Scarlet Oak Financial Services’ Tax Center aims to help you with resources you may need for the tax season ahead. We hope the general information about deadlines, charts on key numbers, and custodial account holder FAQs might make this tax season a bit less stressful.
Scarlet Oak Financial Services can’t give tax advice and will always recommend that you speak with an accountant, CPA, or tax advisor for specific questions concerning your tax situation. But, if you need assistance finding tax help, we have a referral list of trusted tax professionals that our clients and we have worked with through the years. Please contact Faye at firstname.lastname@example.org; she will be happy to send you a list of contacts.
Federal Tax Filing Season Has Started
The IRS announced that the starting date for when it would accept and process 2022 tax-year returns was Monday, January 23, 2023.
Tips for making filing easier
To speed refunds and help with tax filing, the IRS suggests the following:
- First, gather your necessary documents, such as W-2s, 1099s, and other income documentation.
- Ensure your deductions and credits, such as charitable donations and medical expenses, are documented.
- Check the tax law changes for the current year. Make sure you’re aware of any deductions or credits you might be eligible for by going to irs.gov. Gather the documentation for these new deductions or credits you might not have previously been tracking.
- Set aside time in your schedule to complete your taxes. It might be wise to engage a tax professional who can help with the process and maximize your savings. In addition, these professionals can help you navigate an ever-expanding tax law landscape that changes yearly.
- Ensure you have received Form W-2 and other earnings information, such as Form 1099, from employers and payers. The dates for furnishing such information to recipients vary by form, but they are generally not required before February 1, 2023. You may need to allow additional time for mail delivery. Check for errors on these documents.
- Try to file electronically and use direct deposit. Electronic filing allows you to check whether your return was accepted within hours of filing and your refund status after 24 hours. Filing by mail can take 6 to 8 weeks to process your return.[i]
Key Filing Dates
Here are several important dates to keep in mind:
- January 13. IRS Free File opened. Free File allows you to file your federal income tax return for free [if your adjusted gross income (AGI) is $73,000 or less] using tax preparation and filing software. You can use Free File Fillable Forms even if your AGI exceeds $73,000 (these forms were unavailable until January 23). You could file with an IRS Free File partner (tax returns could not be transmitted to the IRS before January 23). Tax software companies may have accepted tax filings in advance. Check out your options here. [i]
- January 23. IRS began accepting and processing individual tax returns.
- April 18. Deadline for filing 2022 tax returns (or requesting an extension) for most taxpayers.[ii]
- June 15. Deadline for Filing 2022 tax return if you are a U.S. citizen or resident alien residing overseas or are in the military on duty outside the U.S., on the regular due date of your return. Though your taxes, if you owe them, are due by April 18, penalties will be charged.[iii]
- October 16. Deadline to file for those who requested an extension on their 2022 tax returns. Taxes due are also due by April 15, or penalties will apply even if filing a return on the six-month extension.[iv]
Awaiting processing of previous tax return?
The IRS is attempting to reduce the inventory of prior-year income tax returns that have not been fully processed due to pandemic-related delays. As a result, taxpayers do not need to wait for their 2021 return to be fully processed before filing their 2022 return.
Surprised you owed money?
It is always a good idea to ensure you pay your taxes throughout the year with the correct withholding on your paycheck.
Especially if you have
- had an increase in your salary.
- Started a second job.
- Are you earning income from a sideline like driving Uber or selling goods online
- started a business.
- Had a lifestyle change like marriage, divorce, birth or adoption of a child, home purchase, retirement, or filed chapter 11 bankruptcy.
- Are you not claiming a dependent that you have in previous years? [i]
To check your withholding, use this estimator calculator.
The IRS encourages taxpayers seeking a tax refund to file their tax returns as soon as possible. The IRS anticipates most tax refunds being issued within 21 days of the IRS receiving a tax return if the return is filed electronically, any tax refund is delivered through direct deposit, and there are no issues with the tax return. To avoid delays in processing, the IRS encourages people to avoid paper tax returns whenever possible. You can check your refund status here.
Additional Financial Important Dates throughout the 2023
Download a simplified version of these key numbers below.
