Tax Season is Around the Corner — Here’s Information to Help You Prepare

Eagle Wealth Management |
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Weekly Market Commentary



 

Taxes are complicated enough, so we’re here to help answer your most common questions and bring clarity to this tax season. 

What you need to know:

  • Key tax season dates.
  • Your FAQs answered.
  • Learn how to access your Charles Schwab and SEI Private Trust Company tax documents online.
  • Remember to send us a copy of your completed 2022 tax return.
In a hurry?  Download our infographic to save this information for later.
 

Important dates


Keep in mind that although deadlines are published by the IRS, most companies file for (and are normally granted) extensions for reporting client tax information.  It’s also possible you’ll receive corrected 1099s from your financial services company as late as March 31st.  

For most taxpayers, we recommend waiting until at least February 28th, to deliver 1099s to tax preparers.  You can start gathering and providing other tax-related documents sooner, but hold off on the 1099s, especially if you have a history of receiving corrected 1099s.
 

1099-R Availability

These forms show reportable distributions from IRAs and 403(b)’s during the 2022 tax year.
  • Mid-January — Charles Schwab 1099-R and 5498 tax forms are available online and mailed to investors.
  • January 20th — SEI Private Trust Company 1099-R tax forms are available online and mailed to investors.

Composite 1099 Availability

Non-retirement account tax documents (sometimes referred to as Composite 1099s) mailings are released in staggered waves as they become available.

First Wave Second Wave Final Wave  
Tuesday, April 18th — Deadline for filing individual and most trust income tax returns.
 

Frequently asked questions

 
Where can I see all my accounts?  Your accounts are available on your personal financial Wealthview website.  (Tax documents are not available here)
 

Personal Financial Website Login


Can I access my Charles Schwab and SEI tax documents online?  Yes, and it’s easy to do! 

Charles Schwab – Log in to Schwab Alliance to access the 1099 Dashboard.  Check out our tutorial here for instructions.  If you’re a new user of Schwab Alliance, then follow this guide to register.
 

Schwab Alliance Login


SEI – Log in to AccessMyPortfolio.com.  Check out our tutorial here for instructions.  If you’re a brand-new user of the SEI website, then follow this guide to register.  
 

SEI Client Login


When will my non-SEI/Charles Schwab tax documents be available?  You should expect to receive most tax documents in the mail by February 28th. 

What is Form 1099-R?  Form 1099-R is used to report designated distributions of $10 or more from pensions, annuities, profit-sharing and retirement plans, IRAs, and insurance contracts.

What is a Composite 1099 tax form?  Charles Schwab and SEI Private Trust Company will sometimes refer to the tax forms 1099-DIV, 1099-INT, 1099-B, and 1099-OID as Combined or Composite 1099 tax forms.  These are for non-retirement accounts.

What is Form 1099-Div?  Form 1099-DIV is used by banks and financial institutions to report dividends and other distributions to taxpayers and to the IRS.

What is Form 5498?  If you made contributions (deposits) to your IRA account for the tax year, you’ll receive Form 5498 detailing those contributions in May. Form 5498 is for informational purposes only.  You are not required to file it with your tax return. 

Which tax documents will I receive for my account?

For individual, joint, and trust investment accounts, you’ll receive a Composite 1099 including details of dividends paid (Form 1099-DIV) and security sales (Form 1099-B), if there were any of these transactions in your account for that tax year.  If there weren’t any security sales or dividends paid into your account, you won’t receive a Form 1099.

For retirement accounts, including Traditional, Roth, and SEP IRAs, you’ll receive a Form 1099-R only if a distribution (withdrawal) was made during the year.  If you made no contributions to your IRA for the year and took no distributions, you will not receive tax documents for your retirement account.


FYI

 
Account Contributions — Contributions must be made prior to filing your tax return.  The last day to make an IRA, Solo 401k, SEP IRA, etc. contribution is April 18th, but we ask clients to plan on making contributions by April 11th to ensure they’re processed and received on time.
 
