Tax Documents

So, it’s that time of year again… tax time.  From all the calls we get, we can tell you’re all jumping for joy, shouting with glee and overall filled with exuberance.  Since that is out of the way we figured we would take the time to explain a bit about the tax forms you might be getting from us in this tax season.

- 1099-R

The first and likely most common tax document you will get from us is going to be the 1099-R.

  • The 1099-R reports distributions from annuities, profit-sharing plans, retirement plans, individual retirement accounts (IRAs), insurance contracts and/or pensions.
  • The IRS requires that this form is mailed by January 31st each year.

- 5498

  • Contains information about IRA contributions, rollovers, Roth IRA conversions and required minimum distributions (RMDs).
  • The IRS requires that this form is mailed by May 31st
  • Generally, the 5498 isn’t meant to help report your contributions, but used to help the IRS make sure what you report is correct.

- 1099 (from non-retirement accounts)

National Financial Services often sends this as a Consolidated 1099 comprised of the 1099-DIV, 1099-INT and 1099-MISC.

  • 1099-DIV - If you own a stock or mutual fund that pays dividends, you should receive this form.
  • 1099-INT - You should receive this form if you have a checking, savings or other bank account that earns interest.
  • 1099-MISC - You should receive this form if you worked for someone as an independent contractor. If you’re self-employed and have several clients, you should receive a 1099-MISC from each client who paid you $600 or more.
  • The IRS requires these forms are mailed by February 15th each year unless an exception is granted, at which point the deadline moves to March 15th.

This is the form we often get the most inquiries about.  People often try to do their taxes in February and the delayed mailing of these forms can hold up the process.

- Schedule K-1

  • K-1s are used to report your share of the partnership's income, deductions and credits.
    • Most of you won’t get a K-1 unless you are invested in a Master Limited Partnership.
  • The IRS requires these forms are mailed by March 15th each year.

I know this is as boring as it comes but we do receive quite a few calls about these documents.  Hopefully this will help your understanding of what potential tax documents you should expect to get this year and when you should see them.