Individual Income Tax Planning
Federal Income Tax Rate Schedules
(Individuals, Trusts, and Estates)
- 2023 Single Taxpayers
- 2022 Single Taxpayers
- 2023 Married Filing Jointly And Surviving Spouses
- 2022 Married Filing Jointly And Surviving Spouses
- 2023 Married Individuals Filing Separately
- 2022 Married Individuals Filing Separately
- 2023 Heads of Household
- 2022 Heads of Household
- 2023 Trusts And Estates
- 2022 Trusts And Estates
- Adoption Assistance Programs
- Earnings Subject to FICA Taxes (Taxable Wage Base)
- Health Insurance Deduction for Self-Employed
- Qualified Transportation Fringe Benefits
- Section 179 Expensing
- Small Business Tax Credit for Providing Health-Care Coverage
- Special Additional First-Year Depreciation Allowance
- Standard Mileage Rate (Per Mile)
Federal Tax Information
How To Access Tax Documents Online if you have never signed on to your online account.
Advisors and their firms do not receive clients’ tax forms.
You can log in to the TD Ameritrade site on Scarlet Oak’s Client Portal Page or www.advisorclient.com.
- If you have never logged in, you will also need to go to the following link: advisorclient.com.
- Once on the page below, the “Log in to your account.” Window, you will see, “First time here? Set up my profile.” If you click “Set up my profile,” it will walk you through the process. If you have any issues with the setup, please do not hesitate to contact our administrative team; Melinda can be reached at 800.871.1219 Ext. 1 or email@example.com.
To see tax forms, go to Accounts > Consolidated View > Documents and click on Tax Forms. Or download 1099s, 1099-Rs, and 5498 tax forms at Account Tools > File Downloads > Tax Documents.
How to find your tax documents if you already have an online account.
You log on to the TD Ameritrade site on www.advisorclient.com.
Advisors and their firms don’t receive paper copies of clients’ tax forms. To see tax forms, go to Accounts > Consolidated View > Documents and click on Tax Forms. Or download 1099s, 1099-Rs, and 5498 tax forms at Account Tools > File Downloads > Tax Documents.
Are sales reported on a trade-date or a settlement-date basis?
The IRS requires that we report all sales on a trade-date basis on Form 1099-B. Therefore, sale transactions with a trade date in 2022 and a settlement date in 2023 will be reported on your 2022 Consolidated 1099 Statement.
I've received information about management fees deducted from my account by my advisor. Is this information reported to the IRS?
No. The information is provided for informational purposes only and will not be reported to the IRS.
What is the tax treatment of market discount?
Market discount is always treated as ordinary income, regardless of the type of bond.
What information from the summary pages will be reported to the IRS?
TD Ameritrade will report from page one only the 1099-DIV, the 1099-MISC, and the regulated futures contracts from the 1099-B. From page two, TD Ameritrade will only report the 1099-INT. All other summary sections are provided for informational purposes only. Please keep in mind 1099-OID, 1099-INT, and 1099-B detail will be reported to the IRS.
What is Original Issue Discount (OID), and why is it included on my 1099?
OID is the excess of a debt obligation’s stated redemption price at maturity over its issue price (acquisition price for a stripped bond or coupon). Whether you receive any cash payments during the year, we are still required to report any OID.
You are required to recognize your accrued OID as it pertains to the number of bonds you own and the number of days you held these bonds during the year and continuing over the life of the obligation. Additional information can be found in the IRS publication 1212, “List of Original Issue Discount Instruments” at www.irs.gov or by calling 1-800-TAX-FORM.
Is my "margin interest paid" reported on my 1099?
No. Margin interest is not a reportable item on your 1099. You will find the year-to-date margin interest figure on your December account statement. However, for your convenience we do provide the margin interest charged on the Consolidated Forms 1099 Expenses section.
Why aren't my Master Limited Partnership (MLP) distributions included on my 1099?
MLP information is reported on a separate K-1 form by the partnership. The K-1 form is mailed in mid-April by the MLP. The partnership should be contacted directly if the K-1 was not received.
When counting the lines on the 1099-B it appears that line 4 is being skipped. Where is this line?
