Corrected tax documents

It’s tempting to file your taxes as soon as possible, but filing before you’ve received all your tax documents may result in more work later. This article explains common reasons why a corrected document may be sent to you and steps to take if you’ve received one.

Reasons for corrections to be issued

There are multiple reasons why you may receive a corrected tax document:

  • Income reclassification: A distribution received into your account may have been originally classified as a capital gains distribution, qualified or non-qualified dividend, a return of capital, etc. – but the company that paid the distribution has changed how that income was classified
  • Name or tax identification number change: If you notified M1 that your name or tax identification number (SSN or EIN) is incorrect, we will ask our clearing firm, Apex Clearing, to issue a new tax document that reflects the changes
  • Cost basis correction following a wash sale: A security that was sold at a loss and repurchased within 30 days is subject to wash sale rules, which means that the loss cannot be claimed when filing your taxes. A trade subject to wash sale rules that occurs after your Consolidated 1099 has been delivered may result in a corrected document being issued

Receiving a corrected document

You will be notified directly by our clearing firm, Apex Clearing, if you receive a corrected tax document. Due to the amount of time that companies can reclassify income distributions for, corrected documents could be sent after the tax filing deadline. However, corrected documents are often delivered in March and April, prior to the filing deadline.

If you receive a corrected tax document after you’ve filed your taxes, we recommend directing any questions you have regarding an amended return to a qualified tax professional. 

If you have further questions, please contact us.

 

M1 and its affiliates do not provide tax, legal, or accounting advice. This material has been prepared for informational purposes only. It is not intended to provide, and should not be relied on for, tax, legal or accounting advice. You should consult your own tax, legal, and accounting advisors before engaging in any transaction.

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