2 Tax-Filing Reminders

A 30-second read by Nicholas Scheibner, CFP^®:  As you prepare to file your 2022 taxes, especially if you are thinking of filing your taxes early this year, keep in mind the following:

1. It is important to wait for all your tax documents to arrive before filing.  This is especially true for investment accounts in which 1099s are received.  If you have received “corrected 1099s” in the past, you may choose not to file early to avoid the potential need for an amended return.  Some of these forms come in late February or March.
   
   
2. You will receive a form 1099-R if any money has been moved out of a retirement account.  How much you will pay in taxes will depend on how the money is moved. You want to make sure any movement out of a retirement account is done properly, and the correct code is applied when you file your taxes.  The code will appear in box 7 of the 1099-R.  For some of the most common codes used on the form and what they mean, read our 1099-R-code blog.
   
   For IRA’s, you may also receive a 5498 when you contribute to your account.
   
   How do I correct an “incorrect” code?  Reach out to your custodian.  You may need to file form 5498 in some circumstances.
   
   Source: https://www.irs.gov/pub/irs-pdf/i1099r.pdf

As always, please reach out to you tax-planning professional for advice for your specific tax situation.

Contact your Baron Team for more information on how we can help you with financial planning and investment advice.  

Disclosure: This is a general communication being provided for informational purposes only.  This material is not intended to be relied upon as a forecast, research, legal, tax or investment advice.