Line 4 on the 1099-B is used for reporting federal income tax withheld on sales. If there has been no withholding, this line will not be relevant to your 1099-B.
What is meant by "Loss not allowed" in line 7?
This line indicates whether a corporate action that occurred in the account allows for a gain to be recognized but prohibits the investor from recognizing a loss.
How am I able to determine which securities on my 1099-B are covered and which are noncovered?
Covered tax lots will have “COVERED tax lots” in line 5 and “Basis is reported to the IRS” in line 3. Noncovered tax lots will have “NONCOVERED tax lots” in line 5 and “Basis NOT reported to the IRS” in line 3.
Why is my bond premium broken down into four categories on my 1099-INT?
TD Ameritrade breaks the bond premium down to four categories to give greater transparency to the tax payer. This information may be useful for you and your tax advisor. However, brokers only report the total bond premium for covered lots found on line 11.
There is a lot of information in the details of the 1099-B. How do I determine which information is being reported to the IRS?
The information that is being reported to the IRS on the Consolidated 1099 will have a line number next to the heading. If there is no line number next to the heading the information is being provided for informational purposes only.
How can I distinguish OID on non-US Treasury obligations and OID on US Treasury obligations on my 1099-OID?
A number 1 next to the total would indicate when an amount is for non-U.S. Treasury instruments. A number 8 next to the total would indicate when an amount is for a U.S. Treasury instrument.
What do lines 1f & 1g represent?
Line 1f represents the code which corresponds with the adjustment amount reported in line 1g. These codes are W for wash sale loss disallowed, D for market discount, and C for collectible.
Why don't the amounts on my Consolidated 1099 agree with those on my December monthly statement?
Among other things, dividend payments paid by corporations, mutual funds, and Real Estate Investment Trusts (REITs) made to you during the current calendar year may be reclassified in the following January, which leads to a difference in figures. The Consolidated 1099 is the authoritative document for tax reporting purposes to the IRS.
I am a non-resident alien for tax purposes and received a 1099 and should not have. What should I do?
If you believe you should not have received a 1099 form because you are a non-resident alien for tax purposes, please contact our administrative team; Melinda can be reached at 800.871.1219 Ext. 1 or firstname.lastname@example.org,
to report the error. Any supporting documentation that you may have will be helpful to us. We will make every effort to research the matter quickly and issue a corrected Consolidated 1099 if needed.
Now that I've received my 1099, can I go ahead and file my taxes?
If you have received all your tax form documents, including those from other institutions, and you do not detect any errors, you should be able to file your tax return. *However, be advised that certain investment instruments, such as mutual funds and Real Estate Investment Trusts (REITs), may reallocate payments (e.g., from long-term capital gains to short-term capital gains) after the original 1099 has been issued. This may result in a Corrected 1099 being issued.
*Scarlet Oak Financial Services does not provide tax advice. It is suggested that you seek the advice of a tax planning professional concerning your personal circumstances.
What are the other tax forms not reported on my Consolidated 1099?
- 1099-R Distributions from retirement plan accounts
- 1099-Q Distributions from Coverdell ESA (Education Savings Accounts)
- 1042-S Payments subject to withholding, such as interest, dividends, royalties, pensions, and annuities for non-resident aliens
- 2439 Undistributed long-term capital gains
- 5498 Individual contributions and rollover contributions to all IRAs (including SIMPLE and SEP IRAs), employer contributions, and rollovers on SIMPLE IRAs
- 5498-ESA Contributions and rollover contributions made for you for the prior tax year for Coverdell ESAs (Education Savings Accounts). For more information about Coverdell ESAs, see IRS Pub 970, Tax Benefits for Education
- K-1 Partner’s Share of Income. Credits and Deductions reported directly by the partnership
Note: If you are eligible to receive one or more of these forms, they will be provided in separate mailings.
Why does my "additional information" section list ordinary gain/loss?
Brokers must report whether any gain or loss from covered transactions is short-term, long-term, or ordinary. However, the 1099-B does not include a section for ordinary income, so TD Ameritrade has listed it in the “additional information” column.
Where can I find information regarding buy and sell transactions for options?
