Important Tax Information
If possible, we recommend clients wait until late March to report their stock transactions and file their taxes. If you file earlier, you may have to file an amended tax return.
In the charts below, you’ll find information about your tax documents for accounts in the Azzad Ethical Wrap Program and accounts holding the Azzad Funds.
For information about taxable accounts and IRAs, scroll down on this page to our Tax FAQ.
The video below can help explain which documents you’ll need to file tax returns related to your investments.
Ethical Wrap Program
Tax Documents
1099-R form (all IRAs)
Posting Date
- No later than January 31
Additional Information
- Form 1099-R shows distributions from IRAs. An email is forwarded to alert you when this form is posted to your account online. Please review and call your advisor if you believe there are any discrepancies.
If my account is held at Folio, where can I download it?*
- folioclient.com
- Log into your account.
- Click on the “Statements and tax records” tab at the top of the page.
- Click on “Tax center”
*If not at Folio, log into your broker/custodian’s website. Your broker/custodian maintains your account statements and tax records.
*The folio instructions are repeated throughout this website page.
Tax Documents
1099 forms (taxable accounts)
Posting Date
- Expected to be no later than February 28, but may be as late as March 15
Additional Information
- 1099s show capital gains, interest, dividends and other taxable amounts.
Note: if your account is held at Folio, you’ll generally only need the summarized 1099 information which is contained in the first two pages. *Corrections to 1099s may be issued when companies reclassify prior year distributions. Neither broker, nor advisor has control over this.
If my account is held at Folio, where can I download it?*
- folioclient.com
- Log into your account.
- Click on the “Statements and tax records” tab at the top of the page.
- Click on “Tax center”
*If not at Folio, log into your broker/custodian’s website. Your broker/custodian maintains your account statements and tax records.
Tax Documents
IRS Form 8949
Posting Date
- Expected to be no later than February 28, but may be as late as March 15
Additional Information
- These reports contain your taxable account’s cost basis information as reported to the IRS. It shows sales and other dispositions of capital assets, capital gains and losses, and replaces the gain/loss reports of prior years.
If my account is held at Folio, where can I download it?*
- folioclient.com
- Log into your account.
- Click on the “Statements and tax records” tab at the top of the page.
- Click on “Tax center”
*If not at Folio, log into your broker/custodian’s website. Your broker/custodian maintains your account statements and tax records.
Tax Documents
Required minimum distributions (retirement plans)
Posting Date
- Required minimum distributions (retirement plans)
Additional Information
- The last day to withdraw funds for first-time required minimum distributions is April 1 and December 31st if over age 72 for subsequent years. If you are age 72, you must take out RMDs from all retirement accounts except Roth IRAs.
Where can I download it?
- folioclient.com
- Log into your account.
- Click on the “Statements and tax records” tab at the top of the page.
- Click on “Tax center”
Azzad Mutual Funds:
Tax Documents
1099-R Form (all IRAs)
Posting Date
- No later than January 31
Additional Information
- Form 1099-R shows distributions from IRAs. 1099 forms are mailed out by our transfer agent. If you did not receive your form or believe there is a discrepancy, please call 888.350.3369.
Tax Documents
1099 Forms (taxable accounts) Azzad Ethical Fund (ADJEX)
Posting Date
- No later than January 31
Additional Information
- 1099 forms are mailed out by our transfer agent. If you did not receive your form or believe there is a discrepancy, please call 888.350.3369.
Tax Documents
1099 Forms (taxable accounts) Azzad Wise Capital Fund (WISEX)
Posting Date
- No later than January 31
Additional Information
- 1099 forms are mailed out by our transfer agent. If you did not receive your form or believe there is a discrepancy, please call 888.350.3369.
Taxable Accounts
- What are taxable accounts?
Taxes must be reported and paid on accounts such as individual, joint, custodial (UGMA/UTMA), trusts and various corporate accounts. You must pay capital gains taxes on any realized gains as well as on any dividends or interest generated in the account. - What is the new cost basis legislation?
Congress passed the Emergency Economic Stabilization Act of 2008 (TARP) which included significant new tax reporting requirements for broker dealers, mutual funds and others with respect to their customers’ transactions. These requirements will be phased in beginning year 2011. - How will the new cost basis legislation affect wash sales?
The new cost basis regulations require that brokers adjust tax lots as a result of wash sales that occur with an identical security in the same account. Wash sale rules apply only to losses. Note: the wash sale rule applies across multiple accounts. You are not allowed to claim the loss that results from a wash sale. The disallowed loss amount is reported to the IRS. - What are “covered” and “noncovered” securities?
