Tax season is officially upon us, and we want to keep you informed as important tax documents begin arriving.
1099 Forms
Charles Schwab has already sent out the first-round of 1099 forms and will continue issuing them in waves through February 27th. This staggered delivery is normal and helps ensure accuracy as custodians finalize year-end reporting. If you have Schwab online/mobile access, you can view the estimated delivery date for each Schwab account. If we reach March 2nd and you have not received your 1099, please contact our office so we can assist.
Qualified Charitable Distributions (QCDs) - age 70 1/2 or older only
In April of 2025, the IRS announced that custodians will be required to report QCDs differently than general IRA distributions within the 1099 form. This is a good change. However, because this was announced mid-year they are not requiring custodians to do this until next year (on 2026 tax forms).
Schwab has confirmed that for 2025 tax reporting, QCDs will not be shown separately from general IRA distributions. Your tax preparer will record QCD’s as they have in previous tax years.
Schwab have also confirmed that for those of you that make QCDs through an IRA checkbook, these will not be separated out even on the 2026 forms. We will do our best to track these transactions throughout the year but also recommend you track your QCDs so accurate information can be provided to your tax preparer at tax time.
If you need help identifying your QCD amount for tax reporting, please call our office—we are happy to help.
As always, don’t hesitate to reach out with any questions. We’re here to help make tax season as smooth as possible.
Sincerely,
The Team at Presper Financial Architects