Index options information is provided in the 1099-B section, under Regulated Futures Contracts. Cost basis reporting is now required for options on or after January 1, 2016. Cost Basis Information for covered option sales is reported on the 2022 1099-B.
What should I do if I believe an error exists (such as my Social Security number or an incorrect dollar amount) on my Consolidated 1099 Statement?
Please contact our administrative team; Melinda can be reached at 800.871.1219 Ext. 1 or email@example.com.
Any supporting documentation that you may have will be helpful to us. We will make every effort to research the matter quickly and issue a corrected Consolidated 1099, if needed.
I need help reading my 1099s.
State Tax Reporting
How can I determine what portion of my money market dividend is exempt from state taxes?
Shareholders of tax exempt or government money markets will receive an “Important State Tax Information” brochure in February 2023. Please note: the TD Asset Management USA Funds, Inc. (TDAM) Municipal Portfolio is federally tax-exempt, and will not be included on your 1099.
TD Ameritrade and TD Asset Management, Inc. are affiliated through their parent companies.
Is any of the information on my Consolidated 1099 reported to any state?
Yes. TD Ameritrade participates in the Combined Federal State Program with the IRS. The IRS shares the 1099 information with participating states. However, some states require us to provide additional information such as tax exempt interest, which is not reported on the Consolidated 1099. For more specific information regarding state taxes and specific tax reporting requirements, contact your state’s tax authority.
What is a wash sale?
A wash sale occurs when a security is sold at a loss and, within a period of 30 days before or 30 days after the sale, the identical or “substantially identical” security is reestablished.
Under such circumstances, that loss will be “disallowed” and may not be considered in calculating a taxpayer’s losses for income tax purposes.
How will wash sales be reported on my Consolidated 1099? Will it be sufficient for my tax preparation?
The cost basis regulations require that TD Ameritrade only report wash sales to the IRS on “covered” securities, and then only if both the purchase and sale of those securities occur within the same account with identical securities (same CUSIP number). This means that if you have more than one account and/or purchases substantially similar securities, the information we are reporting to the IRS will not be sufficient for preparation of your taxes.
TD Ameritrade will be reporting to the IRS the amount of disallowed loss on the 1099-B issued for that sale. In addition, we must take into account the previous amount of disallowed loss in determining the adjusted basis of the replacement securities when reporting the eventual sale of the security. All of your trades remain subject to the wash sale rules, regardless of the accounts in which the transactions were performed.
This requirement applies to managed accounts, self-directed accounts and even IRAs. Therefore, it is important to note that wash sale information on the 1099-B reported by TD Ameritrade may not match your final Schedule D forms when dealing with multiple accounts. In this case, you will need to track your wash sales and recalculate the 1099-B information you are provided from TD Ameritrade (or from another custodian) to arrive at the proper filing information for Schedule D purposes.
You should also be aware that the new 1099-B will include cost basis information in the aggregate, if more than one tax lot was used in a transaction. The supplemental statement we will be furnishing you contains annual activity that will include detailed lot information for every trade. Gain and loss information will also be displayed within the 1099-B section of the Consolidated Form 1099 for information purposes only. Gain and loss information is not furnished to the IRS.
How will I know which of my dividends are subject to the lower capital gains rates?
Dividends subject to the capital gains rates, known as “Qualified Dividends,” will be reported separately on Form 1099-DIV, Box 1b. However, although the dividend paid was classified as “Qualified,” you must determine if the dividend qualifies for the lower capital gains tax rate based on the time period which you held the security.
In general, for common stock, you must have held the stock for a period greater than 60 days during a 121-day period beginning 60 days before the ex-dividend date. For more information regarding your holding period, please consult with your tax advisor.*
*Scarlet Oak Financial Services does not provide tax advice. It is suggested that you seek the advice of a tax planning professional concerning your personal circumstances.
Are my money market dividends included in my gross dividends?
Generally, yes. However, if you received income from a TD Bank USA, N.A. MMDA cash vehicle, and/or TD Bank USA FDIC Insured Deposit Account, it will be reported on Form 1099-INT rather than form 1099-DIV.
