Tax form drift

[dixonge]

I thought that getting tax forms electronically would help me file early and get it over with, but it doesn't seem to work like that for retirees. The main source of delays seems to be brokerages. Specifically, Schwab. I don't do any exotic trading, Index funds only, but my best estimate is that I won't have all necessary forms available for filing until late February at the earliest.

 

[DrRoy]

We do electronic through Fidelity, and that timing is typical.

 

[Midpack]

Here’s Vanguard. I’m a Group 2 based on last year. On a side note, I LOVE the consolidated statement, much easier than the various individual forms we used to get.

 

[athena53]

I know. I see articles exhorting everyone to file early and I don't get the last of my forms till sometime in March. It's pretty simple investment stuff like dividends, interest, and realized gains and losses. I prefer to wait for the downloads (UBS and Fidelity, in my case) to make sure I use what the IRS sees.

In the meantime, I have estimates of everything in TurboTax so I can do planning for last-minute year-end actions.

 

[Car-Guy]

In the meantime, I have estimates of everything in TurboTax so I can do planning for last-minute year-end actions.

Me too, however at midnight on December 31, the tax return turns into a pumpkin and you pretty much live with it. (For the most part)

 

[EastWest Gal]

We have to wait for a K1 from Blue Diamond before doing the partnership tax return, which is due March 15th. Blue Diamond doesn’t get their K1s out until early March. It’s nuts. (Pun intended).

 

[Koolau]

I thought that getting tax forms electronically would help me file early and get it over with, but it doesn't seem to work like that for retirees. The main source of delays seems to be brokerages. Specifically, Schwab. I don't do any exotic trading, Index funds only, but my best estimate is that I won't have all necessary forms available for filing until late February at the earliest.

I was thinking there were Fed requirements to send most tax documents to tax payers earlier than late Feb. I could be wrong as I'm no expert. Generally, we only have issues with charities that "forget" to send the required documentation. YMMV

 

[audreyh1]

I know. I see articles exhorting everyone to file early and I don't get the last of my forms till sometime in March. It's pretty simple investment stuff like dividends, interest, and realized gains and losses. I prefer to wait for the downloads (UBS and Fidelity, in my case) to make sure I use what the IRS sees.

In the meantime, I have estimates of everything in TurboTax so I can do planning for last-minute year-end actions.

I just don’t worry about filing early. March is early enough.

I think a bunch of those articles are automatically churned out every year to make people feel anxious so they keep reading articles.

 

[TheWizard]

I keep my taxable account rather simple with an assortment of index funds. So I get a good estimate of year-end dividends by Thanksgiving and none of those nasty CGD surprises.
This makes it easy to figure how big of a year-end Roth conversion to do without exceeding certain AGI limits.

Similarly, I get my tax forms by the end of January typically, so I fire up FreeTaxUSA at that point.
I'm away until mid February this year, so will run the numbers when I return...

 

[PaunchyPirate]

We have to wait for a K1 from Blue Diamond before doing the partnership tax return, which is due March 15th. Blue Diamond doesn’t get their K1s out until early March. It’s nuts. (Pun intended).

Agreed. I have had a single K-1 investment since 2004. I rarely receive the K-1 form before March 31st. Sometimes around April 7th.

However, I was notified a couple months ago that this year I would be receiving the FINAL K-1 as the partnership is being unwound. I am so happy to hear this. I can't wait to file in late February or early March.

 

[pacergal]

Yea, I thought everything was supposed to be mailed out by Jan 31, but our brokerage seems to not get things posted until mid to late February.
So March is when we do taxes, and file electronically.

 

[audreyh1]

Yea, I thought everything was supposed to be mailed out by Jan 31, but our brokerage seems to not get things posted until mid to late February.
So March is when we do taxes, and file electronically.

Brokerages are supposed to have their 1099s postmarked by Feb 15, unless they file for an extension in which case it is March 15.
https://tickertape.tdameritrade.com/personal-finance/brokerage-account-1099-deadline-15591

 

[djsander]

I was hoping when I retired taxes would be easier and done by early Feb. as my MLP units from w@rk would all be sold. However, I got a nice surprise of some final vesting bonus MLP units last year so now one final year of that issue. I sold them all at the time and now the last K1! Hopefully final year of waiting until after mid March to finish up our taxes.

 

[wmc1000]

We have some MLP shares and the K1 doesn't arrive until mid March.

 

[jebmke]

I was hoping when I retired taxes would be easier and done by early Feb. as my MLP units from w@rk would all be sold. However, I got a nice surprise of some final vesting bonus MLP units last year so now one final year of that issue. I sold them all at the time and now the last K1! Hopefully final year of waiting until after mid March to finish up our taxes.

By March there is a reasonable chance that the tax software is correct so that isn't a bad alignment.

 

[jebmke]

Yea, I thought everything was supposed to be mailed out by Jan 31, but our brokerage seems to not get things posted until mid to late February.
So March is when we do taxes, and file electronically.

Brokerages have always had a later timetable. Recently, VG has moved some of the simpler ones up to around the end of January.

 

[athena53]

I just don’t worry about filing early. March is early enough.

I think a bunch of those articles are automatically churned out every year to make people feel anxious so they keep reading articles.

Apparently there's a subset of fraudsters who steal your SSN and then file phony returns and claim refunds. It's a real mess if you send in the genuine return after that. A good argument for filing early.

 

[Koolau]

Agreed. I have had a single K-1 investment since 2004. I rarely receive the K-1 form before March 31st. Sometimes around April 7th.

However, I was notified a couple months ago that this year I would be receiving the FINAL K-1 as the partnership is being unwound. I am so happy to hear this. I can't wait to file in late February or early March.

Sounds very familiar. Family business was sold. Last year was final K-1. I always had to call the accountant handling the INC's financial stuff and get him fired up to do the piddly little j*b of filling it out. My very last thing to wait for was always the K-1.

So this is the first year I won't have to "worry" about a K-1. Also, I no longer have to file 3 tax forms - 1 Fed, 2 state. It's gonna feel really nice (might save me $150 as well.)

Heh, heh, I do miss those occasional dividend checks, but...

 

[audreyh1]

Apparently there's a subset of fraudsters who steal your SSN and then file phony returns and claim refunds. It's a real mess if you send in the genuine return after that. A good argument for filing early.

This is now much less of a problem than it used to be as they have many more checks in place.

And if you aren’t expecting a refund it won’t be as much of an inconvenience.

We don’t sweat this. When we get our forms we file. We really can’t file earlier than late March. Out of our hands.

 

[TheWizard]

Apparently there's a subset of fraudsters who steal your SSN and then file phony returns and claim refunds. It's a real mess if you send in the genuine return after that. A good argument for filing early.

Also a good argument for arranging your finances so that you OWE a few hundred dollars additional when you file your return...

 

[JoeWras]

Don't rush. Amended returns are a pain the behind.

I'll bore you all and once again mention the time I got a 1099 that had 3 subsequent amendments, including one in late April. MLP, K-1, physical metals are "complex" and can really cause grief. For whatever reason, those can go into March. And then get amended later. LOL.