Fidelity Investments: What's Their Federal Tax Id Number?

The Employer Identification Number (EIN), also known as the Federal Employer Identification Number (FEIN), is a unique nine-digit number assigned to business entities operating in the United States for identification and tax reporting purposes. All corporations operating or incorporated in the US must obtain an EIN in order to file federal income tax returns and to open corporate bank accounts. So, what is the FEIN for Fidelity Investments?

Fidelity's role in tax filing and preparation

Fidelity provides a Tax Information Center, which offers information about tax forms, fund-specific tax data, and resources to help you prepare your tax returns. This includes tax rates and data, such as capital gains estimates, corporate actions, and municipal and federal tax rules for Fidelity funds.

Fidelity also provides tax forms from previous years, which are available to view and download at any time. These include tax forms for distributions from pension plans, annuities, retirement and profit-sharing plans, IRAs, Keoghs, and insurance contracts.

Fidelity also offers a Stock Plan Resource Center, which contains tax filing guides and tips on how to avoid overpaying. They also provide a tax-loss harvesting tool, which allows you to identify losses and sell positions that can help save on taxes.

Fidelity does not provide legal or tax advice, and the information provided is for educational and informational purposes only. They recommend that customers consult an attorney, tax professional, or other advisors regarding their specific legal or tax situation.

The importance of an EIN for Fidelity Investments

An EIN, or Employer Identification Number, is a unique nine-digit number assigned by the IRS to business entities operating in the United States for identification and tax-reporting purposes. It is also known as the Federal Employer Identification Number (FEIN) or Federal Tax Identification Number (FTIN). An EIN is necessary for businesses to pay employees and file business tax returns.

Financial institutions such as banks and brokerage houses will not open corporate accounts without an EIN, as all corporations must file at least a federal income tax return. This means that a corporation operating in the US will generally need to obtain an EIN.

Fidelity Investments is a financial services company that offers investment products and services to its clients. As a financial institution, Fidelity must comply with regulatory requirements, including those related to taxation. Therefore, it is essential for Fidelity Investments to have an EIN to conduct its business operations effectively and compliantly.

The EIN allows Fidelity to identify itself to the IRS for tax purposes and facilitates various aspects of its business, such as opening corporate accounts, hiring employees, and filing tax returns. Without an EIN, Fidelity would face significant challenges in conducting its day-to-day operations and serving its clients.

Moreover, the EIN enables Fidelity to provide tax-related services to its clients. For example, Fidelity offers tax forms, fund-specific tax data, and resources to help clients prepare their tax returns. Having an EIN ensures that Fidelity can effectively manage its tax obligations and assist its clients in navigating their tax responsibilities.

The services Fidelity offers

Fidelity Investments offers a range of financial services to help individuals save for college, a new home, or retirement. Here are some of the key services they provide:

Investment Options

Fidelity offers various investment options, including stocks, bonds, mutual funds, exchange-traded funds (ETFs), and options trading. They provide resources and tools to help individuals make educated investment decisions with confidence. Fidelity also offers commission-free trading for US stocks and ETFs, fractional share investing, and access to industry-leading research and analysis.

Retirement Planning

Fidelity assists individuals in planning for retirement, offering accounts such as the Fidelity Roth IRA, which provides flexibility in saving for retirement while balancing long-term goals with short-term needs. They also allow individuals to transfer retirement funds from former 401(k) and workplace accounts into a single account without taxes or penalties.

Brokerage Services

Fidelity provides brokerage services, allowing individuals to choose and manage their own investments. They offer a full-featured brokerage account with $0 commission trades, powerful research tools, and advanced trading platforms.

Wealth Management

Fidelity Wealth Management provides customized planning and investment management services, catering to an individual's full financial picture. This service is led by a dedicated Fidelity advisor, supported by a team of specialists, to help grow and protect wealth.

Advisory Services

Fidelity's investment advisory services offer access to a team of advisors by phone or video. These advisors partner with individuals to keep their investment strategies aligned with their financial goals through portfolio management, annual reviews, and tax-smart investing techniques.

