Tax Center
2023 Tax Year Guidance
Timing
If you plan on filing by this year’s April 15, 2024 deadline, we recommend waiting until mid to late February or early March to provide your tax preparer with your tax reports. As investment companies sometimes amend the original Form 1099 reporting of income, filing later helps ensure that you have the most up-to-date forms. Please touch base with your tax preparer to understand their timing preferences as well.
Security
The IRS and other tax groups continue to urge taxpayers who want proactive protection against identity theft when filing their Form 1040s to opt into the IP PIN program. An IP PIN is a six-digit number assigned to eligible taxpayers to help prevent cybercriminals from filing a fraudulent income tax return using your personal information. If the IRS believes you to be a victim of identity theft, it will assign you an IP PIN each year. You can learn about IP PINs here.
2023 IRA and Qualified Retirement Plan Distributions
IRA and qualified plan custodians should issue Form 1099-R to recipients by January 31, 2024 to report distributions and income taxes withheld from 2023 IRA and qualified retirement plan distributions.
2023 IRA Nondeductible Contributions
If a 2023 nondeductible contribution was made to an IRA, Form 8606, Nondeductible IRAs should be filed with your Form 1040. Filing this form will report to the IRS the tax basis amount in your IRA so that the nontaxability of future IRA distributions can be substantiated. Keeping track of the tax basis in an IRA is the responsibility of the taxpayer, not the IRS or IRA custodian. It is the taxpayer’s responsibility to inform their CPA or tax preparer if a nondeductible contribution was made during the tax year.
Qualified Charitable Distributions (QCDs)
Note that Form 1099-R received from the IRA custodian does not disclose the amount of 2023 QCDs from the IRA. We recommend that you share a list of your 2023 QCDs with your tax preparer in order that they are properly reflected in your tax returns. If you directed your IRA to make a QCD in 2023, we will provide you with documentation reflecting distributions that we assisted in processing with you and the custodian. If you issued checks from your IRA for QCDs, we recommend reviewing the check register and providing your tax preparer with these details.
Form 5500
Note that if you are the plan sponsor for an individual (or solo) 401(k) plan that contained over $250,000 in assets as of the last day of the plan year, you are required to file a Form 5500 with the IRS. The filing date is July 31 for plans with a year end of December 31. We recommend that you speak with your tax preparer to confirm this form is being filed in a timely manner. If you directed your IRA to make a QCD in 2023, we will provide you with documentation reflecting distributions that we assisted in processing with you and the custodian. If you issued checks from your IRA for QCDs, we recommend reviewing the check register and providing your tax preparer with these details.
Taxable Account Reporting
Municipal bond fund interest
National municipal bond funds held in your taxable account(s) include bonds issued by many U.S. states. We have included the links below for the municipal bond funds most commonly held in our managed portfolios to assist you and your tax preparer in determining the portion of the interest from the fund(s) that may or may not be subject to state taxes. If you directed your IRA to make a QCD in 2023, we will provide you with documentation reflecting distributions that we assisted in processing with you and the custodian. If you issued checks from your IRA for QCDs, we recommend reviewing the check register and providing your tax preparer with these details.
- Vanguard Intermediate – Term Tax-Exempt Fund Admiral Shares (VWIUX)
- Vanguard Short-Term Tax-Exempt Fund Admiral Shares (VWSUX)
- American Century Intermediate – Term Tax-Free Bond Fund I (AXBIX)
- Nuveen Short Duration High Yield Municipal Bond Fund I (NVHIX)
(Please note that the bond fund is listed as NSDHY on the Nuveen website) - DFA Short-Term Municipal Bond Fund I (DFSMX)
Alternative Investments
If you own an alternative investment, you may receive a Schedule K-1 that reports your share of an entity’s taxable income, deductions, credits, etc. Given the nature of these investments, Schedule K-1s are generally issued later in the year and may necessitate you filing an extension.
Transferred/Closed Accounts
Note that if you closed a brokerage account during 2023, a Form 1099 will still be generated for the closed account. Please check with the custodian of the closed account or your Modera team if you do not receive the document. In addition, if you transferred an account from one brokerage firm to another during 2023, you will likely receive two Form 1099s, one from the former firm and one from the current firm. Please do not hesitate to reach out to your wealth manager if you have any questions.
Custodian Mailing Schedule For 2023 Tax Reports
Our recommended custodians have provided us with the following estimated mailing dates for your 1099s and other tax related documents. These forms may be available on the custodian’s website earlier than the planned mailing date listed here.
Please note that the dates are estimates and that actual mailing dates may vary. In addition, custodians may send corrected form 1099s, which should be forwarded to your tax preparer upon receipt.
Important: Clients who had accounts at TD Ameritrade that are now at Schwab will be receiving two 1099s, one from TD Ameritrade and one from Schwab. This is also true for any other mid-year changes in your custodian.
Charles Schwab
1099 INT, DIV, BROKER PROCEEDS and Related Forms
- 1st Mailing: Begins February 2, 2024
- 2nd Mailing: Begins February 16, 2024
TD Ameritrade
1099 INT, DIV, BROKER PROCEEDS and Related Forms
- 1st Mailing: Begins January 19, 2024
- 2nd Mailing: Begins February 2, 2024
- 3rd Mailing: Begins February 16, 2024
Fidelity Investments
1099 INT, DIV, BROKER PROCEEDS and Related Forms
- 1st Mailing: January 26, 2024
- 2nd Mailing: February 16, 2024
- 3rd Mailing: March 1, 2024
- 4th Mailing: March 12, 2024
1099-R, Retirement Plan, IRA and Annuity Distributions
- By January 26, 2024
