When (in heavens) can I get my 1099 form?
Most investors don’t want to know much about Form 1099 other than when and how they get it. In this blog we’ll answer the question of when you can get your 1099, how you can do so, and how your 1099 plays into your overall tax return.
1099 fax form delays can be a pain
Waiting….waiting….
Where’s my 1099 form?
It can be nerve-racking to wait for your 1099 forms to come in so you can file your taxes!
As financial advisors in Philadelphia serving clients nationwide, 1099 tax deadlines play a big part in our clients’ happiness during tax season. Sometimes not having your 1099 for your brokerage accounts can delay the filing of your taxes. We’ll get into how to handle all this, but let’s start with the basics first.
You’re probably waiting for your consolidated 1099 form
Most of our clients receive a consolidated 1099 from the brokerage firms that hold their accounts. If you have investments, this is probably the form you need.
What is a consolidated 1099 form?
A consolidated 1099 form covers all aspects of your brokerage account that may potentially be taxed – all rolled up into one, so you or your tax preparer can input it into your tax return.
This includes:
- 1099-B (transactions)
- 1099-DIV (dividends)
- 1099-INT (interest)
- 1099-MISC (rent, royalty and other miscellaneous payments)
- 1099-OID (original issue discounts)
Since these are the more common forms people need, we’ll discuss them from hereon.
You only need these forms if the amount of income you received falls above certain thresholds, all which are disclosed on the IRS’s Guide to Information Returns.
When can I get my 1099 form?
Unless otherwise indicated, the 1099 form is due to recipients by the following dates each year:
- 1099-B – February 15th
- 1099-DIV – January 31st
- 1099-INT – January 31st
- 1099-MISC – January 31st (but February 15th for substitute dividends and tax-exempt interest reported by brokers, and proceeds paid to attorneys)
- 1099-OID – January 31st
If you didn’t see the particular type of 1099 form desired listed here, the best way to find out when you can get your 1099 form is to reference the IRS Guide mentioned above.
Does this answer the question of when 1099s need to be mailed?
Yes and no.
These 1099 tax deadlines are merely guidelines. For example, 2022 is a bit of an overwhelming year for many due to changes in tax laws, the emergent popularity of cryptocurrency, the pandemic, and other reasons. 1099 forms may be delayed for those reasons.
Brokerage firms, for example, may be late in sending out their 1099s because they are relying on information from the sponsor of whatever assets the client holds. In other words, if a client holds a mutual fund in their account, the brokerage firm must rely on info from the mutual fund company. If that company is late in reporting their numbers to the brokerage firm, then the brokerage firm in turn is late in issuing the client's 1099 - and so on, and so forth. Based on our experience with our clients’ brokerage accounts, 1099's are usually issued between 2/15 and 2/28.
How do you handle it if your 1099 doesn’t come on time? We’re about to get to that.
How to get a copy of your 1099
Now that we’ve discussed when you can get a copy of your 1099 form, let’s talk about how you can get it. You can receive your 1099 from a brokerage firm by logging on to your account and visiting their tax forms center. You may also elect to have it mailed to you, though this may slow things down a bit.
It is critical that you get your 1099!
The 1099 is not optional. You do have to wait for your 1099 to file your taxes. If you don’t file your form 1099, you are more likely to get audited. You are also due to pay tax retroactively on any income that you did not report, and that comes with interest attached to it.
If the company does not issue a 1099, contact them to inquire about it. If they do not respond, contact the IRS. They may have to pay penalties.
Did we answer your questions about when you can get your 1099?
We hope our explanation on when you can get your 1099 tax form was easy to understand.
We are a fiduciary financial advisor in the Philadelphia area, but we work with clients across the country. We provide fee-only, objective advice to our clients on taxes, wealth management, and financial planning. If you would like to discuss a possible relationship, contact us.
Sources
https://www.irs.gov/pub/irs-pdf/i1099gi.pdf.