1099 Delivery Reminders
Most Schwab 1099s should be available online by the end of this month (February 27).
- Reportable interest, dividends, realized gain/loss (cost basis), and IRA distribution details are included on your 1099 tax documents coming directly from Charles Schwab. Please provide all your 1099s to your tax professional for preparing your 2025 tax return.
- If you have established online access to Schwab Alliance, all tax forms should be available under “Accounts” on the “Statements” page where you can access a 1099 dashboard. From here you can print, save, or electronically send 1099s to your tax professional.
- Also, if you wish to download your account information directly into TurboTax or H&R Block you will need to use your Schwab user ID and password and then acknowledge permission to share information with the third-party software.
- We fully understand the frustration corrected 1099s often cause as neither JNBA nor Schwab can control this delay in adjusted information. With global e-commerce, companies often must modify reported interest, dividends, or capital gain information. As a result, by law, those companies are required to pass these revised figures on to the appropriate parties, in this case, Schwab.
SOME ACCOUNTS MAY NOT RECEIVE A TAX FORM
Charles Schwab & Co., Inc. will apply Internal Revenue Service (IRS) “de minimis” rules to determine if a tax form needs to be produced for the 2025 tax year. This will decrease the amount of tax forms generated and allow for fewer corrections. A form will be produced for an account only 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 for 2025.
Reporting Treasury Interest on Non-IRA Accounts
As a reminder, and as appropriate, we have strategically invested cash in Treasury funds to generate additional interest. A key benefit of interest earned from Treasury funds is that in some states it is not reportable on state tax returns. In these situations, Treasury interest should be excluded from your state tax return to prevent state-exempt interest being subject to taxation.
The most common Treasury fund used as our primary money market is the Schwab U.S. Treasury Money Fund. We encourage you to work closely with your tax professional to help ensure accurate reporting of any Treasury interest in non-IRA accounts. Please reach out to your JNBA Advisory Team with any questions.
Please note JNBA is neither an accountant nor an attorney and no portion of the above should be construed as accounting or legal advice. All legal and accounting issues should be addressed with a legal or accounting professional of your choosing. Due to various factors, including changing market conditions and/or applicable laws, the content may no longer be reflective of current opinions or positions. Moreover, you should not assume that any discussion or information contained in this blog serves as the receipt of, or as a substitute for, personalized investment advice from JNBA Financial Advisors, LLC. Please see important disclosure information at jnba.com/disclosures.
