Tax time is quickly approaching. The IRS announced it will begin accepting and processing 2023 tax returns on January 29, 2024.
Here is an update on when you can expect to receive tax documents from Charles Schwab and TD Ameritrade.
Expect Separate 1099 Forms
You will likely receive 1099s from both Schwab and TD Ameritrade for all accounts with taxable activity. They may arrive separately and on different dates.
The tax form from TD Ameritrade will include pre-conversion reportable activity, and the tax form from Schwab will include post-conversion reportable activity. Also, once published, you can access the forms by logging into your Schwab account and visiting the Statements page.
A Phased Approach to Distribution
To ensure timely tax reporting while minimizing corrections, both TD Ameritrade and Schwab use a phased approach to produce and send tax forms to clients.
Schwab produces Form 1099 Composite in two separate production runs, depending on the types of investments held, the reclassification status of dividends received, and when trading has occurred in the account.
The first run is scheduled to be produced and mailed in late January to early February. Eligible accounts for the first production run include those accounts that:
- Had no sales in December
- Do not hold any:
- Certain foreign or domestic stocks
- Real Estate Investment Trusts (REITs)
- Unit Investment Trusts (UITs)
- Original Issue Discount bonds (OIDs)
- Widely-Held Fixed Income Trusts (WHFITs)
- Fixed Income Securities
- Received income where the issuer providing the tax classification has either:
- Provided reclassification information prior to the production run, or
- Not reclassified dividend income in the past three years.
TD Ameritrade produces the Consolidated Form 1099 in four separate production runs. Accounts are included in a production run when the tax reporting information for all positions in the account has been finalized by the tax vendor.
Tax Form Production Schedule
| Available Online By | Mailing Begins | Advisor Files Available By | Tax Software Export Available | |
| TD Ameritrade 1st Production Run |
January 19 | January 19 | January 29 or sooner | January 19 |
| Schwab 1st Production Run |
February 2 | February 2 | February 2 | February 16 |
| TD Ameritrade 2nd Production Run |
February 2 | February 2 | February 12 or sooner | February 2 |
| Schwab 2nd Production Run |
February 16 | February 16 | February 16 | February 16 |
| TD Ameritrade 3rd Production Run |
February 16 | February 16 | February 26 or sooner | February 16 |
| TD Ameritrade 4th Production Run |
February 29 | February 29 | March 11 | February 29 |
Some Accounts May Not Receive a Tax Form
Schwab and TD Ameritrade will apply Internal Revenue Service (IRS) “de minimis” rules to determine if a tax form needs to be produced for the 2023 tax year. This will decrease the amount of tax forms generated and allow for fewer corrections.
A form will be produced for an account only when at least one of the following conditions are met:
- The account receives at least $10 in dividend income
- The account receives at least $10 in interest, royalties, or original issue discount (OID) income
- A Form 1099-B reportable transaction occurs in the account (e.g., a sell or a buy to cover)
If the account did not include any of these activities, a 1099 will not be generated for 2023.
Tax Form Corrections Can Occur
If TD Ameritrade or Schwab receive updated information from issuers of securities after the initial tax form has been mailed, they are required to send a corrected 1099 form with the revisions clearly highlighted. Therefore, it is possible you will receive more than one corrected 1099 form.
As always, the advisors and service team at EKS Associates are available to help if you have any questions or concerns.
