1099’s – An Annual Frustration

Tax PlanningWe received notice from Dimensional Funds (DFA) on February 27, 2015, that their accounting agent, a third party vendor, has identified a necessary correction to the calculation of Qualified Dividend Income (QDI) and Dividends Received Deduction (DRD) percentages for certain funds. As a result, DFA is issuing amended 1099-DIV tax forms for the affected funds. Here are the affected funds:

  •  DFA Global Allocation 25/75 Portfolio I
  • DFA Global Equity Portfolio Institutional
  • DFA International Core Equity Portfolio I
  • DFA International Sustainability Core I Portfolio
  • DFA International Vector Equity Portfolio I
  • DFA T.A. World ex U.S. Core Equity Portfolio
  • DFA Selectively Hedged Global Equity Portfolio

We expect TD Ameritrade to distribute corrected 1099 forms on March 9th in accordance with their standard practices. What all of this means is that you may have to file an amended return if you already filed your taxes for 2014 and if you hold shares of any of the mutual funds listed above in your taxable accounts.

We would encourage you to consult your tax professional if you are unclear about how these corrections may apply to you.  If you have not already filed your 2014 return, we would encourage you to wait until you receive the corrected 1099s from TD Ameritrade, which should be released on March 9th. We anticipate TD Ameritrade will notify impacted clients with a valid email address on file when the corrected 1099s are available  to be accessed online.

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