Stocks purchased on or after 1/1/2011 in taxable accounts are considered “covered” securities. Those purchased prior to that effective date, are “uncovered securities”. Mutual Funds purchased on or after 1/1/2012 in taxable accounts are considered “covered” and those purchased prior to that date are considered “uncovered” securities. You are responsible for reporting the cost basis for all covered and uncovered securities to the IRS on your tax return. - What information do I need for my taxes?
For taxable accounts, you will need your 1099 Form and Form 8949. These Forms can be downloaded online by clicking on the Statements & Tax Records tab at the top of the page. Please remember to select the proper year. The Ethical Wrap Program’s 1099 Form is a single document with sections for the IRS Forms 1099-DIV, 1099-INT, 1099-MISC, 1099-OID and 1099-B. The 8949 Form includes your account’s cost basis information. - How has my 1099 Form changed?
Our broker has redesigned the 1099-B Form to report sales in the same categories that are used when preparing your taxes. The new form categories match those found on the redesigned IRS Schedule D and Form 8949. Although the IRS requires that our broker report cost basis for covered securities only, they’ve included gain/loss information for noncovered securities in your account as well, since you will still have to report this information to the IRS in order to complete your taxes. - Why am I receiving a corrected 1099?
You should check your Form 1099 before filing because amendments to Form 1099s are frequently issued, especially if you hold REITs or mutual funds. There may even be multiple amendments made to your Form 1099 before the tax filing deadline. Therefore, we strongly suggest that you wait until at least the end of March before downloading your Form 1099 in order to allow any reclassifications or corrections to his Form 1099 to occur. You will be emailed when your Form 1099 has been amended. Our broker has no control over the reclassifications that cause 1099 amendments and you may have to amend your return if you file early.
IRA Accounts
- To which year do my IRA contributions apply?
IRA contributions received between January 1 and December 31 are automatically designated as contributions for the year they are received in. If you intend for any contributions sent between January 1 and April 15 to go toward the previous year’s contribution, you must indicate this on your check. If contributing by electronic deposit (EFT, wire or billpay) you must send us an email in a timely manner (no later than April 15) referencing the contribution. - Can I still open and contribute to an IRA for the previous tax year, this year? (for example, can I open an IRA for 2018 even though it’s 2019)?
Can I still open and contribute to an IRA for the previous tax year, this year? (for example, can I open an IRA for 2021 2018 even though it’s 2022 2019)? If you are eligible to open an IRA (you are younger than 70.5 and have earned income), then you may open your IRA and contribute to it up until tax day, April 15 8 (even if it is for the previous year). For example, you may open and fund your 2021 2018 IRA in year 2022 2019 as long as you do so before April 15 8. If you are funding your IRA by check, you must mark the year you intend the contribution to be applied. If you are funding your IRA electronically, you must call the custodian to ensure that it is properly coded. Otherwise, the custodian will apply it to the year it is received. - Can I convert from a Traditional IRA to a Roth IRA?
- Please check with your financial advisor adviser representative for more information.
- Last year, I contributed to a nondeductible IRA and immediately converted it to a Roth IRA. Why am I receiving a 1099-R?
A 1099-R is generated anytime money is taken out of an IRA (regardless of the reason). You must report the nondeductible IRA contribution on Form 8606. You must also report the conversion using form 1099-R. Remember, just because you receive a 1099-R does not mean you owe taxes. It does mean that your distribution is tax reportable (whether or not it is taxable depends on your specific situation). Please consult your tax professional for more information. - What is a 1099-R Form?
It can be downloaded online from your broker’s website online filing cabinet. - What is a 5498 Form?
You should review the form and report any discrepancies to the broker as soon as possible. us as soon as possible. - What is an excess contribution?
An excess contribution is the amount that was contributed to your IRA for the tax year that is greater than your maximum allowable contribution (the maximum amount includes the lesser of your IRA contributions or taxable compensation for the year). - What is a required minimum distribution?
A required minimum distribution is the minimum amount that the IRS requires all IRA owners (except Roth IRA) to withdraw from their accounts once they reach age 72. Your account’s RMD is calculated for you by our broker and available online in your filing cabinet. You must withdraw this amount generally before the end of the calendar year or you will owe a penalty. Please consult with your tax professional for more information.
