Box 2 reports income credited to your account from royalty trusts. Payments of royalties are generally from investments in natural resource companies.Supplemental tax information is furnished for this income on the WHFIT Tax Information Statement by March 15.
Box 3 reports income credits classified as "other income" for tax purposes. This includes stock loan fees earned.
Box 7 reports reports asset management fees earned.
Substitute Payments in Lieu of Dividends or Interest (PIL)
Box 8 reports PIL payments credited to your account during the previous calendar year. The amounts were credited in lieu of the normal interest or dividend payment when your security is lent. As disclosed within your margin disclosure, your broker is authorized to loan your shares from an account with an outstanding margin debit balance. (Note: PIL payments are not eligible to be treated as qualified dividends, except under specific circumstances.)
Important Points on PIL Income:
IRS Circular 230 Notice: These statements are provided for information purposes only, are not intended to constitute tax advice which may be relied upon to avoid penalties under any federal, state, local or other tax statutes or regulations, and do not resolve any tax issues in your favor.