Once again, the inevitable April 15th tax deadline is approaching. Take some time to consider how the following items may apply to your tax situation before submitting your 2019 return. A quick tax review could save you money.
Tax Review Checklist
Consider the impact of the following before filing your taxes.
1. Realized Gains & Losses
Form 1099-B reports your gains and losses for the year. This comes from your account custodian (Schwab, Fidelity, National Advisors Trust, TD Ameritrade). The Form 1099-B will include cost basis and sales proceeds for transactions in taxable accounts.
2. Custodian-issued 1099s
Schwab announced that they will mail their 1099s no later than February 15.
National Advisors Trust will deliver 1099s by mail between February 15 and March 15.
TD Ameritrade 1099s will post online by February 12, with mail delivery following within 5-7 days.
Fidelity will make 1099s available online beginning January 18, with a final online activation date of March 8. They will mail paper forms within five business days of online availability.
3. Corrected 1099s
Complex tax laws related to dividend and capital gain distributions have resulted in more corrected 1099s, and many reporting agencies take advantage of a 30-day extension. That said, the first 1099 you receive may not be your last. Consider a short delay in filing your taxes to account for this possibility and avoid the extra expense and hassle of amending your returns later. Revised forms may not come until mid-March.
4. Contributions to 529 Plan accounts
If you contributed to a 529 plan in 2019 for a child, grandchild, or another family member, you may also qualify for deductions or tax credits on your state tax return. This benefit is often overlooked, even though many states encourage college savings in this manner.
5. IRA contributions
Did you contribute to a traditional IRA account in 2019? If so, confirm that you deducted the contribution. If you did not contribute and if you meet specific qualifications, you can still consider making a contribution until this year’s filing deadline of Wednesday, April 15th.
6. Non-Deductible IRA contributions/Roth IRAs
Did you make a non-deductible contribution to your traditional IRA? If so, make sure you or your tax preparer file Form 8606 to track the cost basis of the IRA account. This filing would also be required if you had non-deductible contributions that you converted to a Roth IRA in 2019.
7. Charitable gifts
Those who itemize deductions can deduct gifts of cash and/or securities (stocks or mutual funds) that were made to qualified charitable organizations in 2019.
As always, your SYM team is available to assist in the strategy and implementation of your overall wealth plan and to answer any questions that arise during a tax review or filing. If you do not yet have a financial advisor, call us at 800-888-7968 or visit sym.com.