Key 2021 and 2022 Retirement Savings Numbers
Certain retirement plan and IRA limits are indexed for inflation each year, but only some limits eligible for a cost-of-living adjustment have increased for 2022. Some of the key numbers for 2022 are listed below, with the corresponding limit for 2021. (The source for the 2022 numbers is IRS Notice 2021-61.)
Elective deferral limits | 2021 | 2022 |
401(k) plans, 403(b) plans, 457(b) plans, and SAR-SEPs1 (includes Roth contributions) | Lesser of $19,500 or 100% of participant’s compensation ($26,000 if age 50 or older)2 | Lesser of $20,500 or 100% of participant’s compensation ($27,000 if age 50 or older)2 |
SIMPLE 401(k) plans and SIMPLE IRA plans1 | Lesser of $13,500 or 100% of participant’s compensation ($16,500 if age 50 or older) | Lesser of $14,000 or 100% of participant’s compensation ($17,000 if age 50 or older) |
IRA contribution limits | 2021 | 2022 |
Traditional and Roth IRAs | Lesser of $6,000 or 100% of earned income ($7,000 if age 50 or older) | Lesser of $6,000 or 100% of earned income ($7,000 if age 50 or older) |
Defined benefit plan annual benefit limits | 2021 | 2022 |
Annual benefit limit per participant | Lesser of $230,000 or 100% of average compensation for highest three consecutive years | Lesser of $245,000 or 100% of average compensation for highest three consecutive years |
Defined contribution plan limits (qualified plans, 403(b) plans, and SEP plans) | 2021 | 2022 |
Annual addition limit per participant (employer contributions; employee pre-tax, after-tax, and Roth contributions; and forfeitures) | Lesser of $58,000 or 100% (25% for SEP) of participant’s compensation | Lesser of $61,000 or 100% (25% for SEP) of participant’s compensation |
1 Must aggregate employee deferrals to all 401(k), 403(b), SAR-SEP, and SIMPLE plans of all employers; 457(b) contributions are not aggregated. For SAR-SEPs, the percentage limit is 25% of compensation reduced by elective deferrals (effectively a 20% maximum contribution).
2 Special catch-up limits may also apply to 403(b) and 457(b) plan participants.
Retirement plan compensation limits | 2021 | 2022 |
Maximum compensation per participant that can be used to calculate tax-deductible employer contribution (qualified plans/SEPs) | $290,000 | $305,000 |
Compensation threshold used to determine a highly compensated employee | $130,000 (when 2021 is the look-back year) | $135,000 (when 2022 is the look-back year) |
Compensation threshold used to determine a key employee in a top-heavy plan | $1 for more-than-5% owners $185,000 for officers $150,000 for more-than-1% owners | $1 for more-than-5% owners $200,000 for officers $150,000 for more-than-1% owners |
Compensation threshold used to determine a qualifying employee under a SIMPLE plan | $5,000 | $5,000 |
Compensation threshold used to determine a qualifying employee under a SEP plan | $650 | $650 |
Income phaseout range for determining deductibility of traditional IRA contributions for taxpayers: | 2021 | 2022 |
1. Covered by an employer-sponsored plan and filing as: |
|
|
Single/Head of household | $66,000 – $76,000 | $68,000 – $78,000 |
Married filing jointly | $105,000 – $125,000 | $109,000 – $129,000 |
Married filing separately | $0 – $10,000 | $0 – $10,000 |
2. Not covered by an employer-sponsored retirement plan, but filing joint return with a spouse who is covered by a plan | $198,000 – $208,000 | $204,000 – $214,000 |
Income phaseout range for determining ability to fund a Roth IRA for taxpayers filing as: | 2021 | 2022 |
Single/Head of household | $125,000 – $140,000 | $129,000 – $144,000 |
Married filing jointly | $198,000 – $208,000 | $204,000 – $214,000 |
Married filing separately | $0 – $10,000 | $0 – $10,000 |
Key 2021 and 2022 Income Tax Numbers
Alternative minimum tax (AMT) | 2021 | 2022 |