TD Ameritrade and TD Bank USA, N.A. are affiliated through their parent companies.
Are dividends reported by record date or payable date?
Most dividends are reported by payable date. However, the IRS allows certain securities such as mutual funds and Real Estate Investment Trusts (REITs) to declare a dividend in October, November, or December with a payable date in January of the following year, these are called Spillover Dividends and are reportable in the tax year the dividend was declared.
However, if you received a dividend from a mutual fund or REIT in January with a declaration date in October, November, or December of the previous year, that amount will appear on your 1099-DIV form for the previous year, not the current year.
How do I handle dividend charges in my TD Ameritrade account?
There are various scenarios for which you may have received a dividend charge to your account. For example, if you maintained a short position in your account and the company issued a dividend, this would result in a dividend charge.
Your monthly statement may be used as proof that a dividend charge has occurred. You may be able to offset your dividend charges with dividend payments received on your tax return. Dividend charges are listed in the Supplemental Summary of your Consolidated Forms 1099 for your convenience. Please consult with your tax advisor regarding your specific situation.
I received information from a mutual fund company indicating that some of the income I received in 2022 was Return of Capital (ROC) and/or Capital Gains. My 1099 shows all 2022 income as ordinary dividends. What should I do?
Dividend payments paid by corporations, mutual funds, and Real Estate Investment Trusts (REITs) made to you during the 2022 calendar year may be reclassified. Some or all of your dividend distributions may have been reclassified as ROC or Capital Gains by the respective corporations or mutual fund company.
If you suspect that some of your dividends qualify as ROC or Capital Gains and your 1099 is incorrect, please contact our administrative team; Melinda can be reached at 800.871.1219 Ext. 1 or firstname.lastname@example.org to determine whether a Corrected 1099 should be mailed to you.
I own shares of a foreign company that paid dividends but withheld taxes from payment to U.S. investors. How is this reported on my Consolidated Form 1099?
We have reported the gross dividend and separately listed the foreign tax withheld. The gross amount (the net amount plus the tax withheld at source) is reported in Box 1a of the 1099-DIV form (“Total Ordinary Dividends”), and the foreign tax withheld is reported in Box 6 (“Foreign Tax Paid”). The amount in Box 6 may be eligible for a tax credit or an itemized deduction.
My monthly statement shows a transaction with the description "Substitute Payment-Gross Up." What does this description represent and where is it reported on my Consolidated Form 1099?
As a result of the Jobs and Growth Tax Relief Reconciliation Act of 2003, the IRS code prohibits the paying of dividends on loaned shares, but instead permits substitute payments of cash for dividends. These payments will appear on Form 1099-MISC, Box 8, of your Consolidated Form 1099 instead of your 1099-DIV form, and are fully taxable at your ordinary income rate.
Because you received a substitute payment in lieu of a dividend—rather than a qualified dividend that may have certain tax benefits—TD Ameritrade provided a refund accommodation, which is reflected as a “Substitute Payment-Gross Up” on your monthly brokerage account statement. The refund accommodation is intended to compensate those clients who were disadvantaged because they did not receive a qualified dividend eligible for the lower tax rate.
Note: The refund accommodation will appear in Box 3 (“Other Income”) of Form 1099-MISC, and is fully taxable at your ordinary income rate. For a more detailed explanation of payments in lieu of dividends and refund accommodations, please contact your tax advisor.
Widely Held Fixed Trusts (WHFIT)
There are IRS regulations covering Widely Held Fixed Investment Trusts (WHFIT). How does that affect me since I held those investments in 2022?
The regulations do not alter the income and expense impact for you as the underlying taxpayer. However, they do require TD Ameritrade to report information supplied by the issuer for inclusion on your Consolidated 1099 Statements. This information is with respect to gross income and expenses and other data necessary to compute adjustments to income.
Tax packets are available to holders of non-mortgage-backed WHFIT securities once this information has been provided to TD Ameritrade by the issuer(s). Information pertaining to where a tax booklet can be retrieved and printed online is displayed for those holders in the 2022 End Notes Section of the Consolidated 1099.
When will TD Ameritrade report information related to WHFIT distributions?
