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Schwab sent out an email saying corrected 1099s were being sent out.

As a retired fee only CFP, I wish I could recommend someone locally, but your client can go to the Certified Financial Planner Board of Standards website to find someone in the area and then research their qualifications/reviews/ disciplinary record/ and any other recommendations. I think your client would do best sitting down with someone in person. For my own needs I use someone at Fidelity locally as a point person, and he can draw on the expertise of others in his office. In my case, just like your client, they have to know exactly what are their goals, needs, and most importantly, risk tolerance. The advisor will do a good job if he listens to the client and not try to just do what is best for the advisor. Strictly fee only, no commissions is a good way to go in my opinion.

And consider has the check cleared!

And I'm so happy to have an extra February day.......Is tax season actually over on April 15 this year?!?!?!?!???

Hey, Frog, don't you love it when the statement shows custodial fees of $7,500 but the client whines about your $750 fee?!

He will have penalties each year the excess remains in the IRA unless he corrects it by withdrawing with earnings now, is able to recharacterize to traditional, or until the year he distributes enough through a normal ROTH distribution to eliminate that penalty on the form 5329. Give the client his options because at over $400 in penalty each year, he may want to correct it. With my last one of these, the excess into his trad IRA was only $500 and client opted to leave it in because the penalty was only $30 and a distribution would be taken the following year and would eliminate the penalty anyway.

Gotta remember to ask those two questions more often! Although, I've started using the term Deposit to make it very clear that I will very likely ask for more before we're done.

I think you need to look at what the AMT NOLs have been over the years to see if they are available to be used against current year income. I would need to do some refreshing of my own since it has been a while since I have never done a farm NOL and I am speaking from my faulty memory. Don't take this as gospel, just a thought. Tom Longview, TX

I have about a dozen clients who were in TD Ameritrade/now Schwab. They have all received TD 1099s and separate Schwab 1099s based on the timeframes before and after the platform transfer. The purchase actually happened in 2020, but the TD Ameritrade accounts were transitioned the first half of 2023. My understanding is that they transitioned the accounts in 'batches' rather than all at once, so I could see clients having different 1099 scenarios with respect to transfer dates, etc.

We do what Frog does. Been with our gal a very long time, and she's seen us through the ups and downs of the market with our retirement monies and with our investment accounts, and now with our RMDs, too. This client has little to nothing in cash/securities. She buys a house, lives in it with her fiancé, perhaps does some fix up (fiancé's in construction), mostly profit by buying in improving markets, and sell in a couple years. Both high income from day jobs. My client works for a company with a great defined-benefit pension building for her. (Not familiar with fiancé's finances, because he was my client for only one year when he started a side gig at the very beginning of Covid. His construction biz rebounded quickly with outdoor projects in FL during Covid.) They've lived in FL for years, but want to sell that house and move to SC in an area they've identified for their needs. This time both will purchase house together. High earning years for both, but starting to look to how things will change in retirement, or how things could change if the one in construction has an injury/illness. The houses they purchase are not expensive compared to Greenwich, CT, where she lived when she first became my client (NYC commuter back then). So they do have disposable cash, over and above the house purchased for cash and her building pension and whatever her fiancé has. They want to be more diversified and intentional than just their house buy/sell method. Or, they might expand their RE holdings. They want some guidance in their long-term planning, but it might not lead to traditional portfolio of financial investments at a brokerage. Therefore, their request for a FA who has no profit motive in their next steps, just charges for planning services.

Are the EINs for the reporting payer the same on both 1099s? Is either marked corrected, amended, or have an issue date that indicates a more recent form? Yes, Schwab bought out Ameritrade during the year, but your post above still does not explain why the 1099-DIV in your original post reported qualified dividends in excess of the total ordinary dividends.

I prefer someone who charges based on a percentage of portfolio value. That way they prosper if you prosper, and suffer if you suffer. The sure-fire way for rewards to follow performance. Generally a percentage over 2% is too much. I have seen so many statements showing $1500 as dividend income, and custodial fees of $1800. Customer is being duped.

