What to Expect from Your Brokerage at Tax Time

As the number of envelopes labeled “Important Tax Information” pile up in your mailbox, it’s easy to get overwhelmed. Rather than getting discouraged this year, take control of your taxes. When you know what to expect in those envelopes, you can make sure you get the information you need.

Scottrade offers customers several in-person and online educational opportunities to learn more about their tax forms, and the information presented is useful for all investors, no matter which brokerage you’re with.

Form 1099

If you have one or more brokerage accounts, you may be receiving a variety of forms. The most common one is your Form 1099. At Scottrade, the following types of brokerage accounts will typically receive the Form 1099:

• Individual or Joint Brokerage Accounts
• Retirement Accounts (IRAs and Roth IRAs)
• Trusts and Estate Accounts
• Investment Club Accounts
• Partnership Accounts
• Sole Proprietorship and LLC Partnership Accounts
• Custodian Accounts

Reportable Transactions

Keep in mind that even if you have one of these accounts, you will only be issued a Form 1099 if you had reportable transactions in your account in 2011. For non-IRA accounts, reportable transactions include:

• Closing a tax lot (selling a long position or buying to close a short position)
• Interest and dividends
• Taxable corporate actions (e.g., tenders, mergers, cash in lieu of fractional shares)
• Royalty trust income
• Brokered CD sales, and CD redemptions if the certificate matured more than one year after it was issued
• Principal interest on unit trusts and corporate bonds
• Original issue discounts (OID)
• Bond redemptions

If you had one of these reportable transactions in your account, but the aggregate proceeds were less than $10, the proceeds are not reportable, and your brokerage typically will not issue you a Form 1099.

Composite 1099

The Form 1099 is actually a composite form made up of several subsets that each address a specific type of reportable information.

Here is a breakdown of the components of the Composite 1099:

Retirement & Education Savings Accounts

If you have an individual retirement account (IRA), a Roth IRA or a Coverdell Education Savings Account, you will be issued different variations of the Form 1099.

IRAs and Roth IRAs:

• Form 1099-R – Reports distributions, including conversions and recharacterizations
• Form 5498 – Reports contributions, fair market value (FMV)as of Dec. 31, 2011, and required minimum distributions

Coverdell ESAs:

• Form 1099-Q – Reports distributions, transfers out and fair market value as of Dec. 31, 2011
• Form 5498ESA – Reports contributions and transfers in

Mailing Dates

Even though you may want to get an early start on your taxes, keep in mind that brokerages mail your 1099s and other forms on different schedules, depending on IRS mailing dates and information availability. Check with your brokerage for their tax form mailing calendar.

Take Control

When those tax forms start to pile up, don’t just set them aside this year. Armed with the right information about what you should receive from your brokerage firm, you can take control of your taxes and get the information you need.

To learn more brokerage-specific information about your taxes, visit Scottrade’s Tax Guide.

Scottrade does not provide tax advice. The material provided in this article is for informational purposes only and Scottrade is not responsible for any errors or omissions. Please consult your tax software or tax or legal advisor(s) for questions concerning your personal tax or financial situation.

Jaci Devine is a free-lance writer with experience in the financial services industry who specializes in investment education.

SAN DIEGO – Jan. 14, 2011 – SnapTax, the first mobile application that allows people to prepare and file their taxes from start to finish, is now available nationwide for both iPhone and Android from TurboTax® maker Intuit (Nasdaq: INTU).

Introduced last year in California, SnapTax allows taxpayers with simple returns to snap a photo of their W-2 with their mobile phones and then automatically enters the information into their tax return. Taxpayers answer a few basic questions, review their return for accuracy and tap “File Now” to electronically file their federal and state tax returns in minutes.

SnapTax uses optical character recognition (OCR) technology to streamline and simplify tax preparation and shows a running tally of the refund, or taxes owed, every step of the way.

“SnapTax offers an entirely new and unique way to file taxes,” said Barry Saik, vice president of product management for TurboTax.  “Now, millions of taxpayers across the country can do their taxes easily and accurately from their mobile phones in just minutes. SnapTax is the next innovation from TurboTax that revolutionizes how people tackle the annual task of doing their taxes.”

Taxpayers download the mobile app for free and pay when they are ready to electronically file their return. The introductory price of $14.99 includes one federal 1040EZ and one state tax return plus e-filing. SnapTax is available through the Apple App Store and Android Market, or go to SnapTax.com .