The information source that supplies this data to TD Ameritrade is not required to furnish it until March 15, 2022. Due to the timing involved, you may receive a corrected Consolidated 1099 Statement.
Will Cost Basis Information be reported to the IRS and/or displayed on my 2022 Consolidated Forms 1099?
Possibly, it depends if the investment is a “covered security.” The Emergency Economic Stabilization Act of 2008 includes new cost basis reporting requirements for brokerage firms, expanding the current reporting on IRS Form 1099-B.
As of January 1, 2011, TD Ameritrade was required to report an investor’s adjusted cost basis, gross proceeds and the holding period when certain covered securities are sold. Phase I (tax year 2011) applied to equities—except for those equities acquired through a Dividend Reinvestment Program— acquired on or after January 1, 2011, excluding those acquired via a dividend reinvestment program (DRIP) and regulated investment companies (RIC stocks). Phase II applied to Mutual Funds and Dividend Reinvestment Program (DRiP) enrolled equities acquired on or after January 1, 2012.
TD Ameritrade will report cost basis information to the IRS for covered transactions only. Cost basis reporting is required for options, stock rights and warrants, and less complex debt instruments acquired on or after January 1, 2014 and is reported on the 2016 1099-B.
The 2014 regulations apply to basic debt instruments, such as municipal and corporate bonds, that meet the following criteria:
- Instruments for which there is a single fixed payment schedule and for which a yield to maturity can be determined under IRS Regulation 1.1272-1(b)
- Instruments for which there is an alternate payment schedule and for which a yield to maturity can be determined under IRS Regulation 1.1272-1(c)
- Debt for which yield can be determined under IRS Regulation 1.1272-1(d)
Exclusions – Non-covered securities
The new laws will not apply to all securities. Notable exceptions include:
- Compensatory options
- Broad-based index options that are treated like regulated futures contracts
- Short-term debt (securities issued with a term of one year or less)
- Debt subject to accelerated repayment of principal. This exclusion includes real estate mortgage investment conduit securities (REMICs)
*It should be noted that it is still the taxpayer’s obligation to report the cost basis for any security bought and sold on their tax return.
Why is my cost basis zero for my written options?
The new IRS reporting rules require brokers to report zero basis for written options. Reported proceeds are the proceeds received at the time the contract was written minus the cost to close. This value can be negative.
Coronavirus (COVID)- Related Distribution (CRD)
Why does a coronavirus (COVID)-related distribution or an RMD that was repaid later show on my 1099-R?
If you took a distribution from your IRA in 2022 for coronavirus-related reasons, it appears on your 1099-R as a premature distribution or as a normal distribution depending on your age. Similarly, if you took a required minimum distribution and then returned it into your IRA, it appears on your 1099-R as a normal distribution.
If the coronavirus-related distribution was repaid or if the distribution was returned into your IRA, that repayment will be reported on your 2021 Form 5498. IRA owners can make contributions for 2022 through the tax deadline of April 15, 2023. Therefore, the 5498 forms are sent to you and the IRS in May.
The IRS requires we report the distribution and the repayment. Please note, you may be entitled to a special tax treatment of COVID-related distributions using IRS Form 8915-E. Consult your licensed tax advisor for mor information.
FAQs on the 2020 & 2021 RMDs and the 2020 CRD
Note: This content was provided by our affiliate, Charles Schwab & Co. Clicking this link will take you to a website owned and maintained by Charles Schwab, parent company of TD Ameritrade.
Charles Schwab & Co., Inc. (Schwab) member SIPC is a separate but affiliated subsidiary of The Charles Schwab Corporation.
Unrelated Business Taxable Income(UBTI and 990-T)
What Is Schedule K-1?
Schedule K-1 (IRS Form 1065) is a tax document issued for a partnership’s investors, reporting each partner’s share of the partnership’s earnings, losses, deductions, and credits.
What Is Form 990-T?
Form 990-T is used to report income generated in a tax-deferred account to the Internal Revenue Service (IRS). Form 990-T must be filed if the total positive amounts of Ordinary Gains, Capital Gains Subject to UBTI, and Line 20-V on all Schedule K-1s combined exceeds $1,000 in a tax-deferred account. The capital gains portion is also subject to a debt ratio calculation (see below) that is supplied by the partnership but may not be included with the K1.
