2016 Income Tax Status

[sengsational]

Since the OP mentioned 1099-B, then they must have had a taxable brokerage account and that will usually mean a 1099-DIV. I cannot imagine that anything on a web site has accurate numbers for ETFs and mutual fund QDI and foreign taxes. I can guess that if one did not have any funds, then the stock dividends would be easy to see and QDI percentage would be the same as last year.

I must say this whole thread gives new meaning to "jumping the gun."

I agree, it's jumping the gun. But it annoyed me that 20% of my 401k withdrawal is in the hands of the wrong entity. And when "fairness" is involved, logic goes out the window. I'm ready to file an amended return if any of my numbers are wrong (but I think I got 'em all).

Fidelity has a page you can see what they've got (see below). Is this not to be trusted?

Wow, I've got to admit to total surprise that folks on this forum are considering filing so early, very little upside and a whole lot of downside.

When I filed, I didn't know it wouldn't be of any use until 1/23. I would not have filed if I knew that because, as you say, no ability to change anything now.

The problem that seemed to happen year after year was the IRS system would crash the first day they started accepting returns and sometimes returns would be acknowledged as accepted but in reality were lost in cyberspace. Could be very frustrating trying to explain that to a client that was counting on their money on a certain day and it didn't show up.

Lovely. Hopefully we won't have THAT happen this year.

 

[cathy63]

I'm not sure what advantage filing SW would provide,other than eliminating any math errors. But then again, I haven't tried any.

For me, the main advantage of using tax software comes in second and subsequent years, because it keeps track of everything that carries over from year to year and prevents me from having to manually find and enter numbers from the previous year on this year's forms. Just off the top of my head, I know we have passive loss carryovers; prior year AMT; education deductions that have a lifetime maximum; tIRAs with after-tax contributions; last year's state tax refund; and rental property depreciation. I like that the interview mode also helps me identify any new forms that should be filled out.

The smaller benefit is that it reduces the entire process of doing the state return down to about 3 minutes because I've already entered everything on the Federal.

 

[Corporateburnout]

I always thought the IRS won't start accepting returns until the end of January.

I start to input data in TT in early February but don't usually efile until the end of the month. If I'm due a refund I always went with direct deposit.

 

[LOL!]

Fidelity has a page you can see what they've got (see below). Is this not to be trusted?

Definitely not to be trusted. I have accounts at Fidelity and it shows the wrong information.

Do ANY of your investments in taxable accounts have Qualified Dividends for 2016? None of mine do, but I know the percentage of QDI will be above 70% eventually when they get this corrected.

 

[MRG]

Definitely not to be trusted. I have accounts at Fidelity and it shows the wrong information.

Do ANY of your investments in taxable accounts have Qualified Dividends for 2016? None of mine do, but I know the percentage of QDI will be above 70% eventually when they get this corrected.

Part of my career was at a transfer agency. Tax reporting is a real PIA for many reasons. Don't trust anything early, the chances of it being correct are slim. Of course if you don't mind corrections....YMMV

 

[sengsational]

^ I sold my last bit of already taxed stock this year, so everything now is in a tax advantaged accounts. These dividends are very small numbers anyway, and none next year. For the little bit of dividend, I believed what Fidelity said...it was the same as last year. If it's changed, and it makes a difference, I'll file an amended return, but I kind of doubt it would make a difference.

 

[frayne]

I've never filed early or even have that much of a refund or payment due but always get revised 1099s around the middle of March and don't like doing an amended return. I think wise planning in advance can reduce a lot of issues.

 

[Walt34]

I never get all the information I need until early February at the soonest and usually wait a couple of weeks to file to make sure I didn't forget about something coming in. But I did order TurboTax from Amazon just a few minutes ago. Still $39&change.

How does SS get the information to you? This is my first year taking SS so do they send a 1099R or something?

 

[Corporateburnout]

Definitely not to be trusted. I have accounts at Fidelity and it shows the wrong information.

Do ANY of your investments in taxable accounts have Qualified Dividends for 2016? None of mine do, but I know the percentage of QDI will be above 70% eventually when they get this corrected.

+1.

85% of my dividends were Qualified in 2015 but Fidelity's website shows 100% non qualified in 2016.

The information cannot be trusted. I'll wait for the official 1099-DIV before I file.

 

[GrayHare]

How does SS get the information to you? This is my first year taking SS so do they send a 1099R or something?

Your postal carrier will grace you with a Form SSA-1099.

 

[foxfirev5]

My first year of a combined ER and retirement. The net result is an excessive witholding on income and disbursements. Therefore I plan on filing a paper return with refunds applied to next years taxes.

 

[gerntz]

What's the rush? Only if you gave Feds too much to begin that I can see. Why would you do that?

Relax. I'm drinking another bottle tonight.

 

[Bamaman]

Heck, I filed 2015 taxes a short time ago--10/15/2016. It's too early to think about last year's taxes. And boy, was I surprised on what income was reported on some ETF's I'd never touched.

