2016 Tax Time Checklist

Read This Before You File!

We recommend that you provide a copy of this article to your CPA so that he or she can better assist you. Feel free to print the PDF file provided above.

Below is a list and description of the documents you or your CPA will need to prepare your taxes this year with respect to your CWM managed accounts.

IMPORTANT: Please keep in mind that CWM MUST receive all requests for tax documents no later than April 13th. Requests are processed in the order received and those received after the 13th of April, 2017 may not completed by the April tax filing deadline.

□   1099-Composite (Non-Retirement Accounts)

Examples of non-retirement accounts:

  •  Individual Account
  • Joint Account
  • Trust Account
  • Transfer on Death Account
  • UTMA/UGMA Account
  • Corporate/LLC/LP Accounts

The 1099-Composite includes dividends, interest, buys, sells (i.e. gain/loss schedule), and management fees for the year. As a result, this document is all that you or your CPA needs in order to report on your non-retirement investment accounts.

You will receive this document around mid-February from Schwab by mail or in electronic format and it will be available to you online at Schwab.com. If you do not remember your Schwab.com login, please contact Schwab directly at 800-515-2157 to retrieve this information (Schwab will not release your login information to CWM).

More often than not, a corrected 1099-Composite will be issued as late as the middle of March, so we strongly recommend that you DO NOT formally file your taxes before April 1st.  If a corrected 1099 is generated, this is not due to any action on the part of CWM or Schwab; rather, the various fund companies that produce the 1099s dictate the changes and create the need to issue a corrected 1099.

If you are working with one of our recommended CPA partners (below) they will already have access to your Schwab 1099 documents and there will be no need for you to bring additional copies with you to your meeting:

□   Management Fees

Your total tax-deductible management fees for 2016 can be found near the back of the 1099-Composite under the heading “Summary of Fees & Expenses”.

If you are paying any portion of your management fees with a credit card, that portion will not be included on the 1099-Composite so you will need to account for it separately. Please refer to your past CWM credit card billing statements for this information. Copies of standard 2016 CWM billing statements are also available to you in your ClientView portal under the “Portfolio Reports” tab. If you need assistance with accessing your ClientView portal, please call us at 425-778-6160 or email us at TaxInfo@CWMnw.com.

□   1099-R (Retirement Accounts)

Examples of retirement accounts:

  • IRA, Rollover IRA, SIMPLE IRA, SEP
  • Roth IRA
  • Individual 401(k)
  • 401k, 403b, 457
  • Defined Benefit Plan

1099-Rs are produced when a withdrawal is made from a retirement account. If you took money out of a retirement account in 2016, you or your CPA will need to account for it using the 1099-R.

You will receive your 1099-R around the end of January from Schwab by mail and it will be available to you online at Schwab.com. If you do not remember your Schwab.com login, please contact Schwab directly at 800-515-2157 (Schwab will not release your login information to CWM).

□   Year-End Gain/Loss Report (Retirement Accounts)

You do NOT need this report to do your taxes.

Schwab has started sending out a Year-End Gain/Loss report for retirement accounts. The purpose for these reports in unclear, since you are not taxed annually on any gains or losses in your IRAs, or other retirement accounts, which grow tax-deferred. You DO need to report any deposits or withdrawals made to your retirement account within the given tax year.

It is also important to note that this gain/loss report does NOT provide you with enough information to determine how your account actually performed, as it ONLY lists the realized gains and losses (i.e. positions that were bought and sold) that occurred during the 2016 tax year. What the gain/loss report does NOT include are any unrealized gains/losses (that is, gains or losses on positions that have yet to be sold), nor does it report any dividends or interest received.  As a result, the gain/loss report does not give you the full picture as to how your retirement account(s) actually performed.
Please refer to your consolidated 2016 Year-End performance reports in order to review actual retirement account performance.

□   5498 (Retirement Accounts)

Examples of retirement accounts:

  • IRA, Rollover IRA, SIMPLE IRA, SEP
  • Roth IRA

5498s are produced when a contribution is made to a retirement account.  If you made a contribution to a retirement account in 2016, then you or your CPA will need to account for it.  There is one exception here; if you are putting money into a retirement plan such as a 401k or 403b through work, you do not need to account for it unless you are self-employed.

Since you have until April 18th (or later in some cases) to make a contribution to a retirement account for the prior year, 5498s are not mailed until the second week of May. As a result, it is very important that you know what your retirement account contributions were for 2016 when you or your CPA prepares your taxes. You can find this information by reviewing the “Transaction History” for your account on Schwab.com.

□   K-1s

K-1s are essentially gain/loss schedules for limited partnerships and member LLCs. Some of you will receive K-1s from investments made in companies that require K-1 reporting. If you receive a K-1, you or your CPA will need to account for them on IRS Form 990-T.

While you can receive K-1s for retirement accounts, most of the time you will not need to account for them on your tax return. The general rule is that unless Box 20 has Code ‘V’ and is greater than $1,000, you do not need to bother reporting them for a retirement account. For non-retirement accounts, you need to account for all K-1s regardless of what is in Box 20.

Unfortunately, K-1s do not have the same mailing deadline as 1099s. The K-1 mailing deadline is March 31st, but many companies do try to have them mailed no later than March 15th. Do not file your taxes until you are certain that you have received all K-1 documents.

If you are invested with any of the following companies below, and have not received your K-1 by March 31st, please contact us and we will help retrieve them for you.

  • US Energy
  • Cynergy Emerging Growth Fund
  • Mewbourne Oil
  • Walton International

If you are unsure about whether or not you will receive a K-1, please e-mail TaxInfo@CWMnw.com or call the office at (425) 778-6160 / (800) 268-2440.


CWM does not offer tax advice. Consult your CPA for specific tax questions.

This article has been prepared and distributed for informational purposes only and is not a solicitation or an offer to buy any security or investment or to participate in any trading strategy. Information is based on sources believed to be reliable; however, their accuracy or completeness cannot be guaranteed. This information is not intended to be a substitute for specific individualized tax, legal or investment planning advice as individual situations will vary. For specific advice about your situation, please consult with a financial professional. Past performance is no guarantee of future results.

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