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Tax Forms That Arrive in the Mail
Depending upon your individual situation, you may or may not receive a lot of tax-related forms in the mail this year. People who work for more than one employer can expect to receive a W-2 from each business by the end of January. If you have investments, own your own business or receive income from other sources, you can expect to find more and more forms clogging up your mailbox between January and February. Getting yourself acquainted with what forms you can expect to receive as well as what these forms are reporting will go a long way toward helping you when you finally sit down to tackle your tax return.
If you have investments, or even a simple bank account, you can expect to receive a Form 1099 from each bank, company and fund you invested with this year. So not only may you receive a lot of Form 1099s if you have a tendency to invest your money, but there are a variety of 1099s you may receive, each indicative of its nature.
- Form 1099-INT - This form is usually received from banks and reports the amount of interest you earned during the tax year. If you do not receive a Form 1099-INT from a company you received interest from during this tax year, you are still required to report it on your Form 1040.
- Form 1099-DIV - These forms are usually received from mutual funds, brokers and companies with whom you have invested and report the dividends you received during the year. This income is reported on a Form 1040.
- Form 1099-B - This form reports stock and security sales. It lists all the investments you sold during the year as well as the amounts you received from the transactions. Stock and security sales are reported on Schedule D. You list the cost of your security as the total amount you paid, including commissions and fees.
- Form 1099-G - State refund taxes, unemployment compensation and other payments made to you by the government are reported on this form. You must complete the State and Local Income Tax Refund Worksheet included in the Form 1040 instructions to det5eremine if your tax refund has to be included on your return.
- Form 1099-MISC - This form reports such incomes as royalties, rental and self-employment income. The kind of income reported will determine which schedule you report this income on. For example, royalties and rental income should be reported on Schedule E, while self-employment income should be reported on Schedule C.
- Form 1099-R - This form reports distributions from IRAs and other retirement plans. Be careful here, determining the right amount of pension income to report can be tricky.
- Form 1099-SSA - This form reports any social security income you may have received for the year. To determine if, and if so how much, you must report on your tax return, fill out the Social Security Benefits Worksheet in the instructions for Form 1040.
Still, there are yet more types of income that you may or may not receive forms for, but are still required to report in your tax return.
- Alimony Income - report this on Form 1040.
- Income From Your Own Business - You must report this income even if you did not receive a Form 1099-MISC for it. Your business income and expenses are reported on Schedule C (Schedule F if your business is farming.)
- Rental Property Income - You should receive a Form 1098, Mortgage Interest Statement, if you make mortgage payments on rental property. This income and related expenses should be reported on Schedule E.
- Income From Partnerships and Estates or Trusts - You are the Beneficiary For - You should receive a Schedule K-1 reporting this income from each partnership, eastate or trust you are a part of. Report this income on Schedule E.