1099 Tax Season Update
As tax season approaches, we want to ensure you’re up to date on the latest information regarding your 1099 tax forms. Here are three key things to know:
1. Schwab 1099 Production Timeline – Final Run Approaching
If you haven't yet received your 1099, it will be included in the final production run. Here’s the breakdown:
The second of three scheduled 1099 runs was completed on February 14. This was a lighter run, meaning not many of our clients were included.
The third and final production run is scheduled for February 28. If you haven't received a 1099 yet, you will be able to access it online by this date and in the mail shortly thereafter.
You can check for your 1099 on the 1099 Dashboard at Schwab Alliance, where Schwab will notify clients when forms are available.
2. Need Help Sending Your 1099 to Your Tax Professional?
We understand that tax season can be stressful, and we’re happy to help make the process easier for you. If you would like us to upload or send your 1099 directly to your CPA or tax professional, please reach out, and we’ll be happy to assist.
3. Important Tax Considerations: De Minimis Rule & IRA Reporting
De Minimis Rule: If you have a non-retirement account with less than $10 in dividends, interest, or other reportable income, a 1099 will not be generated for your account.
IRA Tax Reporting: If you had no IRA withdrawals in 2024, you will most likely not receive a 1099 (contributions are typically captured on Form 5498, which is not needed to file your taxes).
We’re here to assist with any questions you have about your tax forms. If you need help accessing your documents or delivering them to your tax professional, don’t hesitate to reach out.
Robert Amato, CFP®, CIMA®
Principal
--------
This article may not be copied, reproduced, or distributed without Compass Wealth Management’s prior written consent.
Compass Wealth Management is a Registered Investment Advisor. Advisory services are only offered to clients or prospective clients where Compass Wealth Management and its representatives are properly licensed or exempt from licensure. This article is solely for informational purposes and is not intended to be relied on as a forecast, research, or investment advice, and is not a recommendation, offer, or solicitation to buy or sell any securities or to adopt any investment strategy. The opinions expressed may change as subsequent conditions vary. The information and opinions contained in this material are derived from proprietary and nonproprietary sources deemed by Compass Wealth Management to be reliable, are not necessarily all-inclusive, and are not guaranteed as to accuracy. Past performance is no guarantee of future results. There is no guarantee that any forecasts made will come to pass. Reliance upon information in this material is at the sole discretion of the reader. Investments involve risks.