On February 15, Raymond James will begin sending Forms 1099 to clients with investment assets in taxable (non-retirement) accounts. Unfortunately, each year we must remind you that 1099 delays and amended 1099s are an inconvenient reality. Due to delays caused by specific holdings and other complexities, some finalized 1099s may not be sent before the end of March.
Because of the potential for delays and amendments, we urge you to wait until April to complete your tax filing or file for an extension. This doesn’t mean that you can’t get started with your tax preparer, but only that the actual filing should be put off to avoid the potential hassle and extra expense of processing and filing an amended return.
You can find a timeline for the delivery of various tax documents and instructions for importing and exporting tax reporting data on the Raymond James Tax Year 2020 Resources page.
You might prefer to obtain your tax documents online through Client Access. If you’re already using Client Access, go to your Account Services screen to choose paperless delivery of your tax reports and other documents. You can click here to enroll in Client Access.
With the online delivery option, your Raymond James tax documents are securely stored and easy to find and print. You should receive an email each time a new document is available.
If you used a QCD strategy in 2020, be sure to advise your CPA. It can be easy to forget that the QCD portion of your distribution should not be included in your taxable income on your tax return. Here are three things to remember as you prepare your 2020 return:
1) Your 1099-R will not break out the amount of your QCDs from your gross distribution. The specifics of reporting a QCD when you file your tax return can be found on page 25 of the Instructions for Form 1040 at IRS.gov.
2) You’ll find a list of your 2020 QCDs on your “2020 Individual Retirement Account Year End Summary,” which was mailed by Raymond James on January 31.
3) Keep receipts or acknowledgements from the charities you’ve donated to with your tax records, to document that your contribution was received.
The work of cyber criminals never stops evolving. At tax time and year-round, take steps to protect your devices and your identity. Familiarize yourself with the signs of identity theft, and stay abreast of the latest scams and fraud tactics. The IRS page outlining tax scams and consumer alerts is a good place to start.
Everyone at TGS Financial is accustomed to collaborating with the other professionals on our clients’ financial teams. Many of our clients have given us permission to communicate directly with their CPAs. Please do not hesitate to reach out to TGS Financial should you or your tax preparer have questions this tax season.
Please remember that past performance may not be indicative of future results. Different types of investments involve varying degrees of risk, and there can be no assurance that the future performance of any specific investment, investment strategy, or product (including the investments and/or investment strategies recommended or undertaken by TGS Financial Advisors (“TGS”), or any non-investment related content, made reference to directly or indirectly in this newsletter will be profitable, equal any corresponding indicated historical performance level(s), be suitable for your portfolio or individual situation, or prove successful. Due to various factors, including changing market conditions and/or applicable laws, the content may no longer be reflective of current opinions or positions. Moreover, you should not assume that any discussion or information contained in this newsletter serves as the receipt of, or as a substitute for, personalized investment advice from TGS. Please remember to contact TGS, in writing, if there are any changes in your personal/financial situation or investment objectives for the purpose of reviewing/evaluating/revising our previous recommendations and/or services, or if you would like to impose, add, or to modify any reasonable restrictions to our investment advisory services. TGS shall continue to rely on the accuracy of information that you have provided. TGS is neither a law firm, nor a certified public accounting firm, and no portion of the newsletter content should be construed as legal or accounting advice. A copy of TGS’s current written disclosure Brochure discussing our advisory services and fees continues to remain available upon request.