The Dow Jones Industrial Average and S&P 500 were both up about 1% for the first full trading week of the new year. The Nasdaq was up over 2%. While this is only the first week of the year, we will watch closely how the major indices perform for the rest of the month. There’s an old saying: As goes January, so goes the year.”
Most of the focus last week was on the first phase China trade deal that is to be signed later this week. The markets also recovered after a selloff in stocks due to Iran’s firing missiles at a U.S. airbase in Iraq. The missiles were fired in retaliation for a US. drone strike that killed a high ranking Iranian general.
I’ve been reviewing the recently passed Secure Act and will be writing more on it in the coming weeks. There are many items that will benefit investors and a few that will make you grumble. And don’t forget, fourth quarter 2019 earnings season is set get underway this week.
Tax Season Update
Yes, it’s that time of year again. Soon, 1099’s will be issued from our custodian Charles Schwab and other providers. The IRS has announced the tax season will open on Monday, January 27th 2020. That is the first day the IRS will begin to accept electronic returns.
The due date for 2019 federal income tax returns is April 15th, 2020 for most individual taxpayers. Unfortunately, April 15th falls on a Wednesday this year so there is no extra time before the filing deadline. The IRS expects to process more than 150 million individual tax returns.
We always encourage our clients to not rush into filing their tax return early. It is not uncommon for companies to reissue “amended 1099’s”. When Schwab receives any updated information, they are required to pass it along to you as our client. No one wants to be in a position where they need to file an amended tax return.