Maximum AMT exemption amount | $114,600 (MFJ), $73,600 (Single/HOH), $57,300 (MFS) | $118,100 (MFJ), $75,900 (Single/HOH), $59,050 (MFS) |
Exemption phaseout threshold | $1,047,200 (MFJ), $523,600 (Single/HOH/MFS) | $1,079,800 (MFJ), $539,900 (Single/HOH/MFS) |
26% rate applies to AMT income (AMTI) at or below this amount (28% rate applies to AMTI above this amount) | $199,900 (MFJ/Single/HOH), $99,950 (MFS) | 206,100 (MFJ/Single/HOH), $103,050 (MFS) |
Standard deduction | 2021 | 2022 |
Standard deduction amount | $25,100 (MFJ), $18,800 (HOH), $12,550 (Single), $12,550 (MFS) | $25,900 (MFJ), $19,400 (HOH), $12,950 (Single), $12,950 (MFS) |
Standard deduction for dependent | Can’t exceed the greater of $1,100 or $350 + earned income | Can’t exceed the greater of $1,150 or $400 + earned income |
Additional deduction for aged/blind | $1,700 (Single/HOH), $1,350 (MFJ/MFS) | $1,750 (Single/HOH), $1,400 (MFJ/MFS) |
Top tax brackets | 2021 | 2022 |
Single | 37% of taxable income exceeding $523,600 + $157,804.25 | 37% of taxable income exceeding $539,900 + $162,718 |
MFJ | 37% of taxable income exceeding $628,300 + $168,993.50 | 37% of taxable income exceeding $647,850 + $174,253.50 |
MFS | 37% of taxable income exceeding $314,150 + $84,496.75 | 37% of taxable income exceeding $323,925 + $87,126.75 |
HOH | 37% of taxable income exceeding $523,600 + $156,355 | 37% of taxable income exceeding $539,900 + $161,218.50 |
Top capital gain tax rate (20%) thresholds | 2021 | 2022 |
Single | $445,850 | $459,750 |
MFJ | $501,600 | $517,200 |
MFS | $250,800 | $258,600 |
HOH | $473,750 | $488,500 |
Unearned income Medicare contribution tax (Net investment income tax) | 2021 | 2022 |
Amount of tax | 3.80% | 3.80% |
Applies to lesser of (a) net investment income or (b) modified adjusted gross income exceeding: | ||
Individuals | $200,000 | $200,000 |
Married filing jointly | $250,000 | $250,000 |
Married filing separately | $125,000 | $125,000 |
Standard mileage rates | 2021 | 2022 |
Use of auto for business purposes (cents per mile) | $0.56 | $0.585 |
Use of auto for medical purposes (cents per mile) | $0.16 | $0.18 |
Use of auto for moving purposes (cents per mile) | $0.16 | $0.18 |
Use of auto for charitable purposes (cents per mile) | $0.14 | $0.14 |
Key 2021 and 2022 Estate Planning Numbers
Here are some key numbers associated with estate planning, as well as the federal gift tax and estate tax rate schedules for 2021 and 2022.
2021 | 2022 | |
Annual gift tax exclusion: | $15,000 | $16,000 |
Gift tax and estate tax applicable exclusion amount: | $11,700,0001 + DSUEA2 | $12,060,0001 + DSUEA2 |
Noncitizen spouse annual gift tax exclusion: | $159,000 | $164,000 |
Generation-skipping transfer (GST) tax exemption: | $11,700,0003 | $12,060,0003 |
GST tax rate | 40% | 40% |
Special use valuation limit (qualified real property in decedent’s gross estate): | $1,190,000 | $1,230,000 |
1 The basic exclusion amount.
2 Deceased spousal unused exclusion amount (for 2011 and later years)
3 The GST tax exemption is not portable.
2021 and 2022 Gift Tax and Estate Tax Rate Schedule
Taxable Gift/Estate | Tentative Tax Equals | Plus | Of Amount Over |
0 – $10,000 | $0 | 18% | $0 |
$10,000 – $20,000 | $1,800 | 20% | $10,000 |
$20,000 – $40,000 | $3,800 | 22% | $20,000 |
$40,000 – $60,000 | $8,200 | 24% | $40,000 |
$60,000 – $80,000 | $13,000 | 26% | $60,000 |
$80,000 – $100,000 | $18,200 | 28% | $80,000 |
$100,000 – $150,000 | $23,800 | 30% | $100,000 |
$150,000 – $250,000 | $38,800 | 32% | $150,000 |
$250,000 – $500,000 | $70,800 | 34% | $250,000 |
$500,000 – $750,000 | $155,800 | 37% | $500,000 |
$750,000 – $1,000,000 | $248,300 | 39% | $750,000 |
$1,000,000 + | $345,800 | 40% | $1,000,000 |
Credit shelter amount: $11,700,000 in 2021, $12,060,000 in 2022 | Unified credit amount: $4,625,800 in 2021, $4,769,800 in 2022 | ||