Schwab 2016 Tax Form Calendar

What’s New for the 2016 Tax Year

In an effort to provide clients quicker access to their tax forms, our primary custodian, Schwab Institutional has sent us the following bulletin. For those of you that use Schwab or advise Schwab clients, this may be useful to you.

2016 Tax Forms Available Earlier

Schwab will begin mailing the 2016 1099 Composite and Year-End Summary tax forms in early February. Please consider that given the sizable volumes of these production runs, it may take several days for clients to receive their paper tax forms. The securities in clients' accounts will determine when the 1099s are produced. Below are the dates for both of our production runs as well as details around the securities that impact the production of clients’ 1099s. 

Production Details

Form 1099s are scheduled for two production dates, depending on the types of investments clients hold. 

February 1st to February 15th production run

Accounts for which we have all necessary tax information including: 

• Stocks
• Options and Cash Deposit Interest

1099s in the first run will be available on Schwaballiance.com starting February 1st.

*Note: Investors who made sales in December or who bought to cover short positions in December will receive Form 1099 in mid-February.

February 15th to February 28th production run

Accounts that contain at least one investment for which the issuer can’t provide information in time for the earlier mailing. Examples include:

•  ETFs and Mutual Funds 
•  Fixed Income 
•  REITs, UITs, WHFITs 
•  Suspect Securities US and Foreign stocks that have been reclassed in the past

1099s in the second run will be available on Schwaballiance.com starting on February 15th. 

(Clients will receive information regarding the mailing dates in their December statements delivered in early January.) 

Corrected Form 1099s

If clients need corrected 1099s, they will be sent beginning on February 28th. 

There are two reasons an investor may receive a corrected Form 1099: 

1. One or more issuers of the securities held by the investor may not have provided the investor’s tax information before Schwab mailed Form 1099.
2. Certain income (e.g., dividends, capital gains) on securities an investor holds may need to be reallocated by the issuer after the IRS Form 1099 mailing deadline.

If we receive updated information from issuers of securities held after the original Form 1099 has been mailed, Schwab is required to send a corrected tax form. Please be aware that the issuers of your securities may reclassify income anytime after we’ve mailed your original Form 1099. Investors may receive more than one Corrected 1099.  

New Electronic Notification

Clients who have elected to receive printed form 1099s will be notified via email when their form 1099s have mailed. They will also be provided a link to the Statements & Reports tab where they will be able to access their tax forms. (Clients who receive electronic delivery of their form 1099s will continue to receive an email as soon as their forms are available online.)

Faster Access to Tax Downloads

Clients who receive their 1099 on schwaballiance.com February 1st will no longer have to wait to download their 1099 into TurboTax or H&R Block. Schwab will now allow access to these tax software providers the same week you receive your 1099. 

Clients can now download their 1099 data as a .csv file. Select the Export function from their Statements & Reports/Tax Forms page next to your 2016 1099 Composite. 

Please remember that Schwab and Athena Private Wealth do not provide tax advice. We recommend that clients consult a tax advisor about the possibility of receiving a corrected Form 1099 so they can avoid having to redo their taxes or submitting an amended tax return.