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Timing differences in Vanguard’s issuance of 1099s

January 25, 2020
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This cat apparently is expecting something to be delivered by his postal carrier. Many taxpayers share this feline's anticipation this time of year, when annual tax forms are on their way.

The hubby and I have some investments in addition to our retirement accounts. We're hoping these assets will be a nice bonus to the funds dedicated totally to paying for our retirement years.

That means we're among those folks who are waiting on some tax documents so we can file our 2019 tax return.

And we're also among those folks who'll be waiting a bit longer.

Mutual funds vs. brokerage accounts: I have a Vanguard account. And last week, the Vanguard investment group notified some clients (me included) that we may receive two sets of tax forms for 2019, one in January and the other in February.

All of us dual tax statement recipients are folks who moved from Vanguard's mutual fund platform to its brokerage account last year. That includes me.

The 1099s arriving sooner are for Vanguard mutual fund accounts. Brokerage clients will get their tax statements next month. Typically, brokerage tax statements are issued in mid-February.

One step forward, another back: Swapping from the mutual fund platform to the brokerage account simplifies account management for clients, Vanguard spokeswoman Jess Emery told CNBC's Darla Mercado.

It also, however, created an issue for many anxious-to-file Vanguard account owners.

The good news is that by this time next year, Vanguard investors likely will receive one consolidated Form 1099 detailing their holdings.

But this year, it's two 1099s for many and a delay in submitting a tax return.

Mercado's story on Vanguard's dual tax statements earns this weekend's Saturday Shout Out.

Know when to expect tax forms: It's also a good reminder to know not only what forms you'll need to file — my earlier post lists some of the most common tax statements that arrive this time of year — but also how the issuers handle this reporting duty.

In most cases, tax statements are due to taxpayers on Jan. 31.

And in most cases, that's not a problem.

But it's still a good idea to be proactive about your expected tax statements. I must confess I don't always follow my own advice. But then, in my defense, I'm not usually part of the early tax return filing group.

If you're like me, you've probably gotten a lot of emails in recent weeks from investment managers telling you what to expect and when. And if you're also like me, you probably haven't looked at most of them yet.

Open them now. I'm going through my overflowing email box as soon as I post this item.

That way you'll know what tax statements are now available to be downloaded. Or, if they're not, when they will be ready for you digitally or, if you're like the watchful mail-drop cat at the top of this post, headed in paper form to your snail mail box.

Then you can make plans to file as soon as you can, even if that means waiting a while for some of the forms.

You also might find these items of interest:

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TO WRAP UP 2026

It’s over! With October’s extended filing deadline behind us, it is now time to focus on year-end moves to reduce your 2026 tax bill. 

You’ll find ways to do just that on the Tax Tips page (see the More Tax Posts drop-down menu at the top of the blog), as well as the separate tax tip pages for each month, notably October through December. If you’re on the Tax Tips page, you’ll find a monthly list at the end of this column. If you’re on another blog page, you can head straight to the October tips; at the bottom of that tips page you’ll find links to all the other 11 months’ collections of tax advice.

Not to spoil what you’ll find in that tax advice, but it does cover such things as tax deductions for charitable donations, investment moves that could reduce tax due, and ways to max out your tax-favored retirement savings. 

Finally, as the year winds down, things get hectic. There are lots of other things to occupy our time, like the much more fun upcoming holidays. But don’t lose sight of taxes, since timing is key. To be of use, most tax moves must be made by the end of the tax year. That’s Thursday, Dec. 31, which also is the last business day of the year. 

So that you don’t miss that final tax year deadline, also keep an eye on the countdown clock below. It will keep you on top of just how much time is left to make important, tax-saving moves. (Note: I’m in the Central Time Zone, so adjust accordingly for where you live.)

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