To view a SnapTax video and get more information, go to Tax Break, the TurboTax blog. Taxpayers can follow TurboTax on Twitter or become a fan on Facebook.

About TurboTax

TurboTax is the nation’s No. 1 rated, best-selling, do-it-yourself tax preparation software. Available on desktop, online and mobile, TurboTax helps more than 20 million people a year easily and accurately claim every deduction and credit they’re entitled to, so they get their biggest tax refund possible. For more information, visit the TurboTax press room.

About Intuit

Intuit Inc. is a leading provider of business and financial management solutions for small and mid-sized businesses; financial institutions, including banks and credit unions; consumers and accounting professionals. Its flagship products and services, including QuickBooks®, Quicken® and TurboTax®, simplify small business management and payroll processing, personal finance, and tax preparation and filing. ProSeries® and Lacerte® are Intuit’s leading tax preparation offerings for professional accountants. Intuit Financial Services helps banks and credit unions grow by providing on-demand solutions and services that make it easier for consumers and businesses to manage their money.

Founded in 1983, Intuit had annual revenue of $3.5 billion in its fiscal year 2010. The company has approximately 7,700 employees with major offices in the United States, Canada, the United Kingdom, India and other locations. More information can be found at http://www.intuit.com.

Intuit, the Intuit logo and TurboTax, among others, are registered trademarks and/or registered service marks of Intuit Inc. in the United States and other countries.

Automatically transfers more essential tax data into your return for greater ease and accuracy

• TurboTax 2010 eliminates more manual data entry, easily and automatically transferring:
  • Wage, salary, investment and mortgage information – the same data the IRS receives – from more than 250,000 employers and 300 financial institutions, banks and credit unions
  • Tax and personal information from last year’s tax return prepared on different software into the 2010 tax return via PDF
  • Interest income from financial institutions, banks and credit unions by connecting with customers’ Mint.com accounts
• TurboTax tailors the interview based on transferred tax information and information you provide so you see what’s relevant to you

Step-by-Step Guidance

• Guides you through your taxes step by step, like a GPS… with special guidance for first-time users
• Recommends deductions and credits based on your tax situation
• Is up-to-date with all recent tax law changes
• Shows you exactly how much money you are saving with each deduction and credit along the way so you can feel confident you are getting the biggest possible refund
• A summary screen shows you the immediate impact on the bottom line
• Real-time error check immediately catches errors and missed information so you can fix errors as you go
• Bookmarking allows you to flag areas of your return so you can quickly and easily come back later

More answers at your fingertips

• New streamlined and integrated help makes answers easy to get.
• With a single click, TurboTax quickly searches and brings together all the relevant answers from thousands of FAQs, articles and the TurboTax Live Community.
• Get instant answers from other TurboTax users and TurboTax tax experts online from TurboTax Live Community. Last tax season 12 million customers interacted with TurboTax Live Community
• TurboTax includes free customer support. Live tax advice from a TurboTax expert (CPA or enrolled agent) is available for an additional fee.
• Customers on Twitter can tweet questions to @TeamTurboTax for free tax, tech and product support.

Free Audit Support

• Audit Risk Meter identifies common audit triggers – like a home office and rental property – and provides actionable guidance to help reduce your audit risk before you file.
• Free Downloadable Audit Support Center provides step-by-step guidance on everything you need to know in the unlikely event that you are contacted by the IRS.

Fast Refunds

• IRS electronic filing is the fastest, easiest way for taxpayers to receive their federal refunds, in as little as eight days with direct deposit.
• TurboTax customers can also choose to put all or part of their refund on the TurboTax Refund Card, a pre-paid debit card. This is a particularly useful option for the over 20 million Americans who do not have bank accounts.
• With TurboTax, you can deposit your refund in up to 3 different accounts. You can also use all or part of your federal tax refund to purchase US Savings bonds, either for yourself or as a gift for a child or grandchild.

* All features are not in all products.  For a product feature list please see the product comparison chart.

Intuit, the Intuit logo and TurboTax, among others, are registered trademarks and/or registered service marks of Intuit Inc. in the United States and other countries.

TurboTax for 2010, from Intuit Inc. (Nasdaq: INTU), automatically transfers more essential tax information into tax returns for greater ease and accuracy. Customized guidance, recommendations and answers give customers the confidence that their taxes are done right.

