Merrill A Bank of America Company Merrill A Bank of America Company Open an account Login Open Menu bar Find answers to common questions at MerrillSchedule an Open an accountwith Merrill Tax Planning Tax-efficient accounts and investing methods for smarter tax planning Jan. 24 - Feb. 28 1099 forms mailedFootnote2 April 15 Tax-filing deadline April 15 Retirement contribution deadline May 12 - May 31 5498 forms mailed Oct. 15 Filing deadline if you received an extension Tax statement mailing dates Go to third-party websiteSave up to 10% on TurboTax® Take advantage of this offer for Merrill clients. Go to third-party websiteIRS forms Access frequently downloaded forms and publications from the IRS website. Download your year-end tax information Download your data, including your 1099 summaries, to Quicken®, Microsoft Money, Microsoft Excel® or your computer. Direct-deposit your federal refund It's easy to have your refund deposited electronically into your IRA or Cash Management Account®. When will Consolidated 1099s be available? We'll begin issuing 2023 tax-reporting statements starting January 24, 2024, and, in most cases, mail or post them to the Tax Documents section of your online account by February 28, 2024. With paperless delivery, we'll notify you when your documents are ready. You can confirm or update your delivery preferences to Paperless, and we'll email you when new documents are available online. What's a Consolidated 1099, and will I receive one? A Consolidated 1099 is a summary of individual accounts' 1099 tax forms. We'll prepare a Consolidated 1099 for any client who, based on the type of account they have or securities they hold, has had a reportable event in 2023. These include, but are not limited to, sales of securities as well as dividends or interest income received in taxable accounts. If there aren't any reportable events, you may not receive a Consolidated 1099. Please note: 1099-R forms will be sent separately from your Consolidated 1099 tax statement. What might delay Consolidated 1099s? We make every effort to provide accurate statements as early as possible — however, certain events can delay reporting. If your account holds securities that have not provided final income classification, have notified us of revised income classification or have a history of late income reclassification, these events could affect the timing of your tax statements. In these cases, in order to validate the information we provide and minimize the number of corrected tax statements you receive, we request an extension with the IRS through March 18, which means that affected 1099s may not be available until that time. Why isn't my tax statement available online? If you had reportable income (over $10) requiring a tax document, you should receive your tax statement by February 28. If it's after February 28, your tax statement may be delayed. Please be aware that you may receive a supplemental tax-reporting statement, which will be issued on March 18, depending on the types of holdings in your account. How will I receive my statements if I have multiple accounts? If you have more than one account, you may receive tax statements at different times, depending on your account holdings and income activity. Make sure you've received all of your statements before you complete your tax return since filing taxes early may require an amended return. In addition: View all tax-related FAQs What is cost basis? Cost basis is generally the price at which you purchased or acquired a security, including all commissions and fees. This information is important to you because it may be required information when completing your tax returns. Cost-basis reporting regulations issued by the IRS in 2010 require all brokers to report to their clients and to the IRS the adjusted cost basis of "covered securities" that are sold during the tax year. How do I update my cost-basis information? Cost basis is based on broker-dealer records and in most cases is not eligible for updates unless an error was made in documentation. The Cost basis Updates request form includes information regarding conditions that can cause a change in your cost basis. If you require assistance, please contact us. What is adjusted cost basis? Adjusted cost basis is used to calculate a gain or loss as a result of selling a security. It is based on the price paid for a security, but includes a variety of possible adjustments (for example, when a stock splits). What is a tax lot? A tax lot is the number of shares in the same security acquired at the same time. In general, each tax lot will have a different purchase price. As a result of IRS cost-basis reporting regulations that took effect at the beginning of 2011, the cost basis for some of your tax lots may be reported to the IRS while the cost basis for other tax lots will not, depending on the