TD Ameritrade examines your Schedule K-1s to determine whether a Form 990-T is required, and files the form for you.
What is UBTI?
Unrelated Business Taxable Income (UBTI) is income regularly generated by a tax-exempt entity through taxable activities. This income is not related to the main function of the entity but is needed to generate a small portion of income. UBTI is reported on Schedule K-1. When the combined UBTI from all of an investor’s K-1s exceeds a total of $1,000 in a tax-deferred account, a Form 990-T must be filed and there may be a current tax liability (the investor may owe tax) despite the account’s tax-deferred status. (See below for payment information.)
What is the debt ratio?
The debt ratio represents a partnership’s interest in a property financed through debt. Debt ratio calculation is applied to capital gains, so only a portion of the capital gain/loss is attributable to UBTI. For example, with a capital gain of $100, if the debt ratio is 50%, only $50 of the $100 is attributable to UBTI for tax purposes.
Where can I view my K-1(s)?
For alternative investments (AIs), the K-1 should be provided by the partnership directly. If the partnership sends the AI K-1 directly to TD Ameritrade, we will forward a copy to the current address listed on your account. For publicly traded partnerships (PTPs), you can generally find this information on the partnership’s website or from its vendor. Two common vendors that partnerships use to generate and issue the K1 forms are Tax Package Support and Partner Data Link.
- Tax Package Support: taxpackagesupport.com
- Partner Data Link: partnerdatalink.com
Note: Clicking either of these links will take you to an independent website not affiliated with Scarlet Oak Financial Services.
Scarlet Oak Financial Services is not responsible for the content of such websites.
You will need to register and log in with your name and tax identification number, and your current share quantity, in order to view this form online.
What if I haven’t received my K-1(s) yet?
If you held shares of a partnership in your account at any time during the tax year and you have not yet received a K-1 form, you will need to contact the partnership directly to see why the form wasn’t sent to you. Partnerships typically have their K-1s available before the federal tax-filing deadline, but this can vary depending on a particular partnership’s fiscal year end. If the partnership does send the AI K-1 directly to TD Ameritrade, we will forward a copy to the current address listed on your account.
What if I receive another K-1 later?
It’s essential that we receive all applicable K-1s so we can determine your tax reporting and any possible tax liability. Please send any K-1s you receive to the TD Ameritrade Tax Services Department as soon as possible. You can fax or mail us a copy of your K-1(s), or scan your K-1(s) and attach it to a message you send us through your secure Message Center (log in to your account and go to Client Services > Message Center).
- Mail: TD Ameritrade, Attn: Tax Operations, 200 South 108th Avenue, Omaha NE 68154-2654
- Fax: 866-468-6268
If there’s tax liability, how do I pay it?
As custodian of your account, TD Ameritrade will prepare and make the payment to the IRS (through the Electronic Federal Tax Payment System [EFTPS], as IRS rules require) from your Individual Retirement Account (IRA) that held the partnership shares for the year. If payment is required, we will forward a completed 990-T form to you.
- If the funds are not available in your account, you can sell assets or make a contribution by the payment date. That date will be listed in the cover letter you’ll receive with your Form 990-T.
- We’ll let you know if there aren’t enough funds in your account on the payment date to pay your tax liabilities. You will need to notify TD Ameritrade once funds are available in order to coordinate payment to the IRS. (See below for information about possible penalties and interest.)
- TD Ameritrade will not sell securities to make the 990-T payment unless you tell us to do so.
- TD Ameritrade will not make partial payments. We will still file the form by the deadline but will not make a payment to the IRS unless there are enough funds in the account to pay the full amount.
- The payment is a Non-Reportable transaction and will not be reported on a Form 1099-R.
Why can’t I pay this myself?
Under IRS regulations, TD Ameritrade, as custodian of your IRA, is responsible for submitting the payment from your account on your behalf. TD Ameritrade’s name and address are used on the filing as well as the payment. Ex: TD Ameritrade Clearing Custodian Inc. FBO [Your Name].