“More than 20 million federal returns were prepared with TurboTax last year,” said Dan Maurer, general manager of TurboTax. “Every year, more and more people choose TurboTax because it’s so easy to use and because TurboTax guarantees they’re getting their biggest possible tax refund.”

Greater Ease and Accuracy

TurboTax 2010 has expanded the ability to automatically transfer essential tax information from last year’s return and from hundreds of thousands of employers and financial institutions. Instead of typing in wage, interest, dividend, stock transactions, and mortgage information, TurboTax customers can instantly transfer that data and simply confirm it’s correct.

TurboTax 2010 eliminates more manual data entry, easily and automatically transferring:

• Wage, salary, investment and mortgage information – the same data the IRS receives – from more than 250,000 employers and 300 financial institutions, banks and credit unions.
• Tax and personal information from last year’s tax return prepared on different software into the 2010 tax return via PDF.
• Interest income from financial institutions, banks and credit unions by connecting with customers’ Mint.com accounts.

Customized Guidance and Recommendations

Based on information transferred and answers to a few simple questions, TurboTax guides users step-by-step through a customized preparation process to help make sure they get every deduction and credit to which they are entitled. Whether it’s $1,757 for a college education, $3,000 for triplets or $2,351 for a new hybrid car, taxpayers can be confident they are getting every dollar they deserve.

This year, the unique GPS feature in TurboTax provides additional guidance and recommendations, based on each customer’s individual tax situation.

TurboTax recommends the deductions and credits that will help customers get their maximum refund. For example, taxpayers may not know which of the 16 different education deductions and credits will get them to their maximum refund. But TurboTax does.  By doing hundreds of calculations and recommending the best choice, TurboTax makes tax preparation even easier.

Better, Faster Answers

When customers need assistance, streamlined and integrated help puts the answers at their fingertips. With a single click, TurboTax quickly searches and brings together all the relevant answers from thousands of FAQs, articles and the TurboTax Live Community.

Customers can also speak with TurboTax customer support and a tax expert if they’d prefer.

Fast Refunds

This year, TurboTax offers more ways for customers to get their refunds as quickly as possible. Completely free, IRS electronic filing is the fastest, easiest way for taxpayers to receive their federal refunds, in as little as eight days with direct deposit. TurboTax customers can also choose to put their refund on the TurboTax Refund Card, a pre-paid debit card.

TurboTax is updated with the latest tax law changes so customers can be confident they’re getting their biggest possible refund. No other tax service or software can get taxpayers their refund faster.

Pricing and Availability

TurboTax 2010 desktop products start at $29.95, including federal e-filing, and are available at retail stores and direct from Intuit at www.TurboTax.com. TurboTax Online is now available at www.TurboTax.com.

TurboTax Online pricing starts at free for simple federal tax returns with the TurboTax Online Free Edition. All TurboTax Online federal and state offerings include e-filing at no additional cost.

About TurboTax

TurboTax is the nation’s No. 1 rated, best-selling, do-it-yourself tax preparation software. Available on desktop, online and mobile, TurboTax helps more than 20 million people a year easily and accurately claim every deduction and credit they’re entitled to, so they get their biggest tax refund possible. For more information, visit the TurboTax press room.

About Intuit

Intuit Inc. is a leading provider of business and financial management solutions for small and mid-sized businesses; financial institutions, including banks and credit unions; consumers and accounting professionals. Its flagship products and services, including QuickBooks®, Quicken® and TurboTax®, simplify small business management and payroll processing, personal finance, and tax preparation and filing. ProSeries® and Lacerte® are Intuit’s leading tax preparation offerings for professional accountants. Intuit Financial Services helps banks and credit unions grow by providing on-demand solutions and services that make it easier for consumers and businesses to manage their money.

Founded in 1983, Intuit had annual revenue of $3.5 billion in its fiscal year 2010. The company has approximately 7,700 employees with major offices in the United States, Canada, the United Kingdom, India and other locations. More information can be found at http://www.intuit.com.

Intuit, the Intuit logo and TurboTax, among others, are registered trademarks and/or registered service marks of Intuit Inc. in the United States and other countries.

“Taxpayers are confused by the current uncertainty, and TurboTax will help them navigate through late-breaking changes, no matter what Congress decides,” said Bob Meighan, CPA and vice president of TurboTax. “TurboTax is prepared for several possible scenarios and then can flip the switch when Congress acts. We’ll be ready when people are ready to file so they can be confident they’re getting their biggest possible refund.”

