At the beginning of a new year, our attention turns to W-2s, 1099s, K-1s and other assorted IRS-required information as tax season ramps up. We thought it would be helpful to provide some information to keep in mind as our clients begin to assemble their income and expense records from the previous year.
First, some IRS deadlines to keep in mind:
- January 31 is the deadline for employers to provide W-2 forms.
- January 31 is also the deadline for 1099 forms, which report dividend and interest income, to be distributed from banks, brokerage firms, retirement plans and other assorted miscellaneous entities that make payments which are taxable.
- February 15 is the deadline for firms to distribute form 1099-B which reports sales of stocks, bonds and mutual funds.
- March 15 is the deadline for K-1s that originate from trusts, LLC’s, partnerships and S-corporations.
- Monday, April 15 is the deadline for filing individual and most trust income tax returns.
Keep in mind that while these are deadlines published by the IRS, most companies file for (and are normally granted) extensions for reporting client tax information. You may also receive corrected 1099s from your financial services company as late as March 31. For most taxpayers, it is advisable to wait until at least February 28, to deliver 1099s to tax preparers. You can begin assembling and delivering other tax related documents to your tax preparer sooner, but hold off on the 1099s, particularly if you have a history of receiving corrected 1099s.
The new tax laws that went into effect January 1, 2018 may significantly change the way we assemble information about our deductions. Remember there are no substantive changes to medical or charitable deductions. Your mortgage interest deduction may be different if you have more than $750,000 of mortgage debt or if you took out a new home equity line of credit. All state or local income/property taxes are deductible, but only to a maximum of $10,000. All miscellaneous itemized deductions (tax preparation, investment management fees, safe deposit box fees, etc.) have been eliminated.
Finally, we are excited to be rolling out an enhanced client portal experience in the first quarter of 2019. This will give our clients the ability to securely access their Altavista account information online from any device on an internet browser through the client login page on our website, or download our new Altavista Client Portal app straight to your device. In addition to accessing your account information in real time, you will be able to securely post documents for review by your advisor or our team, and we will be able to securely post documents to your portal for review, without the need to use email or wait on traditional mail. Finding new ways to communicate sensitive information in a convenient and secure way is a major priority for us.