Tax Reporting Alerts
Additional Forms 1099 for Money Market Fund Positions
In 2019, some of our clients held positions in one or both of the following money market positions: the JP Morgan US Government Money Market Fund and the JP Morgan Federal Money Market Fund Institutional Class. Be aware that each of these money market funds will generate their own separate Form 1099 and will arrive addressed from “The Carillon Family of Funds.” They will be mailed on February 15. Keep these forms with your tax records and share them with your CPA, as they reflect dividends that will not appear on your Raymond James Form 1099s.
Required Minimum Distribution (RMD) Reporting
For those who are subject to RMDs, the 1099-R that you receive from Raymond James will reflect your RMD amount and the federal income tax withheld from the distribution (if any). Be sure to share this information with your tax preparer.
Qualified Charitable Distribution (QCD) Reporting
TGS will provide QCD summaries to clients who have used this strategy in 2019. Be sure to advise your CPA about your QCD(s). If you aren’t working with a CPA, here are two things to remember as you file your 2019 return.
One. It can be easy to forget that the QCD portion of your distribution should not be included in your taxable income on your tax return. Your 1099-R will not break out the amount of your QCDs from your gross distribution. When you file Form 1040, report your total distribution on line 4a. Report the taxable portion of your distribution on line 4b and write “QCD” beside it to indicate that the difference between the amounts is due to a qualified charitable distribution. To read more about reporting the QCD when you file your tax return, refer to page 24 of the Instructions for Form 1040 at IRS.gov.
Two. Keep receipts or acknowledgements from the charities that show that your contribution was received with your tax records.
Tax Forms and Important Dates
On February 15, Raymond James will begin sending Forms 1099 to clients with investment assets in taxable (non-retirement) accounts. Unfortunately, each year we must remind you that 1099 delays and amended 1099s are an inconvenient reality. Due to delays caused by specific holdings and other complexities, some finalized 1099s may not be sent before the end of March.
Because of the potential for delays and amendments, we urge you to wait until April to complete your tax filing or file for an extension. This doesn’t mean that you can’t get started with your tax preparer, but only that the actual filing should be put off to avoid the potential hassle and extra expense of processing and filing an amended return.
You can find a timeline for the delivery of various tax documents and instructions for importing and exporting tax reporting data on the Raymond James Tax Year 2019 Resources page.
Online Access for Your Tax Forms
You might prefer to obtain your tax documents online through Client Access. If you’re already using Client Access, go to your Account Services screen to choose paperless delivery of your tax reports and other documents. You can click here to enroll in Client Access.
With the online delivery option, your Raymond James tax documents are securely stored and easy to find and print. You should receive an email each time a new document is available.
Protect Your Identity
The work of cyber criminals never stops evolving. At tax time and year-round, take steps to protect your devices and your identity. Familiarize yourself with the signs of identity theft, and stay abreast of the latest scams and fraud tactics. The IRS page outlining tax scams and consumer alerts is a good place to start.
If you’d like more information about changes brought about by the Tax Cuts and Jobs Act (TCJA), visit the IRS Tax Reform information page.
TGS is here to help
Everyone at TGS Financial is accustomed to collaborating with the various professionals on our clients’ financial teams. Many of our clients have given us permission to communicate directly with their CPAs. Please do not hesitate to reach out to TGS Financial should you or your tax preparer have questions this tax season.
Please remember that past performance may not be indicative of future results. Different types of investments involve varying degrees of risk, and there can be no assurance that the future performance of any specific investment, investment strategy, or product (including the investments and/or investment strategies recommended or undertaken by TGS Financial Advisors), or any non-investment related content, made reference to directly or indirectly in this article will be profitable, equal any corresponding indicated historical performance level(s), be suitable for your portfolio or individual situation, or prove successful. Due to various factors, including changing market conditions and/or applicable laws, the content may no longer be reflective of current opinions or positions. Moreover, you should not assume that any discussion or information contained in this article serves as the receipt of, or as a substitute for, personalized investment advice from TGS Financial Advisors. To the extent that a reader has any questions regarding the applicability of any specific issue discussed above to his/her individual situation, he/she is encouraged to consult with the professional advisor of his/her choosing. TGS Financial Advisors is neither a law firm nor a certified public accounting firm and no portion of this article’s content should be construed as legal or accounting advice. A copy of the TGS Financial Advisors’ current written disclosure statement discussing our advisory services and fees is available upon request.