I had to go to the IRS to get a printout that showed everything reported to them before completing my taxes.

We'll see if Fidelity's a little more efficient this year on getting my funds info together.

And to think I try to keep my business nice and simple in my retired years. I've found over $14K in healthcare expenses alone in the past year--and that's with a good Medicare Supplement.

 

[Cobra9777]

Fidelity defaults everything to non-qualified until they have been provided the official information. So you definitely do not want to use this information. But the split can be easily estimated from prior-year returns. My US stock ETFs are always 100% qualified. The internationals are a mix, but the percentage for each ETF is quite stable from year to year. I also estimate foreign tax credit using the ratio of prior-year credit to non-qualified dividends. This ratio is also quite stable from year to year, and thus quite reliable for estimates. I would never actually file a return until the 1099s are in-hand, but estimates are pretty straightforward. I doubt my final tax will vary by more than $100 vs what's in TurboTax right now.

 

[Viking]

It will be up to 10 or 11 weeks until I receive the breakdown of foreign taxes paid, return of capital (if any), qualifying dividends vs non-qualifying.

But since I didn't have any taxes withheld, and don't owe anything, there is no rush. I'll file in April and collect a small refund based on DW splitting some pension income with me.

 

[audreyh1]

Fidelity has a page you can see what they've got (see below). Is this not to be trusted?

When I filed, I didn't know it wouldn't be of any use until 1/23. I would not have filed if I knew that because, as you say, no ability to change anything now.

Lovely. Hopefully we won't have THAT happen this year.

No, it's preliminary, and it's not complete and doesn't have qualified dividends for mutual funds nor foreign tax credits. Last year the fidelity funds had that info appear about mid-Jan, and it took until the end of Jan for the non-fidelity fund info to show up.

I redo my tax estimates at the end of Jan for planning purposes bast on the Fido tax info, but of course use the actually 1099s and Turbotax to get the final numbers and file.

 

[sengsational]

What's the rush? Only if you gave Feds too much to begin that I can see. Why would you do that?

Certainly not my idea, but they hold a big check due to my 401k provider refusing to cut a check without a 20% withholding.

Fidelity defaults everything to non-qualified until they have been provided the official information. So you definitely do not want to use this information. But the split can be easily estimated from prior-year returns.

No, it's preliminary, and it's not complete and doesn't have qualified dividends for mutual funds nor foreign tax credits.

Ok, That page at Fidelity is just fiction. I used last years' split on the small dividend...I'll probably be accurate to the dollar.

As to the status of my eFile, the status on the return is still pending (same as the moment I hit enter a couple of days ago). But they still have 88 minutes to make their promised 48 hour target. Let's just say I'm not holding my breath.

 

[braumeister]

Your postal carrier will grace you with a Form SSA-1099.

And if you don't have it by about the end of January you can get a replacement by logging into your account at the My Social Security website.

 

[Walt34]

And if you don't have it by about the end of January you can get a replacement by logging into your account at the My Social Security website.

That's useful to know, thanks.

 

[aja8888]

I haven't paid my 4th quarter estimated tax payment yet, plus, I get a couple of K-1's and they don't show up until late March.

 

[Matthew J]

I'll file a extension and then file in October. That gives me time to decide if I want to pull back my Roth IRA conversation.

Sent from my XT1031 using Early Retirement Forum mobile app

 

[Danmar]

I also track after tax spending. I treat taxes paid or withheld as an offset to income. This works very well for income sources that are tax withheld, like pensions. Other sources, like divs or cap gains do create a bit of a mismatch between years, but I keep close track of this in another spreadsheet. When expecting a refund (unusual) I file around the middle of March. Our taxes aren't due until Apr 30.

 

[JoeWras]

I really can't fill most of mine until I get my 1099 composites so I know what divys are qualified or not. So no real point to rush it. I fill it bit by bit as it comes in. I will wait a bit before they are due in case they have corrections. Most years they will adjust some numbers. I should be close on my tax estimates and quarterly payments.

maybe not optimal..

Bingo. A few years ago E*Trade sent me multiple corrections. After two years of being forced to amend, I now fill everything out early, and then wait until April 14 to file. Even then, I got a correction once in late April (yes, past the 15th) from E*Trade.

I'm no longer in a hurry. I found filing amended (along with state!) is way too much a pain. I also fired E*Trade. They were too slow in passing along some ETF corrections. I also sold that particular ETF.

 

[REWahoo]

Even though I run the risk of having to file an amended return, I don't like to delay beyond early February since the risk of identity theft increases the longer you delay filing.

 

[Ronstar]

I might go back to doing my own taxes. The only weird thing I have is a K1 from a real estate LLC that sold its last property and is now done. Last year the CPA charged me $115, so I won't save much by doing it myself, but I'll gain a better understanding of my taxes.