When to Expect Your 1099

If you receive income from investments, dividends, education savings plans, or contract work, you’re undoubtedly familiar with IRS Form 1099. By the time April 15th rolls around, you might have even collected a hefty stack.

However, what might be less clear is when you should expect to receive them. Some insist that the deadline is January 31st. Or maybe it’s February 28th? For a small fine, the sender might have until late March 31st for certain Form 1099s.

Regardless of the specific filing deadline, it's crucial to understand that you're responsible for reporting all taxable income, even if you haven't received the corresponding 1099 form. The IRS expects you to track and report all income accurately, so don't rely solely on these forms arriving in the mail. If a 1099 is missing by early February, contact the payer to request a copy, or use your own records to report the income when filing your tax return.

Businesses, financial institutions, and even local governments have any number of reasons for why they might not send Form 1099s as early as you expect to receive them. Some are still balancing their books until the last minute, and certain investment funds may take longer to reconcile overseas holdings.

Whatever the reason, this can cause a fair bit of consternation as you may feel pinched between waiting for the mail and looming tax deadlines.Here are a few things you can do while you wait:

• Make a list of Forms 1099 you expect to receive.
  Proactively tracking expected Form 1099s may help you avoid surprises or, worse yet, neglecting to file one with your taxes.
  
  
• Check the online portal, if available.
  In most cases, a digital copy of the expected Form 1099 may be available up to a week before you receive it in your mailbox.
  
  
• Watch out for corrected Forms 1099.
  Sometimes, the Form 1099 you receive may be an estimate instead of the final version. Read any accompanying material and check for a watermark.
  
  
• Keep your address current.
  The IRS will get a copy whether or not you get yours, so make sure you give the sender the right information to send your Form 1099 to the correct address.
  
  
• Look for errors and report them ASAP.
  You might not have much time to correct any errors, so be sure to open, read, and act on your Form 1099s as soon as you receive them.
  
  
• The IRS gets a copy, too.
  Don’t forget that the IRS receives a copy of all Form 1099s, just like you. If you forget to include one in your filing, you’ll likely receive a letter asking you to account for the funds you neglected to include.
  
  
• Be cautious with draft 1099s.
  Some financial institutions may send preliminary versions of Form 1099 labeled as "draft." These are not final and should not be used for tax filing. Be sure to wait for the official version, which will be marked as final, to avoid errors or amendments to your tax return. Check any accompanying materials for clarification.
  

When to get help

Don’t go it alone! Please reach out if you’re unclear on which Form 1099s you might receive, why, or even when. As financial professionals, we may be able to help you understand what you might expect and how it impacts your overall financial wellness. Remember that this email is for informational purposes only and is not a replacement for real-life advice. Consult your tax, legal, and accounting professionals before modifying your tax strategy, and let us know if you’d like to set aside some time to chat.

^{This material was developed and produced by FMG Suite to provide information on a topic that may be of interest. FMG Suite is not affiliated with the named broker-dealer, state- or SEC-registered investment advisory firm.}