date of purchase. If you choose the specific identification method of cost basis calculation, you can select which lots to sell to have more control over your reported gains and losses. Lot specification is regulated by the IRS and must be executed prior to settlement. How do I calculate the cost basis of a stock that has split? Generally, you take the pre-split adjusted cost basis and divide it by the new amount of shares you now hold as a result of the stock split to arrive at the new per-share adjusted cost basis. View all cost-basis FAQs Select for RMD calculatorRequired Minimum Distribution (RMD) CalculatorGo to third-party website for access toIRS withholdings calculator Getting ready for taxes: Review this list first Tax-smart investment strategies you should consider Get to know tax-advantaged IRAs What are required minimum distributions? Roth IRA conversion calculator Learn more about 529 plans 529 plan state tax calculator Estate-planning checklist Footnote Merrill, its affiliates, and financial advisors do not provide legal, tax, or accounting advice. You should consult your legal and/or tax advisors before making any financial decisions. Footnote2 We produce tax documents at different times, and we post account documents when they're available. If you have more than one account, you may receive additional tax documents. Please make sure you receive all of your tax documents before you complete your tax return. MAP6147015 -06122025 Investing in securities involves risks, and there is always the potential of losing money when you invest in securities. Asset allocation, diversification, and rebalancing do not ensure a profit or protect against loss in declining markets. Merrill, its affiliates, and financial advisors do not provide legal, tax, or accounting advice. You should consult your legal and/or tax advisors before making any financial decisions. This material is not intended as a recommendation, offer or solicitation for the purchase or sale of any security or investment strategy. Merrill offers a broad range of brokerage, investment advisory (including financial planning) and other services. Additional information is available in our Client Relationship Summary (PDF). Merrill Lynch, Pierce, Fenner & Smith Incorporated (also referred to as "MLPF&S" or "Merrill") makes available certain investment products sponsored, managed, distributed or provided by companies that are affiliates of Bank of America Corporation ("BofA Corp."). MLPF&S is a registered broker-dealer, registered investment adviser, Member Securities Investor Protection (SIPC) popup and a wholly owned subsidiary of Bank of America Corporation ("BofA Corp"). Merrill Lynch Life Agency Inc. (MLLA) is a licensed insurance agency and wholly owned subsidiary of BofA Corp. Banking products are provided by Bank of America, N.A. and affiliated banks, Members FDIC and wholly owned subsidiaries of Bank of America Corporation. Investment products offered through MLPF&S and insurance and annuity products offered through MLLA: Privacy|Security|Glossary|Advertising practicespopupAdvertising Practicespopup © 2024 Bank of America Corporation. All rights reserved. 4326521
appointmentwith Merrill2023 tax year: Important datesFootnote1 & resources
Routing number: 084301767Frequently asked questions
Tax-related FAQs
Cost-basis FAQs
Learn & plan
Tax-efficient investing
Always remember your taxes when you make investment decisions.
Retirement & taxes
Build up your investments — and lower your tax bill.
Tax-savvy college savings plans
Discover how 529 college plans may help you save for higher education.
Estate planning & inheritances
Minimize gift and estate taxes, and preserve more assets for loved ones.
Are Not FDIC Insured Are Not Bank Guaranteed May Lose Value Are Not Deposits Are Not Insured by Any Federal Government Agency Are Not a Condition to Any Banking Service or Activity
FAQs
What is the best investment strategy to reduce taxes? ›
Choosing investments with built-in tax efficiencies, such as index funds—including certain mutual funds and ETFs (exchange-traded funds)—is one way to minimize the tax drag on your returns. ETFs may offer an additional tax advantage. The way their transactions settle allows them to avoid triggering some capital gains.
What are tax-efficient investing options? ›- IRA, 401(k), or 403(b). Contributions to traditional IRAs and employer-sponsored 401(k)s and 403(b)s are made pre-tax, which lowers your taxable income for the year. ...
- Roth IRA and Roth 401(k). ...
- Health Savings Account (HSA). ...
- 529 plan.
Defer the realization of gains.
As mentioned earlier, a fundamental tax planning tenet is that it is generally better to defer taxes as long as possible, and one way to do this is by deferring the realization of gains. In many circ*mstances, this strategy can make a portfolio more tax-efficient.
