Your Money
Many tax forms get corrections. Corrected 1099s, for example, are very common, and the last correction cycle begins on March 22 this year!
Corrections happen because mutual and exchange-traded funds are complex vehicles with many underlying investments. Before determining annual income, fund companies must gather information from all those underlying investments, consolidate them, and provide that information to Charles Schwab. (This isn't unique to Schwab; the same thing happens at Merrill, Fidelity, Vanguard, etc.) The process of assigning income between interest, dividends, qualified dividends, capital gain distributions, and return of capital adds to the complexity. Schwab then totals the values of all your investment income and presents it to you in tax form 1099. If any investment company makes an error along the way, or if there are changes in classification on the type of underlying investment income, a revised 1099 form gets issued.
A little patience will save you some grief and maybe a little money. Here are the tax document deadlines for Charles Schwab and an article with seven reasons not to file your tax return early.
Charles Schwab 1099 Dashboard: www.schwaballiance.com
- First Production Run - February 2, 2024
- Second Production Run - February 16, 2024
- First Correction Cycle - March 1, 2024
- Second Correction Cycle - March 15, 2024
- Third Correction Cycle - March 22, 2024
If you're expecting a K-1 from a partnership interest, you should file for an extension because final K-1 statements may arrive as late as October.
7 Reasons Not To File Your Taxes Early, Even If You'll Get A Refund
by Robert Wood
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