Hopefully your 2023 is off to a great start. As we start the new year and the tax filing deadline for 2022 income taxes approaches, our team at Gentry Private Wealth give you several important reminders in hopes that we can make filing your taxes this year a little easier.
First, it is important to note that Charles Schwab and LPL generate the applicable tax documents for your accounts in waves. The first production run is typically in late January/ early February and the second production run is typically in mid-February. Please keep in mind, though, that your custodian may issue revised tax documents for your accounts after these initial runs if they receive new information from the individual securities that were held within your account.
Depending upon your account preferences, you tax documents will be mailed to you, posted to LPL Account View, posted to Schwab Alliance under the 1099 Dashboard, and/or available on the Schwab Mobile app.
Second, you may receive a Schedule K-1 if you held a specific type of investment (such as a Limited Partnership or Master Limited Partnership) at any point during the previous calendar year. These Schedule K-1s are mailed directly from the partnership entity and not from Charles Schwab or LPL. Some Schedule K-1s are also posted online at https://www.taxpackagesupport.com/. We do not have direct access to these documents. The K-1s are often issued in mid-March but can be issued later if the issuer of the investment files a tax extension.
Typically, if you held positions in any of the following during the previous calendar year, you will receive a Schedule K-1:
Alliance Bernstein Holding, LP Plains All American Pipeline, LP
Energy Transfer Partners, LP Dataminr SPV A Series of Goalvest Master 2021 LLC
GoalVest Pre-IPO Growth Fund, LP Klarna SPV A Series of Goalvest Master 2021 LLC
It is for these reasons that we recommend waiting to file your taxes until late March or early April if possible. If you happen to receive a revised 1099 or Schedule K-1 after you have already filed your taxes, you should reach out to your accountant to determine if an amendment to your return is needed.
We understand that delaying filing your taxes can be inconvenient. Please keep in mind that we carefully select the investments in your portfolio, though. Although some investments (like the Dataminr SPV listed above) generate a Schedule K-1 and may cause you to wait a few months to file your taxes, we feel that the unique investment opportunities they provide outweigh this frustration.
You can also download and print this helpful checklist at the link below, to assist you in gathering your important tax filing documents.