Preparing for 2024 Tax Filing: A Comprehensive Roadmap to Your Tax Documentation

Introduction:

As we progress through the year, tax season is fast approaching, and it's time for both individuals and businesses to take a close look at their finances. To file your 2024 tax return accurately, you'll need to thoughtfully compile and organize the necessary documents. In this blog post, we'll provide you with essential insights and guidance on the key documents required to navigate the complexities of tax preparation for 2024.

Charles Schwab’s initial Form 1099 Composite production timeline

“To ensure timely tax reporting while limiting corrections, Schwab produces Form 1099 Composite in three separate production runs, depending on the types of investments held, the reclassification status of dividends received and when trading has occurred in the account. Because many corrected 1099 forms are triggered as a result of securities with reclassified income or wash sales with deferred losses resulting from January purchases, Schwab uses two additional production runs to limit the amount of corrected forms sent to clients”

Some accounts may not receive a tax form.

Based on IRS “de minimis” rules, forms are only produced for an account when at least one of the following conditions are met:

• The account receives at least $10 in dividend income.
• The account receives at least $10 in interest, royalties, or original issue discount (OID) income.
• A Form 1099-B reportable transaction occurs in the account (e.g., a sell or a buy to cover).

If the account did not include any of these activities, a 1099 will not be generated. Please note that you will only receive a 1099-R on a retirement account if you had a distribution.