The Internal Revenue Service (IRS) typically begins accepting tax returns for income earned in 2023 by the end of January 2024.  

The deadline to submit your tax return or apply for an extension is Monday, April 15, 2024. To help you prepare to file, Stash has created the following checklist to help make sure you’re informed for the upcoming filing season and that you have everything you need: 

#1 Find out which forms you need and when to expect them

Before you start to file, know which forms you’ll need and make sure you have them. If you are, or were, fully employed by a company that withheld taxes from your paycheck in 2023, you should receive a W-2 based on the W-4 withholding information you filled out when you started. If you’re a freelancer or a contractor, you should receive a 1099 form. Companies are required to send out W-2s and 1099s to employees by January 31, 2024.

Keep in mind that you might have additional forms based on your situation. For example, if you withdrew from your retirement accounts, you might receive 1099-R. Or if you received dividends from investments or you have realized capital gains or losses from investments, you might get a 1099-DIV or a 1099-B. For more information on which forms you might receive if you invest with Stash and when go here.

#2 Figure out your tax bracket

Another important thing to know when you start assembling your paperwork is what tax bracket you’re in. Here are the tax brackets for individuals and married couples in 2023, adjusted for inflation: 

2023 Federal Tax Rates, Unmarried Individuals:

2023 Federal Income Tax Rates, Married Filing Jointly:

#3 Gather any receipts you’ll need if you decide to itemize

For the 2023 tax year, the standard deduction for individuals is $13,850 and $27,700 for married couples. By taking the standard deduction, you can reduce your taxable income by that amount. But you might instead decide to itemize your deductions if you’re not permitted to take the standard deduction for some reason, or if your itemized deductions are likely to be worth more than the standard deduction. 

You might itemize expenses such as property taxes, interest accrued on your mortgage, charitable contributions, work-related expenses, and more. If you decide to itemize your deductions, you’ll need to collect all of the receipts and documents to substantiate your expenses.

#4 Determine whether you’ll need to work with a tax professional

You’ll also need to decide how you plan to file your taxes. You might want to use an online service. Or if your taxes are more complicated this year because, for example, you lived in multiple states or worked a few different jobs, you might want to work with a tax professional. 

Taxpayers who earned $73,000 or less in 2023 might qualify for the Free File Program from the IRS. Some tax preparation companies allow those taxpayers to file their federal, and in some cases state, taxes free of charge.

#5 Consider filing online, or apply for an extension 

The IRS recommends filing your tax return online in order to expedite the process of receiving a refund if you do receive one. You might also consider setting up direct deposit with your return so your refund can be deposited into your account without you needing to wait for it to arrive by mail. You can set up Direct Deposit with Stash to get your refund routed to your Stash account. 

And remember that if you need more time to file your return, you need to apply for an extension by April 15th. For more information, visit Stash’s tax center.

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The post Stash’s Tax Checklist: Things You Need to Know Before You File appeared first on Stash Learn.

Before we begin, please note that nothing written in this article should be construed as investment, legal, or tax advice. Please address specific questions on taxes to a tax professional.

Now onto the (super) basics:

Taxes can be tricky. Between capital gains, dividends, interest, distributions, contribution limits, and multiple 1099 forms, your head can start to feel like it’s spinning.

Here’s a little info we thought might help when navigating what you may need to know, particularly if you’re investing for the first time.

Before we show you how to find your tax documents, let’s figure out if you have them.

You should have tax documents from Stash if:

• You received dividend payments greater than $10 from your Stash Invest investments in 2023.1 
• You received more than $10 in interest on your Stash Invest account.
• You made a withdrawal from your Stash Retire IRA of $10 or more
• You sold an investment in your Stash Invest account in 2023.
• You received dividends on any stock or ETF owned, or any stock or ETF sold.
• You need to report certain income received by Puerto Rico taxpayers and Puerto Rico tax withholding.
• You may also generate a form 5498 on May 31 if you made a contribution to your retirement account during 2023.

