Navigating the Tax Maze: A Comprehensive Guide to Documenting Your 2023 Tax Return

Featured Post | Published at Feb 13, 2024, 7:00 PM in wealth management by Nick Maratta


As we move through the year, tax season is getting closer, and it's time for individuals and businesses to dig into the details of their finances. To file your 2023 tax return properly, you need to carefully think about and collect the right documents. In this blog post, we'll help you by providing insights and guidance on the important documents you'll need to handle the complexities of tax preparation.

Both TD Ameritrade and Schwab adopt a phased approach in generating and distributing tax forms to clients. Clients transitioning from TD Ameritrade to Schwab can anticipate receiving 1099s from both institutions, with the forms arriving on separate dates. The 1099 from TD Ameritrade will encompass pre-conversion reportable activity, while the 1099 from Schwab will encompass post-conversion reportable activity. All these forms will be accessible on Schwab Alliance's Statements page. Please note that you may receive tax forms from both companies if you previously held an account at TD Ameritrade in 2023.

Some accounts may not receive a tax form.

Schwab and TD Ameritrade will apply Internal Revenue Service (IRS) "de minimis" rules to determine if a tax form needs to be produced for the 2023 tax year. This will decrease the amount of tax forms generated and allow for fewer corrections.

A form will be produced for an account only when at least one of the following conditions are met:

  • The account receives at least $10 in dividend income.
  • The account receives at least $10 in interest, royalties, or original issue discount (OID) income.
  • A Form 1099-B reportable transaction occurs in the account (e.g., a sell or a buy to cover)..

If the account did not include any of these activities, a 1099 will not be generated for 2023. Please note that you will only receive a 1099-R on a retirement account if you had a distribution.