Marjorie V. Young Shareholder Permanent Fund.
Every shareholder who received $10 or more in dividend payments from Sealaska should receive a 1099-DIV form.
Box 1a includes the total taxable dividends paid to shareholders. All shareholders will see the Spring 2021 distribution in this box, and for those who are eligible, it will also include the Fall 2021 7(j) distribution.
Box 1b represents that portion of Box 1a that is “qualified” – which means that this amount is eligible to be taxed at the lower capital gains tax rate. Only dividends from Sealaska’s business operations and the MVY Shareholder Permanent Fund may be considered qualified.
Box 3 is the total non-dividend distributions paid to shareholders. Included in this box is the one-time Elders payment made to shareholders who reached 65 during 2021.
Box 4 is the federal income tax withheld for shareholders. If shareholders elected to have Sealaska withhold federal taxes from their dividend payment, it will be reflected here.
Shareholders who received non-dividend payments such as prizes or give aways will receive a 1099-MISC.
The amount that they received will be included in Box 3 of the 1099-MISC.
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