You likely won’t have tax documents if:

• You received less than $10 of interest, and/or did not sell any investments before the end of 2023.
• You have a retirement account with Stash and haven’t made any withdrawals.

What if I lost money?

Essentially, if you sold an investment, you should have a tax form, even if you sold an investment at a loss. Learn more about how you can use capital losses to offset gains here. 

By February 15, 2024, you can check in the Stash app to see if your Form 1099-DIV and/or Form 1099-B are there. For a full list of possible forms and the dates you can expect to find them in your app, check this out: The 2024 Tax Season Dates You Need to Know.

Wondering what a dividend is? Check out Dividends: A New Investor’s Guide, What You Need to Know. 

Where do I find my Tax Forms?

To keep your information safe, our policy is not to email tax forms. Stash provides all tax forms securely online. You can access them through the Stash app by clicking here or on the web by clicking here. And it is super easy. Here’s how:

To find them in the app:

1. On your Home Screen, click on your initials (iOS) or hamburger icon (Android) in the upper left-hand corner.
2. In Settings, scroll down to the Documents section and click Portfolio.
3. Navigate by account type.
4. Select Tax Documents.

To find them on the web:

1. Click on your name in the top right corner of the screen.
2. Select Statements & Tax Documents from the left-hand menu.
3. Navigate by account type, then click Tax Documents.

You’ll find your tax forms separated out by account. Now you’ve got the documentation you need to declare any income or loss you may have realized in your Stash accounts from the previous tax year.

Forgot your password? No problem. You can reset your password by selecting the ‘forgot password’ option below the sign-in page.

Now is also a good time to make sure that all of your contact information is up to date in your Stash account, including your address, email, and phone number. This ensures all of your forms also have the correct details.

Voila! Your tax season for Stash is ready.

For more on deadlines and tax forms related to Stash Invest and Stash Retire, make sure to check out The 2024 Tax Season Dates You Need to Know.

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The post Your Stash and Taxes: The (Super) Basics appeared first on Stash Learn.

Tax season is just around the corner. To help you get organized, here’s a breakdown of tax forms you can expect from Stash, as well as the dates they are likely to be available.

For more information about the specific forms, you can go to the Internal Revenue Service (IRS) website. The IRS is the official source of deadlines, rules, and regulations for your taxes. We also recommend consulting a tax professional if you have specific questions. 

On or before February 15, 2024

Forms available!

Form 1099-R is available from Stash. You will only receive a 1099-R if you have taken a distribution (withdrawal) from your Stash Retire account that was $10 or more. If you’ve taken more than $10 out of your Stash Retire account, you should receive this form.

Profit and Loss statement is available from Bakkt for those who invested in Stash Crypto. This statement can be inputted into your chosen tax software. 

Consolidated Form 1099. If you meet the criteria for multiple 1099s, we will issue you what’s called a Consolidated 1099, which will consolidate all relevant forms into one convenient document. Many Stash investors will have Consolidated 1099s. A Consolidated 1099 may include:

Form 1099-B. This form is issued by Stash to represent realized gains or losses in any investment in your Stash Invest account in 2023.

There’s still a chance that you might get a 1099-B if you are subject to any backup withholding. Backup withholding happens when the information you have on file with the IRS does not match the information you have on file with Stash, the information is not corrected within an allotted time-frame, and you have any activity in your account during this time. For instance, the IRS has your social security number on file as 123-45-6789 but your SSN was reported to Stash as 124-35-6789.

Form 1099-DIV. This form is sent by Stash if you received dividends in 2023.

Form 1099-INT. This form is sent by Stash if you received more than $10 in interest in 2023.

February 28, 2024

Customers in Puerto Rico!

Form PR 480.6. This form is sent by Stash if you need to report certain income received by Puerto Rico taxpayers and Puerto Rico tax withholding.

April 15, 2024, at 3 p.m. EST

Stash Retire customers!

This is the final deadline to make a contribution toward your 2023 individual retirement account (IRA). Any contributions made after 3:00 p.m. EST on April 15th will go toward your 2024 contribution limit.