New Charles Schwab Investors — If you moved accounts to Schwab in late 2021 or anytime in the 2022 calendar year, you’ll likely receive a 1099 from SEI and Charles Schwab.  Be sure you have both before filing your taxes.
 
Qualified Charitable Distributions (QCD) — QCDs are reported as a normal distribution on IRS Form 1099-R for any non-inherited IRAs.  The Form 1099-R will NOT make any mention of your QCDs.  It is your responsibility to report directly to your tax preparer.  You can learn more here.
                           

We’re Here to Help

 
As your family financial CFO, we’re here to help make tax season less stressful.  If you’re not sure if you’ve received all your tax documents, need assistance with online account access, or have any other questions, please give us a call.  
 
Warm regards,
Your Eagle Wealth Team
 
P.S.  Please remember to send us your 2022 tax return once it’s complete.
 

 

Create A Morning Routine That You Love


The first hour of your morning can dictate your productivity for the rest of the day, so it's worth investing in a morning routine you love. How do some of the most successful people spend the first few hours of their day? Here are a few tips:
  1. Don't check your email for the first hour of your workday.  Spend time thinking about things you're grateful for; this will help set a positive tone for your day.
  2. Mark Twain famously said that if you eat a live frog first thing in the morning, you've got it behind you for the rest of your day.  Consider doing your most challenging work first thing in the morning.
  3. Do some light movement, such as going for a walk, stretching, or yoga.
What are some of your favorite morning rituals?
 
Tip adapted from Fast Company8
 
 


The Week on Wall Street

Stocks added to their early 2023 gains amid a busy stream of mixed corporate earnings results and conflicting economic data.

The Dow Jones Industrial Average gained 1.81%, while the Standard & Poor’s 500 added 2.47%. The Nasdaq Composite index rose 4.32% for the week. The MSCI EAFE index, which tracks developed overseas stock markets, increased by 1.14%.1,2,3

 

Stocks Advance

With the backdrop of earnings reports and conflicting economic data, stocks climbed higher on cooling inflation, continued economic resilience, and fourth-quarter corporate earnings results that, while underwhelming, did not appear as bad as many had feared.

There was enough new economic data to support both the “recession is coming” and the “soft landing” camps. It was corporate results and continued labor market strength, along with a solid, if weakening, fourth-quarter Gross Domestic Product (GDP) growth number, however, that raised investors’ hopes that a potential recession may be mild and likely pushed out to later in the year.

 

GDP Report

The U.S. economy expanded at a 2.9% annualized rate in the fourth quarter, slightly exceeding consensus estimates of 2.8% but down from the third quarter’s 3.2% growth rate. Consumer spending, which accounts for over two-thirds of GDP, rose 2.1%. Increases in private inventory investment, government spending, and nonresidential fixed investment also contributed to the fourth quarter’s growth. Weakness in housing and a drop in exports subtracted from the quarter’s result.4

Beneath the headline number, the personal consumption expenditures price index (the Fed’s preferred measure of inflation) rose 3.2%. That was lower than the third quarter’s 4.8% increase, though it remains above the Fed’s 2% inflation target rate.5 

THE WEEK AHEAD

KEY ECONOMIC DATA


Wednesday:  Federal Open Market Committee Announcement. Job Openings and Turnover Survey (JOLTS). Institute for Supply Management (ISM) Manufacturing Index. Automated Data Processing (ADP) Employment Report.
Thursday:  Factory Orders. Jobless Claims.
Friday:  Employment Situation. Institute for Supply Management (ISM) Services Index.

 

Source: Econoday, January 27, 2023
The Econoday economic calendar lists upcoming U.S. economic data releases (including key economic indicators), Federal Reserve policy meetings, and speaking engagements of Federal Reserve officials. The content is developed from sources believed to be providing accurate information. The forecasts or forward-looking statements are based on assumptions and may not materialize. The forecasts also are subject to revision.

