When Does M1 Finance Release Tax Documents?

When Does M1 Finance Release Tax Documents?

Everyday, scores of investors are partaking of M1 Finance’s tax deferment tool. Nevertheless, your investments with this broker are going to incur some tax if a transaction is performed on your account. Therefore, the tax documents of customers are released in the following manner…

Within the first few months after the end of a financial year, M1 sends customers an email containing their tax documents. This is based to a large extent on their account type. Your tax documents will be released on the dates below:

On February 16, consolidated 1099 for joint, individual, LLC, corp, partnership and custodial accounts will be released.

On January 31, 1099-R for traditional, Roth IRA, and SERP will be released.

On May 31, 5498 forms will be released for contributions spanning the April 15 cut off. 

What Are The Tax Documents Released By M1 Finance?

There are four tax documents released by M1 Finance depending on your account category. They are Consolidated 1099, 1099-R, 5498, and 1099-INT.

The Consolidated 1099 tax document chronicles taxed activities in your taxable account. This document comes with three types of forms. They include 1099-B, 1099-MISC, and 1099-DIV. Any or all of these forms will be released to you based on your situation.

The 5489 tax document details every contribution made into your retirement account for a year. This retirement account on M1 Finance may be SEP, Traditional, or Roth. The 1099-R is sent to customers who have taken an unqualified or qualified distribution from a Roth, SEP, or Traditional retirement account. 

1099-INT is used to record interests earned as income by customers. This IRS tax document is meant for M1 plus members alone. It is issued to all investors at the end of a financial year, detailing every type of interest income and expense. It is compulsorily issued by interest payers when interest paid is as low as $10 and above.

How Does A Tax Document On M1 Finance Come About?

Taxes in M1 Finance are incured when a purchase or sale is made on your taxable brokerage account. Also, interest and dividends you earn in your account are taxable under the umbrella of income taxes. 

All dividends with the exception of qualified dividends are taxed like any regular income tax. Qualified dividends are taxed at a lower rate, and thankfully, most dividends are qualified. 

Capital gains you make are not exempt from taxation as well. This subset of taxable income comes about when you sell your assets. This implies that you will not be taxed for any asset that doesn’t pay a dividend until you sell it off and reap capital gains.

Therefore, you only incur taxes when you sell off your assets or get dividends. Otherwise, you incur little in the way of taxes even if you have a good investment year. 

How Can You Find M1 Finance Tax Documents?

To find tax documents on M1’s website, follow the following steps.

  • Log into your M1 account.
  • Select your name at the top right corner of the screen.
  • Then, select “view account settings.”
  • Select the tab called, “Documents.”
  • After selecting this, a check box known as “Tax forms” will be displayed.
  • Select the “Tax forms” check box.
  • If you’re due a tax document, you will get one when you select it.

Conversely, to find tax documents on M1’s app, follow the following steps.

  • Log into your M1 Finance account.
  • Select the person icon in the top right corner. 
  • Select the tab called “Documents.” 
  • A check box named as “tax forms” will be displayed for you. 
  • Select the “tax form” check box.
  • If you’re due for a tax document, you will find one there when you select it. 

However, if you’re eligible to receive a tax document, M1 Finance will surely send you an email. Therefore, rather than going through all of the above processes, you may simply wait for their mail. 

Notwithstanding, I understand that you may miss seeing their email on the release dates. Hence, you may simply check your account or app to confirm if a tax document has been sent to you. 

How Can You Know If You’re Going To Receive A Tax Document From M1 Finance?

If you meet the criteria to be issued a tax document, M1 Finance will definitely send you an email. You may also check the “documents” tab on their website to see if you’ve been issued a tax document. 

All in all, if you partook of any taxable financial activity, you will be issued a tax document. You will get a 1099-R document if you make a distribution from your retirement account. Similarly, if you pay at least $10 in interest on your M1 spending account, you will receive a 1099-INT tax document.

On the other hand, you will get a 5498 tax document if you make any contributions to your retirement account. The Consolidated 1099 tax document is issued when taxable activities are carried out in your taxable account.

How to minimize tax documents on M1 Finance

M1 Finance provides a feature for customers called tax minimization. This feature enables customers to transfer money into and out of their account in the least taxable method. This way, you do not incur transfer fees.

This tax-efficient tool is designed in such a way that makes you automatically pay little on taxes. When you invest in a Roth IRA through this broker, you do not pay commissions and fees because it is free! Whereas with other brokers, you’re required to pay several fees and commissions. Consequently, customers using M1 Finance can save money seamlessly. 

In conclusion

If you are an investor, it is pertinent that you understand tax documents in their entirety. This knowledge would help you make prudent investment decisions as you go. And M1 Finance, as a brokerage firm, is ready to help you on this journey.

Tax documents are released timely and accurately to customers’ emails. However, you may check the M1 website or app for your tax documents. You may do well to enjoy this broker’s tax minimization feature.


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