April 15, 2024

Tax Day!

This is your deadline to file your taxes this year. Certain states have specific deadlines, so be sure to check your state’s website for the most accurate deadline information.

On or before May 31, 2024

Form Available!

Form 5498. This form is only applicable to Stash customers with a Stash Retire IRA. The form will showcase all activity, such as contributions, rollovers, etc., that took place within your Stash Retire IRA during the 2023 tax year. This form is mostly for your records. It is sent to you as well as the IRS, and it is not necessary in order for you to file your taxes in a timely manner. 

October 15, 2024

Tax Day Take 2!

This is the last day to file your taxes if you’ve previously filed for an extension.

December 31, 2024

Take the required minimum distribution (RMD).

If you’re 72 or older, you must take a required minimum distribution from your IRA every year, also known as an RMD. (That’s 70 ½ if you reach 70 ½ before January 1, 2020.) If you have an IRA and you meet these criteria, remember to take your RMD by the end of 2024, as you are required to take your RMD by December 31 of each year. You can figure out how much you need to withdraw from your account by using the worksheets found here.

Last day to buy or sell stocks in order to claim gains and losses

When you file your taxes, you have to claim your capital gains and losses, or how much you earned or lost by buying and selling investments this year. One strategy you might use is to sell investments that have lost value to offset the taxes you’ll have to pay on gains, which is called tax-loss harvesting. In order to employ this strategy, you’ll have to make any sales or purchases by the end of the 2024 year.

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Want to simplify tax season? Easily import your Stash tax documents into TurboTax. And here’s a bonus—TurboTax offers Stashers up to 20% off federal tax prep.

Get started with TurboTax

The post Tax Season Dates You Need to Know for 2024 appeared first on Stash Learn.

The Internal Revenue Service (IRS) extended the tax filing deadline to July 15 from April 15, 2020, to give people more time, due to the ongoing Covid-19 pandemic. Taxpayers must also make payments if they owe money on their 2019 tax returns by July 15. If you have yet to submit your tax forms for 2020 or make payments on your 2019 taxes, now is is the time to think about filing, or applying for an extension. 

As you’re getting ready to file, here are some things to keep in mind. 

Which tax bracket you’re in 

When you’re filing your taxes, you’ll probably want to know exactly how your income is taxed, according to your income. If your financial situation has changed because of Covid-19, remember that you’re filing for income earned in 2019. Here are the tax brackets for 2019 incomes:

*Source: IRS

*Source: IRS

Remember that you won’t necessarily pay the highest applicable tax rate on all of your income. For example, let’s say you’re single and you make $45,000 annually. You’d pay 10% on the amount up to $9,700. You’d pay 12% on the amount from $9,701 up to $39,475; and then 22% on the amount from $39,476 to $45,000. 

If you got married, bought a house, had kids in 2019, or had some other qualifying event in your  life, you may be eligible for some important deductions. You can find more information about those situations here.

Which tax forms you’ll need

Stash provides tax forms securely online. You can access them through the Stash Invest app by clicking here. You’ll likely have tax forms from Stash if:

• You received dividend payments greater than $10 from your Stash Invest investments in 2019.¹
• You received more than $10 in interest on your Stash Invest account.
• You made a withdrawal from your Stash Retire IRA of $10 or more, or
• You sold an investment in your Stash Invest account in 2019.
• You received dividends on any stock owned, or any stock sold.
• You will also generate a form 5498 if you made a contribution to your retirement account during 2019.

Make sure to download those forms before you start to file.

What to do if you still need an extension

You might still need to extend the deadline for filing your taxes. If so, you can apply for an extension to October 15, 2020. You can submit your application for an extension with the IRS by July 15, 2020.

Remember, the sooner you file, the sooner you’ll receive your refund, if you qualify for one.

The post It’s Tax Time! Here’s What You May Need to Know As Tax Day 2020 Approaches. appeared first on Stash Learn.