COMPANIES REPORTING EARNINGS


Monday:  Principal Financial Group, Inc. (PFG).
Tuesday:  Advanced Micro Devices, Inc. (AMD), Pfizer, Inc. (PFE), Caterpillar, Inc. (CAT), General Motors Company (GM), McDonald’s Corporation (MCD), Amgen, Inc. (AMGN), United Parcel Service, Inc. (UPS), Stryker Corporation (SYK).
Wednesday:  Thermo Fisher Scientific, Inc. (TMO), Humana, Inc. (HUM), TMobile US, Inc. (TMUS).
Thursday:  Apple, Inc. (AAPL), Amazon.com, Inc. (AMZN), Ford Motor Company (F), Alphabet, Inc. (GOOGL), Qualcomm, Inc. (QCOM), Bristol Myers Squibb Company (BMY), Merck & Co., Inc. (MRK), Eli Lilly and Company (LLY), Honeywell International, Inc. (HON).  
Friday:  Cigna Corporation(CI), Regeneron Pharmaceuticals, Inc. (REGN).

Source: Zacks, January 27, 2023
Companies mentioned are for informational purposes only. It should not be considered a solicitation for the purchase or sale of the securities. Investing involves risks, and investment decisions should be based on your own goals, time horizon, and tolerance for risk. The return and principal value of investments will fluctuate as market conditions change. When sold, investments may be worth more or less than their original cost. Companies may reschedule when they report earnings without notice.

 

Disclosures and Footnotes

Any companies mentioned are for informational purposes only, and this should not be considered a solicitation for the purchase or sale of their securities. Any investment should be consistent with your objectives, time frame, and risk tolerance.

1. The Wall Street Journal, January 27, 2023
2. The Wall Street Journal, January 27, 2023
3. The Wall Street Journal, January 27, 2023
4. CNBC, January 26, 2023
5. CNBC, January 26, 2023
 

Investing involves risks, and investment decisions should be based on your own goals, time horizon, and tolerance for risk. The return and principal value of investments will fluctuate as market conditions change. When sold, investments may be worth more or less than their original cost.

The forecasts or forward-looking statements are based on assumptions, may not materialize, and are subject to revision without notice.

The market indexes discussed are unmanaged, and generally, considered representative of their respective markets. Index performance is not indicative of the past performance of a particular investment. Indexes do not incur management fees, costs, and expenses. Individuals cannot directly invest in unmanaged indexes. Past performance does not guarantee future results.

The Dow Jones Industrial Average is an unmanaged index that is generally considered representative of large-capitalization companies on the U.S. stock market. Nasdaq Composite is an index of the common stocks and similar securities listed on the NASDAQ stock market and is considered a broad indicator of the performance of technology and growth companies. The MSCI EAFE Index was created by Morgan Stanley Capital International (MSCI) and serves as a benchmark of the performance of major international equity markets, as represented by 21 major MSCI indexes from Europe, Australia, and Southeast Asia. The S&P 500 Composite Index is an unmanaged group of securities that are considered to be representative of the stock market in general.

U.S. Treasury Notes are guaranteed by the federal government as to the timely payment of principal and interest. However, if you sell a Treasury Note prior to maturity, it may be worth more or less than the original price paid. Fixed income investments are subject to various risks including changes in interest rates, credit quality, inflation risk, market valuations, prepayments, corporate events, tax ramifications and other factors.

International investments carry additional risks, which include differences in financial reporting standards, currency exchange rates, political risks unique to a specific country, foreign taxes and regulations, and the potential for illiquid markets. These factors may result in greater share price volatility.

Please consult your financial professional for additional information.

This content is developed from sources believed to be providing accurate information. The information in this material is not intended as tax or legal advice. Please consult legal or tax professionals for specific information regarding your individual situation. This material was developed and produced by FMG Suite to provide information on a topic that may be of interest. FMG is not affiliated with the named representative, financial professional, Registered Investment Advisor, Broker-Dealer, nor state- or SEC-registered investment advisory firm. The opinions expressed and material provided are for general information, and they should not be considered a solicitation for the purchase or sale of any security. Copyright 2022 FMG Suite.