Learn brokerage account tax filing rules, including when consolidated 1099s are due, and the deadline for the tax year 2017.
Tax filing fact or myth? "Your brokerage account's 1099 form for 2017 must be in the mail by January 31, 2018."
Say what? That’s right, a consolidated 1099 form should be postmarked by February 15, according to the Internal Revenue Service (IRS). Actually, that's been the case for a while now—the 1099 mailing deadline changed starting with the 2008 tax year.
Previously, firms were required to have these forms validated and postmarked by January 31. But that’s no longer true. With the complexity involved in producing consolidated 1099s, the extended deadline gives brokerage firms more time to validate and avoid corrections required when funds reallocate their distributions or when securities are purchased in January during an open wash sale window.
At TD Ameritrade, we use a phased approach to get forms out quickly while minimizing the number of corrections. If your portfolio includes certain types of securities such as mutual funds and real estate investment trusts (REITs), which may reallocate or reclassify their distributions in January and February, your form may be issued in a later phase to attempt to avoid corrections.
Note: This change affects 1099s that are combined with a 1099-B, a form that summarizes the proceeds (gains and losses) of stock transactions. Standalone 1099s are still held to the 1099 deadline of January 31.
Can there be a benefit to waiting another two weeks? Absolutely—a lot can happen in two weeks! For example:
But don't assume that if you get one corrected form, you’re in the clear. More corrections could come. Firms are required to produce corrected forms in a timely manner, so if the funds in which you invest reallocate in September (and yes, this happens!), you will receive a corrected tax form.
Every effort is made to send tax forms out earlier for accounts that have little chance of correction. For instance, perhaps an investor didn't have any trades in December that would be impacted by trading activity the following January, or the securities they hold don’t typically reallocate distributions. Still, there's no guarantee a corrected form won't be issued.
Suppose it’s February 4 and your broker indicates your tax form will be mailed out by the 15th. Rest assured, this is within the IRS 1099 deadline; the firm didn't get an extension just to make you wait. After all, brokerages don’t like issuing corrections any more than you like receiving them.
Once you're logged in to tdameritrade.com, go to My Account > Tax Center. Check out the Tax Document Calendar for due dates and other information on forms TD Ameritrade generates.
You can also Ask Ted®. You’ll find this button along the top navigation bar. If he doesn’t know the answer to your tax question and it’s during standard business hours (Monday–Friday, 9 a.m. to 5:30 p.m. ET), use our Chat feature to speak with a Tax Services Representative.
TD Ameritrade does not provide tax advice. We suggest you consult with a tax-planning professional with regard to your personal circumstances.
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