Municipal Bond Spreadsheet Added – 2/18/2020
What tax forms will I need from my Charles Schwab accounts?
When will I get my tax forms?
Charles Schwab has a personalized 1099 Dashboard that provides expected dates for your 1099- Composite. You can access this dashboard by logging into the Schwab Alliance website. You will get an automatic prompt directing you to this dashboard, however you can also locate it under the Statements tab.
WHY DO CORRECTED 1099 FORMS OCCUR?
A corrected 1099 is generated when a mutual fund reallocates or reclassifies distributions. When this happens Charles Schwab is required to generate new 1099’s no matter how small the change might be.
WHAT SHOULD I DO IF I GET A CORRECTED 1099?
Let your tax preparer know and make sure they have a copy of the corrected 1099.
WHAT HAPPENS IF I GET A CORRECTED 1099 AND I HAVE ALREADY FILED MY TAXES?
Seek the guidance of your tax professional but you may have to file an amended tax return.
HOW WILL I RECEIVE MY TAX FORMS?
This is based on your mailing preferences with Charles Schwab and Level Financial Advisors.
WHAT DO I DO IF I CAN’T FIND MY TAX FORMS OR I AM NOT SURE IF I SHOULD HAVE ONE?
Please log into your Charles Schwab Account through the Schwab Alliance Website to see if any tax documents are available. If you can’t find the information you are looking for, please call us.
QUALIFIED DISTRIBUTIONS TO CHARITY (QCD)
If you gifted any amount from your IRA DIRECTLY to charity, then you need to let your tax preparer know, as this is not reflected on your 1099-R. Level Financial will send out a separate confirmation letter for each IRA that used this specific charitable gifting strategy.
In order for the IRA distribution to have been made directly to charity, the check had to come from Schwab and be payable to the qualified charity of your choice. If the check was made payable to you, then it was a different gifting strategy and may be reflected elsewhere on your tax return.
RETIREMENT CONTRIBUTION DEADLINES
You have until April 15, 2020 to make a 2019 Traditional IRA or Roth IRA contribution, but we urge you to contribute earlier. You can mail 2019 contribution checks made payable to Charles Schwab to our office any time prior to April 1st.
After April 1st, you must send checks directly to Charles Schwab to allow time for processing. Charles Schwab will accept 2019 contribution checks as long as they are postmarked by April 15th.
The 2019 contribution limits are $6,000 if you are under age 50 and $7,000 if you are age 50 or older.
If you want to establish a new account, let us know immediately.
INCOME TAX PAYMENT FROM YOUR CHARLES SCHWAB ACCOUNTS
Please let us know if you think you will need to withdraw money from your account to pay your income tax bill. Please note, if trades need to be made, they can take up to 3 business days to settle. There are three ways we can send you money:
Moneylink– If you already have a moneylink set up, it will take 1-2 business days to send funds to your linked account. If you need to set up a new moneylink, it can take up to 10 business days; once it is set up, money will be sent in 1-2 business days.
Check by mail– This can take 7 to 10 business days to arrive at your home. Please allow ample time for this process.
Wire– Charles Schwab charges $25 for a wire and you would need to sign a form.
MUNICIPAL BOND SPREADSHEET*
If you have a brokerage account that holds municipal bonds, you may be able to exclude the income generated from those bonds on your tax return, depending on a few factors.