Several conversations this week involved discussions of the Tax Forms that we are expecting to receive…
Thanks for a Great Timely Post Subject!
The key to tax forms is focusing on the last letter or letters… they are basically all 1099 – but the last letter or letters drives the type of form and reporting!
Tax Form ABC
Here are the forms coming our way, with a quick explanation…
R- Stands for Retirement (fun word association)
1099-R’s are rarely corrected, as the reporting is super easy … whatever was taken out of the account is reported for tax purposes!
1099-R
Distributions from Pensions, Annuities, Retirement or Profit-Sharing Plans, etc. |
Distributions from qualified retirement plans—for example, individual 401(k), profit-sharing, or money-purchase plan—or any IRAs or IRA recharacterizations, conversions, or removals of excess |
January 17, 2020
By close of business |
Next up the consolidated form…
Think of this one as the Whole Enchilada….(bunches of 1099 s on this one form!)
These are the main forms within the Whole Enchilada….
Form 1099-B, Form-DIV, Form 1099-INT, Form 1099-MISC (Dividends, Interest, Miscellaneous other stuff)
This form may have multiple corrections….
| Consolidated Form 1099 |
All reportable income and transactions for the year
If a client received at least $10 in either dividends or interest during the tax year or had an equity sale in a taxable account, they will receive an Internal Revenue Service (IRS) Form 1099
If applicable to the account, Consolidated Form 1099s may include: Form 1099-B, Form-DIV, Form 1099-INT, Form 1099-MISC, and Form 1099-OID |
February 12, 2020
By close of business
May be available earlier, depending on the activity and holdings in your client’s account |
Many ask, why the corrections…
“Why can they not get it correct the first time?”
Let’s exaggerate to make our point… hang with me; If you have an account with 50 investment holdings, there are 50 chances to have a correction as EACH ONE of these investments will have their own tax reporting…. said another way, if any one of these 50 holdings has an issue/correction, there will be a Whole Enchilada corrected form…
Hmmmm… now that we think about it….surprised we do not have more corrected forms!
During the fall, Donald “The Brain” went to great extensive efforts to get all basis information correct… that does not mean that there will be no Corrected forms, but we expect much fewer, if any!
Happy Friday…
Tennis Player is six hours away with the better half … still in Texas… fulfilling the goal once again…maybe by accident… but that is ok!
Have a Great “ABC Tax form” Day!
John A. Kvale CFA, CFP
Founder of J.K. Financial, Inc.
A Dallas Texas based fee only
Financial Planning Total Wealth
Management firm.
32.862841
-96.808100
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Slow to Arrive Tax Forms, Little to No Corrected … Snap Back Reminder … Spring Break Next Week, Early Start … Friday
Tax forms Update!
Not sure if it is the mail or the processing but for some reason our tax forms have been very spotty in receiving. Using myself as an example yesterday I received another one and several of the forms have been received multiple weeks ago.
If you are missing a form please let us know as we have immediate access electronically and will be glad to email you a form as we don’t want to let the mail stop your tax processing.
On another note … so far we’ve only had one corrected 1099 and that lucky person knows who she is so we are likely good to go and begin processing your taxes!
Snapback Reminder
Not trying to beat us down on this, but once again we had a vicious Snapback mid-week for no apparent reason. While no one is exactly sure why these occur when we’re in a slow down., They do occur, and continue to occur. Just putting a bug in our collective ears to remind all as we go through this slow down Snapbacks are likely to continue to occur. Here is the recent post about the subject matter … below is the chart
Spring Break on the Horizon
With three official school ice closings so far this year, it’s puzzling that today an official ice make up day was not utilized. Seems like when yours truly was in the same situation we ALWAYS made them up. Oh well, for the safety of all those on the streets we will be loosely tethered and out of the office with next week being our collective spring breaks. Tethered with electronics of course as we get ready for the homestretch of tax season
Ahhhhh . but today is a Friday with the office electronically being monitored for the safety of all. Hope you have a great Friday and a super weekend and for the record spring break doesn’t feel too spring Breaky with it being expected to get down to 25° here in the south tonight!
Talk next week from afar thanks for your time!
John A. Kvale CFA, CFP
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Posted in Investing/Financial Planning, Market Comments, Tax Related
Tagged 1099, Snap Back, Spring Break, Tax Forms