January 31, 2023
Be On the Outlook for Tax Reporting Forms
Article Highlights:
- Form W-2
- Form W-2G
- Form 1099-G
- Form 1099-MISC
- Form 1099-DIV
- Form 1099-INT
- Form 1099-B
- Form 1099-S
- Form SSA-1099
- Form RRB-1099
- Form 1099-R
- Form 1098-T
- Form 1095-A
- Form 1099-NEC
- Form 1099-K
- Schedule K-1
With tax season upon us, documents reporting income, sales and other items needed for your 2022 tax return should have arrived or will be arriving soon. Be on the lookout for them and be careful not to accidently discard any. Here are some of the common tax forms you need to be watching for depending upon your particular circumstances.
Form W-2 - If you were employed in 2022, you will receive a W-2 from each of your employers. Not only does this form report your wages, but also the income tax that was withheld from your paychecks and which will be a credit against your tax liability.
Form W-2G - If you had gambling income more than the IRS gambling winning reporting thresholds, you will receive one or more Form W-2Gs. In fact you may have already received one from the gambling entity at the time you won.
Form 1099-G – This form is used for reporting income and refunds from several sources including:
- If you received a state income tax refund in 2022 from your 2021 return, the state will issue a Form 1099-G reporting the refund amount, which may or may not be taxable income on your 2022 federal return. If you itemized your deductions on your 2021 federal return, the state refund will most likely be taxable for federal.
- You will also receive a Form 1099-G showing the amount of any unemployment benefits you may have received in 2022, which are taxable for federal purposes. Some states also tax these payments.
Form 1099-MISC - You may receive a Form 1099-MISC for miscellaneous income received during 2022. This income will need to be reported on your tax return, but in some cases expenses may be deductible against this income.
Form 1099-DIV – If you have stocks or mutual funds that pay dividends, they are typically reported on Form 1099-DIV.
Form 1099-INT – If you received interest income in 2022, typically from bank savings accounts, or other investments, you will receive a 1099-INT showing the taxable amount of interest you earned. Although banks and other financial institutions aren’t required to issue a 1099-INT form if the interest you earned is less than $10 for the year, you are still required to report the interest income on your tax return.
You may receive a 1099-INT reporting interest paid to you by the IRS because of a delay in their processing your 2021 tax return. This interest is taxable on both your federal and state returns.
If you cashed in U.S. savings bonds during 2022 through an account with the government’s TreasuryDirect, you will need to retrieve your 1099-INT from your TreasuryDirect online account since the government is not sending paper 1099-INT forms for these redemptions. This interest is taxable on your federal return but not your state return.
Form 1099-B – Where you sold securities during 2022 you should receive a 1099-B providing all the details of your sales for the year.
NOTE: If your investments are with a brokerage firm, you will generally receive a substitute reporting form, listing all the stock and security sales, interest, dividends, and other investment information needed for your 1040 preparation.
Form 1099-S - If you sold your home during the year, you may receive a Form 1099-S showing the sales price. Sometimes the escrow company issues the 1099-S at the closing of the sale, so check your closing documents to see if you already have the form.
Form SSA-1099 - If you received social security benefits during 2022, you will be receiving a Form SSA-1099 showing the amount received, any social security benefit adjustments, and the amount of Medicare insurance premiums withheld from your monthly benefits.
Form RRB-1099 – Is the equivalent of Form SSA-1099 for railroad retirement benefits.
Form 1099-R - Reports retirement plan benefits you received, including IRA distributions. Generally, the taxable amount is also included on the Form 1099-R.
Form 1098-T - If you paid college tuition for yourself or a dependent, you will generally need the Form 1098-T that will be sent to you by the educational institution to claim an education credit.
Form 1095-A - If you obtained your health insurance through a government marketplace, you should receive a Form 1095-A that is needed to reconcile your advance premium tax credit, and used to reduce your 2022 premiums.
Form 1099-NEC - If you were self-employed in 2022, businesses that paid you $600 or more will be issuing you a Form 1099-NEC, some even if the amount they paid you is less than $600.
Form 1099-K - If your business accepts credit cards, debit cards, as well as PayPal or other third-party payments, you may receive a Form 1099-K showing those sales for the year. Even if you don’t have a business, you may receive a 1099-K, if you received income through one of these or similar sources, such as when you sold items online or the income was reimbursement for personal expenditures or a gift to you from a friend or relative. These non-business-related payments may need to be reported on your return, but may not be taxable or may be only partly taxable.
Schedule K-1 - If you are a partner in a partnership, shareholder in an S-Corporation, or a beneficiary of a trust, you will also receive a Schedule K-1 from the entity, showing information from the entity that will be needed to prepare your personal return. You may also receive Schedules K-2 and K-3. These forms may be delayed, since they won’t be available until after the partnership, S-Corporation, or trust’s tax return has been prepared.
The IRS also receives copies of these documents. If the information on these documents is not reported correctly on your tax return, you will hear from the IRS at a later date.
If you don’t receive an income-reporting Form 1099 or schedule that you were expecting, you should check to see if it is available from the payer online. Even if you don’t receive the form, you are still required to report on your tax return the income that you received from that payer or business.
Please call this office if we can be of assistance.
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