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Tax Season FAQ

 

Below are some questions we often hear from our wealth management clients when they’re prepping for tax season. If you do not find an answer to your question here, please email our Team at support@monumentwm.com or call 703.504.9600.

*Please Note: Due to COVID-19, the filing and payment deadline for 2019 federal taxes for individuals, trusts and corporations has been moved from April 15 to July 15. For more information, visit the IRS websiteThis relief only applies to federal income returns and tax (including tax on self-employment income) payments otherwise due April 15, 2020, NOT state tax payments or deposits or payments of any other type of federal tax. Check with your state tax agency to be sure you know the deadline for filing and paying your state taxes.

Where are my 1099s?

Financial institutions mail out 1099s in phases. While most forms arrive by March, others are sent out as late as March 15th due to income reclassification and late reporting from some investment companies. A timeline of estimated mailing dates is provided at the end of this webpage.

This is why we highly suggest scheduling your appointment with your tax professional later in the tax season to make sure you have ample time to receive all your required forms.

Why did I receive so many 1099s?

You will receive 1099s in the mail from each financial institution where your accounts were held throughout the year (1099s for taxable non-retirement accounts and 1099-Rs for retirement accounts from which you’ve taken a distribution).

This means if you transitioned your account to TD Ameritrade Institutional mid-year, you will receive a 1099 from both institutions for that account.

Why are there different mailing dates for 1099 Consolidated Statements?

Financial institutions mail 1099 consolidated statements in waves as they receive information from investment companies. For certain security types, final tax information may be received after the standard deadline resulting in a delay in sending your statement.

Reclassification: What is it and what do I need to know?

Income reclassification is an annual process where security issuers change the tax characterization of distributions that were paid during the tax year. Often, the result of income reclassification is a more favorable tax treatment.

The income reclassification process takes place after the end of the tax year, during the first quarter, when security issuers announce their income reclassification for the previous tax year. The income reclassification process affects income distributions you may have received during the previous tax year.

The IRS requires final income reclassification to be reported to you on Form 1099. All financial industry firms receive reclassified data from the issuers.

Why did I get a Preliminary 1099 Consolidated Tax Statement?

A preliminary 1099 Consolidated Tax Form Statement is an advanced DRAFT copy of your 1099 tax forms. The draft form should NOT be considered final and should NOT be used for the purpose of filing tax returns with the IRS or with any state or other regulatory authority. The document is for your information only and may assist you with tax preparation. Not everyone will receive these preliminary forms.

How do I get my tax forms online?

That depends on where your accounts were held during the year. If you had accounts at TD Ameritrade, your 1099 will be on the Monument Client Portal and in TD’s AdvisorClient site.

If you have an account with Jackson, Lincoln, American Funds or another institution, your statements will come directly from them, or their online portal.

All 1099s will be sent by mail, so we recommend collecting them in a folder as they arrive, to help stay organized and prepared for your appointment with your tax professional.

Who should I contact with questions about my 1099s or investments as they relate to my taxes?

Our Team at support@monumentwm.com is a good starting point for these questions, but your CPA will be your best reference for tax advice.

*Remember, Monument is not an accountant and no portion of the website content should be interpreted as accounting or tax advice.

That said, we are happy to connect you with an accountant that we like and trust to help with your taxes. Let us know if you’d like us to make an introduction.