2019 Tax Year Guidance

Timing:

You may want to wait until late March to provide your tax preparer with your tax reports.  Investment companies sometimes change how income is classified after year-end, which may result in your custodian having to issue revised Forms 1099. For this reason, if you plan on filing by this year’s April 15, 2020 deadline, some tax preparers may recommend that you wait until late March to ensure that you have the complete data.  Please touch base with your tax preparer to understand their timing preferences.

Qualified Charitable Distributions:

The IRA custodian’s Form 1099-R does not disclose the amount of qualified charitable distributions.

  • If you directed your IRA to make a qualified charitable distribution (QCD) in 2019, we will be providing you with documentation showing distributions that we assisted in processing with you and the custodian.
  • If you issued checks from your IRA for qualified charitable distributions, we recommend reviewing your check register and providing your tax preparer with these details.

Form 1099 (Taxable Accounts):

  • Capital Gains and Losses: These are reported on the Form 1099 from your custodian.
  • Other Expenses from Taxable Accounts:
    • If applicable, Forms 1099 also will include other expenses paid out of your taxable accounts, such as margin interest, which may be deductible.
    • If applicable, Forms 1099 report foreign taxes paid out of your taxable account during the year together with disclosure of gross foreign income.
  • Delivery (Mail or Digital): Please note that depending on your delivery preferences, you may receive certain 1099s via regular mail, while others may be received digitally. We have provided a calendar on when to expect the initial 1099s from the four main custodians that we work with.

Donor Advised Fund Noncash Contributions:

If you made noncash contributions, including securities, valued at more than $500 to a donor advised fund during 2019, please note that you need to file a Form 8283 with your federal tax return.

Completed Tax Return:

For our wealth management clients, please be sure to forward copies of your completed 2019 federal and state tax returns to us once they are completed, so that we can review and discuss tax strategies with you for the upcoming year.

We hope that you find the above information useful in the preparation of your taxes.  Please contact us with any questions.

Custodian Mailing Schedule For 2019 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 17, 2020
  • 1099 2nd Mailing: February 6, 2020

  • 1099 3rd Mailing: February 12, 2020

Fidelity Investments

  • Retirement Tax Forms (5498, 1099-R): January 16, 2020

  • 1099 1st Mailing: January 25, 2020
  • 1099 2nd Mailing: February 15, 2020
  • 1099 3rd Mailing: February 29, 2020

National Advisors Trust Company

  • 1099-Rs: January 31, 2020
  • 1099s: February 15, 2020

  • Trust Schedules K-1 Wave 1: February 28, 2020

  • 1099s and Trust Schedules K-1 Wave 2: March 15, 2020

  • Trust Schedules K-1 – Wave 3 (excludes accounts requiring extensions): April 10, 2020

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