- February 29, 2024
- Financial Synergies Wealth Advisors
We’re in the thick of tax season, so we wanted to provide some additional resources as you prepare to file your 2023 tax return. We’re also going to provide some additional details about the most common tax forms for investment accounts – Form 1099s.
Important Resources for Filing Your 2023 Tax Return
First, here are some general PDF guides that may come in handy, depending on your tax situation:
What Documents Do I Need To Collect For Filing My 2023 Tax Return?
As Someone Who Is Working, What Issues Should I Consider When Reviewing My 2023 Tax Return?
As a Retiree, What Issues Should I Consider When Reviewing My 2023 Tax Return?
And some resources for investors with accounts at Charles Schwab or Fidelity:
A Guide to Your Schwab Tax Forms for the 2023 Tax Year
Fidelity Tax Form Delivery Calendar
Form 1099s
If you receive income from investments, dividends, education savings plans, or contract work, you’re undoubtedly familiar with IRS Form 1099. By the time April 15th rolls around, you might have even collected a hefty stack.
However, what might be less clear is when you should expect to receive them. Some insist that the deadline is January 31st. Or maybe it’s February 28th? For a small fine, the sender might have until late March 31st for certain Form 1099s.
*For most Schwab and Fidelity accounts, the 1099s have already been generated.
In practical terms, the fuzzy deadline does not matter as much as when you can expect to receive these critical forms. After all, you owe taxes on the income, even if the 1099 doesn’t arrive at all.
Businesses, financial institutions, and even local governments have any number of reasons (or excuses?) for why they might not send Form 1099s when you and your financial professional prefer to receive them. Some are still balancing their books until the last minute, and certain investment funds may take longer to reconcile overseas holdings.
Whatever the reason, this can cause a fair bit of consternation among investors and financial professionals, many of whom may feel pinched between waiting for the mail and looming tax deadlines. Here are a few things that may ease the tension while you wait.
- Make a list of Forms 1099 you expect to receive – Proactively tracking expected Form 1099s may help you avoid surprises or, worse yet, neglecting to file one with your taxes.
- Check the online portal, if available – In most cases, a digital copy of the expected Form 1099 may be available up to a week before you receive it in your mailbox.
- Watch out for corrected Forms 1099 – Sometimes, the Form 1099 you receive may be an estimate instead of the final version. Read any accompanying material and check for a watermark.
- Keep your address current – The IRS will get a copy whether or not you get yours, so make sure you give the sender the right information to send your Form 1099 to the correct address.
- Look for errors and report them ASAP – You might not have much time to correct any errors, so be sure to open, read, and act on your Form 1099s as soon as you receive them.
- The IRS gets a copy, too – Don’t forget that the IRS receives a copy of all Form 1099s, just like you. If you forget to include one in your filing, you’ll likely receive a letter asking you to account for the funds you neglected to include.
When to get help
Don’t go it alone! Please reach out if you’re unclear on which Form 1099s you might receive, why, or even when. As financial professionals, we may be able to help you understand what you might expect and how it impacts your overall financial picture.
Remember that this email is for informational purposes only and is not a replacement for real-life advice. Consult your tax, legal, and accounting professionals before modifying your tax strategy, and let us know if you’d like to set aside some time to chat.
Concerns or questions about your financial plan or tax situation? Contact Financial Synergies today.
We are a boutique, financial advisory and total wealth management firm with over 35 years helping clients navigate markets and developing custom financial plans. To learn more about our approach to financial planning please reach out to us. One of our seasoned advisors would be happy to help you build a custom financial plan to help ensure you accomplish your financial goals and objectives. Schedule a conversation with us today.
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