Tax season is upon us! Even though Uncle Sam thinks it’s the most wonderful time of the year, in the real world, we know it can be stressful and we wanted to provide a guide for our clients with some resources to help you prepare.
The most common questions we receive about tax forms are listed below:
When will i receive my form 1099?
This depends on the type of account you hold.
1099’s are typically released in waves by investment firms beginning as early as January 31st all the way through March 15th.
Most clients should see 1099’s postmarked by February 15th. However, some taxpayers could receive 1099’s as late as mid-March.
Why would I potentially receive a 1099 in mid-March? Isn’t this late?
As frustrating as we know a March release of a 1099 can be if you’re trying to file your taxes early, it technically isn’t late. Producing consolidated 1099’s has grown increasingly complex, and the IRS allows financial firms to postpone issuing 1099’s when they don’t have all the necessary information to accurately produce your tax forms.
This occurs in the first place because of a chain of different regulatory reporting deadlines between the issuers of securities, fund companies, and brokerage firms, which turns into a waiting game between firms.
Just know the financial firms issuing your tax forms aren’t trying to cause you pain. In fact, they’re trying to do you a favor by not issuing incomplete 1099’s that would end up needing to be corrected later (which might cause a taxpayer to file an amended tax return).
Do I get a 1099 for all my accounts?
Not necessarily. For example, withdrawals from a retirement account will generate a 1099. However, contributions to a retirement account will not generate a 1099 because contributions are not a taxable event.
All contributions to retirement accounts will be reported on Form 5498, which is not required for filing your tax return and is generally released in May. If your tax preparer asks how much you contributed to a retirement account last year (like an IRA or Roth IRA), your year-end statement will have the information they need. You can also call us to get this information and we'd be glad to assist you.
How do I access my tax forms?
Depending on the document delivery preferences you selected when your account was opened, you will receive your tax forms either in the mail, or they can be accessed online.
We have put together an overview of how to locate your documents depending on where your account Is located.
For clients with Charles Schwab accounts, tax forms can be accessed in your Schwab Alliance portal under the statements tab. You will find a 1099 Dashboard on this page with an expected date for delivery of your tax forms.
Click here to log in to your Charles Schwab account.
For clients with American Funds accounts, tax forms can be accessed in your American Funds client portal under the “Statements & Tax Forms” tab located in the light blue bar at the top of the page.
Click here to log in to your American Funds account.
SCF Securities – National Financial Services (IMPORTANT)
Last year, you’ll recall we transitioned away from our former broker-dealer, SCF Securities. Since we were affiliated with them for part of 2021, you may receive tax statements from our former investment custodian, National Financial Services.
Please note, since we no longer have an affiliation with them, we will not have access to these tax forms. If your tax forms arrived in the mail last year, you can expect the same for this year. If you accessed your tax forms electronically, you may be able to access them through your previous client login portal.
If you run into any trouble accessing these tax forms, please call SCF Securities at 559-456-6108.
Lastly, if you are having trouble logging into any of your accounts or finding your tax documents, please feel to call our office at 209-857-5207 and we will be more than happy to assist you.
We hope you find this guide helpful and wish you a blessed and prosperous year ahead!
Michael Howell, CFP®
Blom & Howell Financial Planning