Nauset Wealth Managment

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Category: Taxes

A Quantum of Solace

I’m not one of those people who hates paying taxes. I don’t like writing the check, but I don’t hate it. I guess I bought into the whole death and taxes thing and would rather spend my mental energy on things I might be able to change. However, I am someone who hates preparing to pay my taxes. Even though I work with an accountant I find it painful. I think its taking a weekend of my life to look backwards and the only thing I get out of it is having to write the check.

But what if you could get something for yourself out of all that data collection? Thanks to a prospective client I realized tax prep also covers all the heavy lifting for a building or updating your financial plan. Most people think of building one, (you know you should – see previous post on shoulding yourself) but, it seems like a daunting task to collect all that information. Even if you won’t get to a financial plan until after summer (that was always the distance I kicked the can) you will have most of what you need and maybe you won’t be quite as sullen as 007 come April 15.

Make copies of these tax documents so you are ready for your financial plan:

  • W-2s
  • 1040
  • 1099s
  • Investment or retirement account statements
  • Mortgage summary statement

1099 – Not On Time?

I have never been one to get my tax return done early. Probably because I am one of those people who pay the minimum I have to during the year and then write an unpleasant check to the IRS on April 14. However, a number of clients who are already prepping tax returns have asked us where their 1099s for last year are. Well this year they might be coming a bit later.

According to Fidelity Investments web statement – they send out all 1099 ‘s by 2/15 unless there is an issue with dividends/distribution. Then Fidelity has until 3/15 as the IRS makes dividend determinations. This allows Fidelity to cut down on sending out corrected 1099s. IRS changed 1099 deadline two years back due to the large amount of corrected 1099s. So now a lot of 1099s go out in Feb and March.

You should contact your own investment provider’s website or call your adviser if you are hoping to use this long (and in the Northeast unpleasantly cold weekend) to pay the man.