Tax Season FAQ
1. When will my tax documents be available?
|Form||Used to Report||Scheduled Mail Date|
|1099-R/1099-Q||Distributions from qualified retirement plans and educational saving accounts||February 1, 2021|
|Consolidated 1099||A consolidated tax document containing forms 1099-B, 1099-DIV, 1099-INT and 1099 MISC||February 16, 2021|
|1042-S||Foreign Person’s U.S. Source Income Subject to withholding||March 18, 2021|
|5498-ESA||Contributions to qualified educational saving accounts||April 30, 2021|
|5498||Contributions to qualified retirement plans||June 30, 2021|
2. Will I receive tax documents by e-mail or mail?
Depending on the delivery setting on your account, the documentation may be delivered by mail or email. If your account has e-delivery setup, you will not be receiving the 1099 by mail. Once the tax document is available, you will receive an email notification on your account to download.
3. Where can I find my tax documents online?
On the desktop platform, login to your account and go to: My Accounts > E-documents > Tax Documents to access your tax documents. Tax documents are not accessible from the app at the moment.
4. Why am I not receiving a Consolidated 1099?
You may not receive a 1099 Consolidated due to the following reasons:
- Accounts with no realized gain/loss in current tax filing year.
- Accumulated dividend(s) in the current tax filing year is less than $10.
- Your account type is an international account.
5. Can I import my Consolidated 1099 form into Turbo tax? How to import it?
All customers with reportable information will be able to import their Consolidated 1099 information directly into TurboTax.
How to import my Consolidated 1099 data into Turbo tax?
- Please click on the following link: Import your 1099 to TurboTax
- If there are more than 500 1099-B transactions per return, then please utilize the desktop software version which can accommodate up to 2,200 1099-B transactions per return.
- If the total number of transactions exceeds these limits, they will not be able to use TurboTax’s import function and may have to utilize other means to file their return.
6. What is wash sale (W/S) allowance?
The Wash-Sale rule was created by the IRS to disallow the loss deduction from the sale of securities if repurchased by a seller or spouse within the Wash-Sale period.
The Wash-Sale period is defined as 30 days before and 30 days after the sale date, totaling 61 days (including the sale date).
If the account purchased identical security within this period, the loss amount will be added to the newly purchased lot.
- Wash sale applies to stocks (long/short), options
- DRIP will trigger wash sale
- Day trade will trigger wash sale
- A wash sale occurs when you sell or trade stock or securities at a loss and within 30 days before or after the sale you:
- Buy substantially identical stock or securities;
- Acquire substantially identical stock or securities in a fully taxable trade;
- Acquire a contract or option to buy substantially identical stock or securities; or
- Acquire substantially identical stock for your Individual Retirement Account (IRA) or Roth IRA.
- If you would like additional information about wash sales please see IRS Publication 550.
7. I made a 2020 contribution to a SEP IRA in Jan 2021. Why is it coded as a 2021 contribution?
IRS requires contributions for SEP IRA to be reported on the Form 5498 for the year they are deposited into the account, regardless of the year for which they are made for.
8. How much can I contribute?
The annual contribution limit for traditional IRAs and Roth IRAs is $6000, or $7000 if you’re age 50 or older.
9. How come some of my positions do not have cost basis reported on the 1099?
Cost basis maybe reported as N/A for one of the following reasons:
- MLP, ETN, some ETFs will receive Schedule K1 from the company itself, not from Apex
- Stocks purchased prior to Jan. 1, 2011, mutual funds, ETFs purchased before Jan. 1, 2012 are noncovered securities, and these will not have cost basis. Clients need to report these on their own.
- Positions transferred to us without any cost basis information.
10. What is Schedule K-1?
The Schedule K-1 is a tax document issued for an investment in partnership interests. The purpose of the Schedule K-1 is to report your share of the partnership's income, deductions and credits. It is issued around the same time as Form 1099 and serves a similar purpose for tax reporting