Is a payment considered a distribution?
No, the payment is not considered a distribution from your IRA. But if you deposit money to cover this payment, it would be considered a contribution to the IRA.
How can I confirm that TD Ameritrade is filing the correct information?
TD Ameritrade will provide you with a copy of the completed Form 990-T that we are filing, with a window of time for you to review it. If you feel there is a discrepancy or error, please let us know by writing to our Tax Services department through your secure Message Center (login to your account at www.advisorclient.com and go to Client Services > Message Center). Please include the details, and any evidence that the reporting is incorrect. We’ll review this information and make any corrections that are needed.
Will TD Ameritrade take into account prior-year negative UBTI in the 990-T filing?
Yes, we will attempt to look back at previous years to identify negative UBTI (Net Operating Loss, or NOL), if the information is available, in our calculation of current 990-T tax liability. Negative UBTI is not used in determining filing requirements (whether a form should be filed), only in determining whether there is tax liability.
Could I have a tax filing without having a tax liability?
Yes. For determining a filing requirement (whether a 990-T must be filed), only the positive amounts are included in the calculation of gross UBTI. So any negative 20-V or capital loss amounts would not be netted against the positives. However, for tax liabilities (calculating whether you owe tax, and the amount owed), negative amounts are considered as well. These may offset the positives to the point where you owe no tax. TD Ameritrade will send you a 990-T showing zero tax due if this situation applies to you.
Why can’t I use my Social Security Number?
IRS instructions for Form 990-T say that “an IRA Trust never uses a Social Security Number or the trustee’s EIN.” An Employee Identification Number (EIN) must be assigned to the IRA before a filing can be made. This number separates the IRA from your own Social Security Number, which is used in your individual tax return, and will help the IRS separate your individual tax filings from the IRA’s tax filings more easily. TD Ameritrade will request an EIN from the IRS on your behalf.
Will I be charged a penalty(ies) and interest if my filing is made past the tax deadline?
TD Ameritrade will file an IRS Form 8868 to extend your filing deadline for the 990-T form. This will change the deadline from April 15 to October 15 of each tax year. We plan on filing with the IRS in September/October. Please be aware, though, that extending the time to file does not extend the tax payment deadline, and you may be liable for penalties and interest if a payment is late.
What if I transferred my account to TD Ameritrade and need to make a 990-T payment?
You will need to notify TD Ameritrade once funds are available in order to coordinate payment to the IRS.
Where can I learn more about the IRS regulations that govern this?
Where can I learn more about the IRS regulations that govern this? The IRS has provided additional guidance/clarification on how 990-T forms are to be interpreted and filed. The IRS publications that apply to K-1s, UBTI, 990-T, etc. can be accessed at www.IRS.gov:
- IRS Publication 598
- IRS Publication 541
TD Ameritrade and Scarlet Oak Financial Services does not provide tax advice. Clients should seek the advice of a tax planning professional with regard to their personal circumstances.
Broadridge Investor Communication Solutions, Inc. prepared Key Numbers and Tax tips for use by Scarlet Oak Financial Services. Broadridge Investor Communication Solutions, Inc. does not provide investment, tax, legal, or retirement advice or recommendations. The information presented here is not specific to any individual’s personal circumstances. To the extent that this material concerns tax matters, it is not intended or written to be used, and cannot be used, by a taxpayer for the purpose of avoiding penalties that may be imposed by law. Each taxpayer should seek independent advice from a tax professional based on individual circumstances. Scarlet Oak Financial Services provide these materials for general information and educational purposes based upon publicly available information from sources believed to be reliable — we cannot assure the accuracy or completeness of these materials. The information in these materials may change at any time and without notice.
Custodial Account Holder Tax Information was sourced from TD Ameritrade. Content intended for educational/informational purposes only. Not investment advice, or a recommendation of any security, strategy, or account type. Market volatility, volume and system availability may delay account access and trade executions. TD Ameritrade does not provide tax advice. We suggest you consult with a tax-planning professional with regard to your personal circumstances.
TD Ameritrade Tickertape Tax center
TD Ameritrade Unrelated Business Taxable Income (UBTI)