The Tax-efficient model is a strategic, globally diversified series of multi-asset portfolios designed to minimize taxable distributions. The model uses investment-grade municipal bonds, indexed equity investments and low turnover to help investors keep more of their returns.
What are three ways you can lower your taxable income? ›- Invest in Municipal Bonds. ...
- Shoot for Long-Term Capital Gains. ...
- Start a Business. ...
- Max Out Retirement Accounts and Employee Benefits. ...
- Use a Health Savings Account (HSA) ...
- Claim Tax Credits.
Index funds—whether mutual funds or ETFs (exchange-traded funds)—are naturally tax-efficient for a couple of reasons: Because index funds simply replicate the holdings of an index, they don't trade in and out of securities as often as an active fund would.
How do I avoid income tax on stock options? ›- Exercise early and File an 83(b) Election.
- Exercise and Hold for Long Term Capital Gains.
- Exercise Just Enough Options Each Year to Avoid AMT.
- Exercise ISOs In January to Maximize Your Float Before Paying AMT.
- Get Refund Credit for AMT Previously Paid on ISOs.
- Reduce the AMT on the ISOs by Exercising NSOs.
- Short-term certificates of deposit. ...
- Series I savings bonds. ...
- Treasury bills, notes, bonds and TIPS. ...
- Corporate bonds. ...
- Dividend-paying stocks. ...
- Preferred stocks. ...
- Money market accounts. ...
- Fixed annuities.
Taxable interest is taxed just like ordinary income. Payors must file Form 1099-INT and send a copy to the recipient by January 31 each year. Interest income must be documented on Schedule B of IRS Form 1040.
How can I maximize my tax return? ›- Work with a tax professional. ...
- Claim all eligible tax credits and deductions. ...
- Don't overlook deductible expenses. ...
- Choose the right filing status. ...
- Maximize your contributions. ...
- Adjust your W-4. ...
- File at the right time.
Are there any tax-free investments? ›
Municipal bonds are generally free of federal tax because the interest from bonds issued by a state, municipality, or other local entity is exempt from federal taxation. As an added benefit, most states will allow a state tax exemption if the owner of the bond resides in the state of issue.
What are two tax planning strategies to minimize your future income taxes? ›Income tax planning involves analyzing your financial situation as well as the IRS tax code so you can minimize your tax liability. There are many ways to minimize your income taxes, such as postponing income and accelerating deductions, or controlling when income is recognized.
How do you know if tax is efficient? ›For example personal income taxation should guarantee a high level of equity through progressiveness. A financial process is said to be tax efficient if it is taxed at a lower rate than an alternative financial process that achieves the same end.
Why is it important that taxes be efficient? ›Tax efficiency helps taxpayers pay the least amount of tax possible as required by law. Tax equity relates to the principle that all taxes should be fair for everyone.
Why is a tax-efficient? ›The inefficiency of any tax is determined by the extent to which consumers and producers change their behavior to avoid the tax; deadweight loss is caused by individuals and firms making inefficient consumption and production choices in order to avoid taxation.
How can I reduce my taxes if I make over 100k? ›Max Out Your Retirement Contributions
Employer-based accounts such as 401(k) and 403(b) plans allow you to lower your taxable income easily. That's because every dollar you put into these accounts is not taxed until you withdraw the money from your account—and that reduces your tax burden each year you contribute.
Be Super-Rich. Finally, it's quite easy to pay no income taxes if you're extremely rich. In our tax system, money is only subject to income tax when it is earned or when an asset is sold at a profit. You don't have to pay income taxes on the appreciation of assets like real estate or stocks until you sell them.
Does a Roth IRA reduce taxable income? ›Contributions to a Roth IRA aren't deductible (and you don't report the contributions on your tax return), but qualified distributions or distributions that are a return of contributions aren't subject to tax. To be a Roth IRA, the account or annuity must be designated as a Roth IRA when it's set up.
How to avoid paying taxes on interest income? ›- Investing in a tax-deferred account such as a traditional individual retirement account or a 401(k).
- Stashing money in a tax-exempt account such as a Roth 401(k) or a Roth IRA.