As we head into the 2019 tax filing season there are various items related to your tax preparation we would like to bring to your attention.
Understanding the information outlined in this letter will simplify the filing of your 2019 tax return. Everyone on your Creative Planning team is here to assist you with any of these items.
- Your custodian (i.e. TD Ameritrade , Charles Schwab or Fidelity) will mail initial 1099s by the end of February. If you have elected to receive paper copies of these documents, you should receive them shortly thereafter. You may also download the documents via your custodian’s website.
- TD Ameritrade: Click “My Account,” then “Tax Center.”
- Charles Schwab: Go to “Statements,” select an account and specify a date range, then use the Document Type filter to select “Tax Forms.”
- Fidelity: Click “Statements” tab, there will be a link for tax forms. The number of forms you can expect to receive is listed, as well as the estimated timeframe for each.
- For clients preparing their own returns, your 1099 information can be downloaded directly into TurboTax, which includes instructions for downloading.
- You may receive a corrected 1099 after receiving your initial form in February or early March. This is not due to an error on your custodian’s part; there are numerous reasons these can be created. We suggest preparing your return, but not filing until late March or early April. Waiting to file will allow you to quickly change any new information within the corrected 1099 issued by your custodian.
Realized Gain/Loss Reports
The 1099 from your custodian will include all proceeds from stock sales and basis information on file. Our Operations team can also generate a realized gain/loss report that you may find easier to use or to help identify basis that may be missing on your 1099. Please contact your Wealth Manager if you or your tax preparer would like to receive this additional report.
Master Limited Partnerships/MLPs
- If you hold any Master Limited Partnerships in your portfolio, you will receive a K-1 for each position held in 2019. The income on the K-1 needs to be included on your tax return. K-1s are typically available around March 15.
- Though you will receive a paper copy of your K-1(s), they can also be accessed online by creating an account at www.taxpackagesupport.com.
- Some K-1s can be directly imported into TurboTax, and instructions are available within TurboTax.
Tax Filing Deadlines & IRAs
- Your Federal individual income tax return is due April 15, 2020. If you cannot file your return by that date you may request a six-month extension from the IRS. However, this is only an extension of time to file your completed return – not an extension of time to pay your taxes. If you have amounts due with your 2019 tax return, they must be paid by April 15 with your extension to avoid penalties and interest.
- Contributions to traditional, Roth IRAs, and SIMPLE IRAs can be made through April 15, 2020 for the 2019 tax year. Contributions to SEP plans may be made up to April 15, or October 15 if you extend your tax return. We suggest you speak with your Wealth Manager by March 31 to ensure contributions can be addressed in a timely manner.
- Other tax form due dates are as follows:
- Form 1065 for a partnership or LLC is due March 16, 2020
- Form 1120S for S Corporations is due March 16, 2020
- Form 1041 for Trusts & Estates is due April 15, 2020
- Form 1120 for C Corporations is due April 15, 2020
- FinCEN 114—FBAR is due April 15, 2020
If you have engaged Creative Planning Tax to prepare your income tax returns, we will obtain for you all Form 1099s, gain/loss reports from managed accounts, Master Limited Partnership K-1s, and other activity from your managed accounts. You will receive our Tax Organizer later this month to help you gather your other tax information. Everyone at Creative Planning is here to make this process as smooth as possible for you. Please do not hesitate to contact your Wealth Manager for any reason regarding these or any other topics.