A recent online poll of TurboTax customers shows that while awareness of the expiring tax cuts is high, understanding the true impact of these changes is low. About 65 percent of those surveyed say they don’t know how these changes could impact their 2010 taxes.

The majority of those responding (70 percent) say they are not making any changes to their year-end tax planning as a result of these pending changes. More than half (58 percent) said they are most concerned about the expiring tax cuts, with 14 percent expressing most concern about the Alternative Minimum Tax, or AMT.

AMT, Tax Cuts Set to Expire

House and Senate tax writing committees have pledged to “do everything possible” to adjust the existing AMT laws so that no additional taxpayers are affected. However, tax bills will rise for an estimated 25 million Americans if Congress fails to act, a dramatic increase over the 4 million taxpayers today facing the AMT.

The fate of several tax credits associated with AMT are also in question, including the child and dependent care credit and the earned income tax credit for low and middle-income workers.

Additionally, Bush-era tax cuts are set to expire at the end of this year. Without Congressional action, personal income tax rates will go up across all income brackets. Taxpayers earning dividends, such as retirees, will see the tax rate on dividends increase and the marriage penalty will once again raise the tax rate on families.

However, if all the current expiring cuts are extended by Congress, the cost will add $3.7 trillion to the national deficit over 10 years according to the Treasury Department. While Congress and the White House wrestle with these difficult economic choices as the expiration deadline looms, taxpayers can rest assured that TurboTax will be ready to simplify tax preparation.

Automatically Updated

TurboTax is already prepared to handle multiple scenarios. When Congress does act, TurboTax Online will be automatically updated to reflect the most current tax laws. TurboTax desktop software customers can use the easy, One Click Update to get the most up-to-date tax forms before they file.

“No other tax service or software can get you your refund faster,” said Meighan.”So there’s no need to delay starting your tax return with TurboTax.”

For the latest information on expiring tax cuts and smart year-end tax tips, visit Tax Break, the TurboTax blog.

About TurboTax

TurboTax is the nation’s No. 1 rated, best-selling, do-it-yourself tax preparation software. Available on desktop, online and mobile, TurboTax helps more than 20 million people a year easily and accurately claim every deduction and credit they’re entitled to, so they get their biggest tax refund possible. For more information, visit the TurboTax press room.

About Intuit

Intuit Inc. is a leading provider of business and financial management solutions for small and mid-sized businesses; financial institutions, including banks and credit unions; consumers and accounting professionals. Its flagship products and services, including QuickBooks®, Quicken® and TurboTax®, simplify small business management and payroll processing, personal finance, and tax preparation and filing. ProSeries® and Lacerte® are Intuit’s leading tax preparation offerings for professional accountants. Intuit Financial Services helps banks and credit unions grow by providing on-demand solutions and services that make it easier for consumers and businesses to manage their money.

Founded in 1983, Intuit had annual revenue of $3.5 billion in its fiscal year 2010. The company has approximately 7,700 employees with major offices in the United States, Canada, the United Kingdom, India and other locations. More information can be found at http://www.intuit.com.

Intuit, the Intuit logo and TurboTax, among others, are registered trademarks and/or registered service marks of Intuit Inc. in the United States and other countries.

SAN DIEGO – Nov. 4, 2010 – Taxpayers who want to plan for their 2010 returns can get a free answer to a personal tax question at www.freetaxquestion.com, starting today. The answers come courtesy of the tax experts at TurboTax®,  the nation’s best-selling, No.1-rated tax software from Intuit Inc. (Nasdaq: INTU).  The free service is available through Jan. 31.

TurboTax is moving up its annual free offer into November to help taxpayers get a jump on last-minute tax deductions or to better understand what they can do now in the face of pending tax legislation.

“The earlier availability of the free offer gives taxpayers extra time to take action.  Depending on their tax situation, it may make more sense for some people to accelerate their income, maybe take that bonus now or sell stocks before the end of the year, and defer deductions till next year, said Bob Meighan, CPA and vice president of TurboTax.  “We know people have burning tax questions this time of year and getting a quick, easy answer gives them the confidence they need when they sit down to do their own taxes. Answering a tax question for free is simply another way TurboTax helps make it easy for people to get their biggest refund possible.”

To participate, any U.S. taxpayer can submit a personal federal tax-related question online at www.freetaxquestion.com. They’ll receive a personalized, one-on-one, call back at a time they request from a tax expert from TurboTax. The TurboTax experts are IRS-Enrolled Agents, Certified Public Accountants and Tax Preparers with advanced education and experience in tax law and return preparation.  This is a limited time offer and subject to availability.