Digital Investing

Fidelity offers digital investing services, providing professional and affordable money management with automatic rebalancing. This service is accessible with a minimum investment of $101, and individuals also gain access to coaching when their balance reaches $25,000.

The types of tax forms available

The Employer Identification Number (EIN), also known as the Federal Employer Identification Number (FEIN) or the Federal Tax Identification Number (FTIN), is a unique nine-digit number assigned to business entities operating in the United States for identification and tax reporting purposes.

Now, here's an overview of the types of tax forms available:

There are hundreds of IRS forms, and they are all used to report financial transactions, calculate taxes, and prepare tax returns. The specific forms you need to file depend on your individual circumstances, such as your sources of income, deductions, and credits. Here are some of the most common IRS tax forms:

• Form 1040: This is the standard federal income tax form used to report income, claim deductions and credits, and calculate the tax refund or bill. For seniors, there is a variation called Form 1040-SR, which has a larger font and an embedded standard deduction table.
• Schedule A: This schedule is used to itemize deductions, such as property taxes, charitable contributions, mortgage interest, state taxes, and medical expenses.
• Schedule B: This form is used to report taxable interest and dividends over $1,500 received during the year.
• Schedule C: If you are a freelancer, small business owner, or have side gigs, you will use Schedule C to report profits and losses and deduct business-related expenses.
• Schedule D: Schedule D is used to report capital gains and losses from the trade of stocks, bonds, or other instruments.
• Form W-2: Employers send this form to employees, detailing income, contributions to employer-sponsored retirement plans, and withheld taxes.
• Form 1098: This form is related to mortgage or student loan interest paid during the year, which may be deductible.
• Form 1099: This is a series of forms used to report income from sources other than an employer, such as dividends, distributions, capital gains, interest income, and miscellaneous income like royalties or rents.
• Form 1040-X: This form is used to amend or fix a tax return if you realize any errors after filing.
• Form 4868: If you need more time to file your taxes, this form is used to request an extension from the IRS.

The tax implications of various investments

When considering the tax implications of your investments, it's important to remember that federal and state laws and regulations are complex and subject to change. Therefore, it is always recommended to consult with a tax professional for specific advice regarding your situation. With that said, here is some general information about the tax implications of various investments.

Mutual Funds

Mutual funds distribute earnings from interest, dividends, and capital gains annually. Shareholders may incur a tax liability if they own the fund on the date of record for the distribution in a taxable account, regardless of how long they have held the fund. Mutual fund investors considering buying or selling a fund may want to consider the date of the distribution.

If you hold mutual funds in retirement or college savings accounts, you generally pay taxes only when earnings or pre-tax contributions are withdrawn. However, if you hold shares in a taxable account, you are required to pay taxes on mutual fund distributions, whether paid out in cash or reinvested in additional shares.

For federal tax purposes, ordinary income is typically taxed at higher rates than qualified dividends and long-term capital gains. Long-term capital gains, which are gains from the sale of shares held for more than a year, are subject to capital gains rates, usually lower than ordinary income tax rates. Short-term capital gains, or gains from the sale of shares held for a year or less, may be treated as ordinary dividends and taxed at higher rates.

Tax-Exempt Securities

The tax treatment for different types of investments varies. For example, municipal bonds are typically exempt from federal taxes and may receive preferential state tax treatment. On the other hand, real estate investment trusts and bond interest are taxed as ordinary income.

Retirement Accounts

Retirement savings accounts, such as 401(k)s, 403(b)s, and IRAs, offer the ability to defer taxes. Additionally, health savings accounts (HSAs) may provide a triple tax benefit: tax-deductible contributions, tax-deferred growth, and tax-free withdrawals for qualified medical expenses.

Employer Stock Plans

Participation in your employer's stock plan may have nuanced and potentially significant tax considerations when selling company stock or filing taxes.

Charitable Giving

The United States tax code provides incentives for charitable gifts. If you itemize taxes, you can generally deduct the value of your gift from your taxable income. Donating appreciated securities, such as long-term appreciated stocks or mutual funds, may allow you to claim a fair market value deduction and eliminate capital gains taxes.

Frequently asked questions