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Tax Information and FAQ from EBW

Tax Information and FAQ from EBW

March 04, 2022

Dear EBW Client,

It’s that time of year again!  Tax season brings many questions, and we wanted to do our part to provide you with the answers that you’re looking for.

When can I expect my tax documents?

Nearly all of the tax documents are already created and available, and many of you should have already received physical copies if you elected for physical delivery of tax documents.  A small number of 1099s for non-IRA accounts (primarily accounts registered as Individual, Joint, or Trust) are still pending final information from the mutual fund companies responsible for reporting information to Cetera.  The deadline for this information to be provided is March 15th, at which point all tax documents will be finalized as is and sent out.

How many tax documents should I expect?

In general, IRAs, Inherited IRAs, Roth IRAs, 529s, and other tax-qualified accounts will only produce a tax document if there was a distribution taken from the account.  This could be monthly withdrawals, a lump-sum, or distributions related to an RMD (Required Minimum Distribution – for those over age at least age 72, or that own an Inherited IRA).
Non-IRA accounts will generally produce a 1099 reflecting any dividends, interest, or capital gains, regardless of whether or not any funds were actually withdrawn from the account.

This year is unique in that many will be receiving 2 sets of documents.  This is related to our Broker/Dealer transition from Voya Financial Advisors to Cetera Advisor Networks, which was effective June 4th, 2021.  Any taxable transactions, withdrawals, or events that occurred while the accounts were still held with Voya will be reported on tax documents produced and provided by Voya.  The same goes for Cetera, with any tax data occurring after the transition date being reported on documents from Cetera.  As an example, this means that if you owned a non-IRA account that experienced interest and dividend income throughout the year, you would receive one 1099 from Voya, and another for Cetera, each related to the same account and reflecting whatever relevant tax data occurred during it’s respective part of the year.  Likewise, an IRA account that had monthly withdrawals occurring throughout 2021 would have a 1099 from both Voya and Cetera.

Where can I locate my tax documents?

All tax documents are available via your online accesses.

If you primarily use NetX Investor as your online login, you can view the information for both Voya Financial, as well as Cetera.  You can make the distinction between which set of data you would like to view by changing the ‘Financial Organization #’ upon logging in.  To view the Voya version of the site, the number is ‘3Z1’, and to view the Cetera version, the number is ‘157’.  Upon logging in, you can navigate to Communications > Tax Documents to view the tax forms.

If you primarily use AdviceWorks, the tax documents for both Voya Financial and Cetera are available on the site.  Navigate to ‘My Documents’ > ‘Statements & Notices’ > ‘Tax Docs’.  This page will house both the Voya and the Cetera tax documents, and the difference will be noted in the top-left corner of the first page of the document.

It should also be noted that all tax documents from Voya Financial were also physically mailed to the address of record on the accounts at the time of the transition (June 4th), regardless of any eDelivery elections for physical vs. digital. 

Can I import my information to TurboTax?

Tax data can be imported to TurboTax using an active NetX Investor login.  Within TurboTax, the institution name that should be searched for is ‘NetX Investor (Pershing)’.  This institution will actually allow you to import both the Voya data as well as the Cetera data.  Similar to the NetX Investor login, the distinction is made in the ‘Financial Institution #’ that TurboTax prompts you to fill-in.  To import the Voya data, use ‘3Z1’, and to import Cetera, use ‘157’.  TurboTax will then prompt for the UserID and Password for the NetX Investor login.

Tax data cannot be directly imported to the HR Block tax filing software.

Where can I locate the supplemental tax data?

Certain accounts and tax situations may require supplemental tax data beyond what is on the tax form to complete filing.  The link to this data is included on the tax documents themselves, but for reference it can be found here, in the ‘Tax Supplemental Information tool’.  The tool will prompt for account related info to provide the supplemental data.  One thing worth mentioning is the ‘IP#’ that it requests – this is a 3 digit code related to your advisor, and this code can be found on the first page of the tax document under the Financial Consultant information.  Also note that this supplemental data should be pulled for both Voya and Cetera, using the corresponding account numbers on the tax forms.

How are Qualified Charitable Donations reported on my 1099?

Many of you conduct Qualified Charitable Donations by sending funds directly from an IRA account to a qualified charitable organization.  Please note that your 1099R does not make the distinction as to how much of the funds withdrawn throughout the year were used for this purpose.  Your advisor can provide information on how much charitable giving was conducted directly from your IRA if you do not have that information.  Your tax professional or tax reporting software can help with correctly indicating the portion of withdrawal related to QCD.

Please note that we are not tax professionals and cannot provide assistance in filing tax returns.  For a comprehensive review of your personal situation, always consult with a tax or legal advisor. Neither Cetera Advisor Networks LLC nor any of its representatives may give legal or tax advice.  If you have any questions related to your tax forms or have any trouble locating them, please do not hesitate to contact your advisor for assistance.

Your Team at EBW

Relationships with valued clients such as you are the reason we're in business, and we always welcome the opportunity to speak with people who could benefit from our experience. If you have someone you believe could benefit from our services, please contact us at (703) 506-0030. 

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Securities and advisory services are offered through Cetera Advisor Networks LLC, member FINRA/SIPC, a broker-dealer and registered investment adviser. Cetera is under separate ownership from any other named entity.