For all the latest tax tips and information, visit Tax Break, the TurboTax blog, follow us on Twitter or become a fan on FaceBook.

About Intuit Inc.

Intuit Inc. is a leading provider of business and financial management solutions for small and mid-sized businesses; financial institutions, including banks and credit unions; consumers and accounting professionals. Its flagship products and services, including QuickBooks®, Quicken® and TurboTax®, simplify small business management and payroll processing, personal finance, and tax preparation and filing. ProSeries® and Lacerte® are Intuit’s leading tax preparation offerings for professional accountants. Intuit Financial Services helps banks and credit unions grow by providing on-demand solutions and services that make it easier for consumers and businesses to manage their money.

Founded in 1983, Intuit had annual revenue of $3.5 billion in its fiscal year 2010. The company has approximately 7,700 employees with major offices in the United States, Canada, the United Kingdom, India and other locations. More information can be found at http://www.intuit.com.

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About TurboTax

TurboTax is the nation’s No. 1 rated, best-selling, do-it-yourself tax preparation software. Available on desktop, online and mobile, TurboTax helps more than 20 million people a year easily and accurately claim every deduction and credit they’re entitled to, so they get the biggest tax refund possible. For more information, visit the TurboTax press room.

About Intuit Inc.

Intuit Inc. is a leading provider of business and financial management solutions for small and mid-sized businesses; financial institutions, including banks and credit unions; consumers and accounting professionals. Its flagship products and services, including QuickBooks®, Quicken® and TurboTax®, simplify small business management and payroll processing, personal finance, and tax preparation and filing. ProSeries® and Lacerte® are Intuit’s leading tax preparation offerings for professional accountants. Intuit Financial Services helps banks and credit unions grow by providing on-demand solutions and services that make it easier for consumers and businesses to manage their money.

Founded in 1983, Intuit had annual revenue of $3.5 billion in its fiscal year 2010. The company has approximately 7,700 employees with major offices in the United States, Canada, the United Kingdom, India and other locations. More information can be found at http://www.intuit.com.

TaxCaster builds on the momentum of Intuit’s innovative, multi-platform suite of mobile offerings for consumers and small businesses. The company expects to introduce several new Windows Phone 7 apps in the coming months.

In today’s keynote at PDC10, Microsoft showcased TaxCaster, highlighting how the app extends Windows Phone 7’s design elements to create an easy, engaging user interface.

“Windows Phone 7 is backed by a rich developer ecosystem that is creating a variety of quality apps that take advantage of the phone’s unique features and design,” said Todd Brix, senior director, Windows Phone Marketplace, Microsoft Corp. “TaxCaster from TurboTax is a great example of the kind of rich applications that people will find on Windows Phone Marketplace to get the most out of their phone.”

“When Microsoft approached us about Windows Phone 7, we welcomed the opportunity to reach more consumers and to create a unique mobile experience on Microsoft’s platform,” said Murthy Pidaparthi, development manager for TurboTax. “TaxCaster for Windows Phone 7 expands our mobile offerings, adding a new platform for open innovation.”

TaxCaster is expected to be available for free download to Windows Phone 7 users in the U.S. on Nov. 8.

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About TurboTax

TurboTax is the nation’s No. 1 rated, best-selling, do-it-yourself tax preparation software. Available on desktop, online and mobile, TurboTax helps more than 20 million people a year easily and accurately claim every deduction and credit they’re entitled to, so they get the biggest tax refund possible. For more information, visit the TurboTax press room.

About Intuit Inc.

Intuit Inc. is a leading provider of business and financial management solutions for small and mid-sized businesses; financial institutions, including banks and credit unions; consumers and accounting professionals. Its flagship products and services, including QuickBooks®, Quicken® and TurboTax®, simplify small business management and payroll processing, personal finance, and tax preparation and filing. ProSeries® and Lacerte® are Intuit’s leading tax preparation offerings for professional accountants. Intuit Financial Services helps banks and credit unions grow by providing on-demand solutions and services that make it easier for consumers and businesses to manage their money.

Founded in 1983, Intuit had annual revenue of $3.5 billion in its fiscal year 2010. The company has approximately 7,700 employees with major offices in the United States, Canada, the United Kingdom, India and other locations. More information can be found at http://www.intuit.com.