Did he contribute for 2023 but during 2024? Then he could work with his broker to make it a 2024 Roth contribution instead. Or, 2023 non-deductible Traditional IRA, followed by a back-door Roth. Or, remove with earnings by the due date. (I think. It's late, and I'm tired.)

Capital Planning Advisors is the firm. Larry Hansen is who she will want to ask for. Office Phone: (916) 286-7650. Tom Longview, TX

I had one client who, for 6-7 years, got corrected forms in mid-May that were always major corrections. That client got put on extension & we filed after corrected forms arrived.

Just finished talking to the executor. It was all from the deceased tp's deceased cousin who had no other heirs. Not items of income, but rather inheritance. And no estate tax implications because the total estate was under the estate limits by far more than the piddling couple thousand of the check.

It must be the use of solar power for operation, likely with some sort of small batt, is the key.

"Could" is the key. Means it is fluff, unless the purchaser or their reps can find the method of eligible credit. I "could" win the lottery - but I never play.

Manufacturers/Installers are required to give them the relevant documentation as to the credit they qualify for. I have had several clients in the past come to me with their tax stuff anticipating a big tax credit, promised by their salesperson. but they had no documentation. When I had them call the company who did the installation they were told no credit was available. Of course their salesperson no longer worked there.

Escheat is never clean. I am trying to clean up some from a few years back. (Royalties from oil/gas via tribal rights.) The one thing I have learned is planning is poor, and those who may get left with the clean up need to be proactive, in advance, and those who do not have an estate plan are doing a HUGE disservice to their heirs. Likely just an asset with a balance, more money for the bank account, is the most reasonable, unless this is the miracle case where there are documents (not likely, hence the escheat).

@Catherine Q1 - Do you have my retainer check? Q2 - can you give me a call when you have my retainer check? Seriously, I don't know where to start. Any paperwork at all? My first thought is not income, because if I lost something and someone returns it to me, I don't have a taxable event unless I took a deduction at some point for the loss. The state is saying "Hey, this belongs to you, we found it and are giving it to you". Not a gift, property that the state says you already own. Tom Longview, TX

Unless you have clients in San Diego....another emergency extension until June 17th. Tom Longview, TX

Did those clients have Ameritrade accounts that paid dividends, or were they Schwab investors all year and not ever with Ameritrade?

We have had clients bring in statements from both Schwab and TD Ameritrade. We have not seen just two Schwab statements

He is retired. Gets to contribute as a spousal IRA from his wife's sch C earnings. They will not be able to contribute in 2024 because she closed her real estate business in 2023 and will only have retirement income and no wages or SE income to qualify. Tom Longview, CA

My bad. Deductible IRA's need to be added back for MAGI in this case. If the higher 2023 income is a one off he can also keep the money in, pay the penalty and then use 2023 contribution as a 2024 contribution. The penalty is calculated each year the overage remains in account so the only way this may make sense is if 2024 income will be low enough to be within the higher 2024 income limits. It is rather strange that someone at this income level is not covered by a retirement plan at work.

Yes, he can withdraw the contribution and what it earned by due date without penalty. Next year he will receive a 1099R and the earnings will be taxable but no penalty. When you say they does it mean MFJ? Would spouse maxing traditional make AGI low enough to keep Roth?

That brokerage may still be that messed up; elderly clients passed on, which stopped the issue for them.

Low Cost or Cadillac? If you need a Cadillac I know a guy in Sacramento CA who is the smartest financial guy I have ever met. But not cheap. Not even close to cheap. Tom Longview, CA

Nah; they'll likely still claim they "never received" the 1310. They're really awful about those (less so with Form 56, if that is needed, but still not good). I wish you & your client the best, but don't be surprised - and warn the client, just in case, so they don't think you did something wrong.

I had the same thought. But right now, I just hope they get it under control and the people up in the panhandle can get back to their property and start rebuilding. Tom Longview, TX