2021 Tax Year Guidance

Timing

If you plan on filing by this year’s April 18, 2022 deadline, we recommend waiting until mid to late March to provide your tax preparer with your tax reports. Investment companies sometimes amend the original Form 1099 reporting of income, so filing in March helps ensure that you have the most up-to-date forms. Please touch base with your tax preparer to understand their timing preferences as well.

Security

Last year, the IRS expanded its Identity Protection PIN (IP PIN) Opt-In Program nationwide. The IP PIN is a six-digit number assigned to eligible taxpayers to help prevent cybercriminals from filing a fraudulent income tax return using your personal information. The IRS and other tax groups are urging taxpayers who want proactive protection against identity theft when filing their Form 1040s to opt into the program. We encourage you to discuss the program with your tax return preparer. You can learn about it here.

2021 IRA and Qualified Retirement Plan Distributions

IRA and Qualified Plan custodians should issue Form 1099-R by January 31, 2022 to report distributions and income taxes withheld from 2021 IRA and Qualified Retirement Plan distributions.

2021 IRA Nondeductible Contributions

If a 2021 nondeductible contribution was made to an IRA, Form 8606, Nondeductible IRAs should be filed with your Form 1040. Filing this form will report to the IRS the tax basis amount in your IRA so that the nontaxability of future IRA distributions can be substantiated. Keeping track of the tax basis in an IRA is the responsibility of the taxpayer, not the IRS or IRA custodian.

Qualified Charitable Distributions (QCDs)

Note that Form 1099-R received from the IRA custodian does not disclose the amount of 2021 QCDs from the IRA.

  • If you directed your IRA to make a QCD in 2021, we will provide you with documentation reflecting distributions that we assisted in processing with you and the custodian.

  • If you issued checks from your IRA for QCDs, we recommend reviewing the check register and providing your tax preparer with these details.

Form 5500

Note that if you are the plan sponsor for an individual (or solo) 401(k) plan that contained over $250,000 in assets as of the last day of the plan year, you are required to file a Form 5500 with the IRS. The filing date is July 31st for plans with a year-end of December 31st. We recommend that you speak with your tax preparer to confirm this form is being filed timely.

Taxable Account Reporting

Municipal bond fund interest

National municipal bond funds held in your taxable account(s) include bonds issued by many U.S. states. We have included the links below for the municipal bond funds most commonly held in our managed portfolios to assist you and your tax preparer in determining the portion of the interest from the fund(s) that may or may not be subject to state taxes.

Alternative Investments

If you own an alternative investment, you may receive a Schedule K-1 that reports your share of an entity’s taxable income, deductions, credits, etc. Given the nature of these investments, Schedule K-1s are generally issued later in the year and may necessitate a later time for filing your income tax returns

Transferred/Closed Accounts

  • Note that if you closed a brokerage account during 2021, a Form 1099 will still be generated for the closed account. Please check with the custodian of the closed account or your Modera team if you do not receive the document.

  • In addition, if you transferred an account from one brokerage firm to another during 2021, you will likely receive two Form 1099s, one from the former firm and one from the current firm.

Custodian Mailing Schedule For 2021 Tax Reports

Our recommended custodians have provided us with the following estimated mailing dates for your 1099s and other tax related documents. Please note that the dates are estimates and that actual mailing dates may vary. In addition, custodians may send corrected form 1099s, which should be forwarded to your tax preparer upon receipt.

Charles Schwab

1099 1st Mailing:
Late January to Early February

1099 2nd Mailing:
Mid-February

TD Ameritrade Institutional

1099 1st Mailing:
January 14, 2022

1099 2nd Mailing:
February 4, 2022

1099 3rd Mailing:
February 11, 2022

Fidelity Investments

Retirement Tax Forms (5498, 1099-R):
January 27, 2022

1099 1st Mailing:
January 28, 2022

1099 2nd Mailing:
February 18, 2022

1099 3rd Mailing:
March 3, 2022

Please do not hesitate to reach out to your wealth manager if you have any questions.