When to Expect Your 1099
If you receive income from investments, dividends, education savings plans, or contract work, you’re undoubtedly familiar with IRS Form 1099. By the time April 15th rolls around, you might have even collected a hefty stack.
However, what might be less clear is when you should expect to receive them. Some insist that the deadline is January 31st. Or maybe it’s February 28th? Schwab typically starts sending tax form late in January and finishes up mid-February. In practical terms, the fuzzy deadline does not matter much, after all, you owe taxes on the income, even if the 1099 doesn’t arrive at all.
Businesses, financial institutions, and even local governments have any number of reasons for why they might not send Form 1099s as early as you expect to receive them. Some are still balancing their books until the last minute, and certain investment funds may take longer to reconcile overseas holdings.
Whatever the reason, this can cause a fair bit of consternation as you may feel pinched between waiting for the mail and looming tax deadlines. Here are a few things you can do while you wait:
● Make a list of Forms 1099 you expect to receive.
Proactively tracking expected Form 1099s may help you avoid surprises or, worse yet, neglecting to file one with your taxes.
● Check the online portal, if available.
In most cases, a digital copy of the expected Form 1099 may be available up to a week before you receive it in your mailbox. Here’s where to access your documents in your online Schwab account.
● Watch out for corrected Forms 1099.
Sometimes, the Form 1099 you receive may be an estimate instead of the final version. Read any accompanying material and check for a watermark.
● Keep your address current.
Make sure you give the sender the right information to send your Form 1099 to the correct address.
● Look for errors and report them ASAP.
You might not have much time to correct any errors, so be sure to open, read, and act on your Form 1099s as soon as you receive them. Not sure how to interpret your 1099?
● The IRS gets a copy, too.
Don’t forget that the IRS receives a copy of all Form 1099s, even if yours did not arrive. If you forget to include one in your filing, you’ll likely receive a letter asking you to account for the funds you neglected to include.
● Be cautious with draft 1099s.
Some financial institutions may send preliminary versions of Form 1099 labeled as "draft." These are not final and should not be used for tax filing. Be sure to wait for the official version, which will be marked as final, to avoid errors or amendments to your tax return. Check any accompanying materials for clarification.
Navigating tax season can be challenging, especially when it comes to tracking down and making sense of all your Form 1099s. Schwab provides helpful tools such as this video and pdf guide to explain the details on your 1099 forms. If you’re unsure which forms to expect, why they matter, or how they impact your financial plan, don’t hesitate to reach out. We’re here to help you make sense of the process and provide guidance tailored to your needs.