Beyond the W-2: Common Tax Forms

Recently we posted a blog about understanding your W-2, which is probably the most common tax form out there. But there are a few others you should keep an eye on your mailbox for this year. While this is by no means an inclusive list (you can find a much more thorough one here), these are a few of the most common tax forms you might come across.

Form 1099-MISC

If you worked as a freelancer or independent contractor this year and earned a total of $600 or more from any one person or entity, you will get a Form 1099-MISC rather than a W-2 (or both, if you worked more than one job). The 1099-MISC is similar to a W-2 in that it shows the total amount you were paid during the year by a single person or entity and includes basic information like your name, address, and Social Security Number or EIN. If you preformed freelance work for several different companies throughout the year, you may receive more than one 1099-MISC. But don’t panic as the stack grows — just bring them all to us and we will help you sort them out.

Forms 1099-INT and 1099-DIV

If you have a checking, savings, or other financial account, your bank may send you a Form 1099-INT to show the interest you earned. Depending on the interest rate and the amount you keep in the accounts, this can be a considerable amount! If you have investments, look out for Form 1099-DIV. The financial institution that manages your investments will send this out to report any dividends or other distributions from investments you received. Again, you may get more than one of these forms if you have multiple accounts.

Form 1098

If you paid mortgage interest of $600 or more in 2015 on any real property, you may receive a Form 1098. If you have more than one mortgage, you may receive more than one. Take this form to your tax preparer with the rest of your documents — you can deduct your home mortgage interest on your taxes if you itemize your deductions! Your tax preparer can help you sort out the best option for you.

Forms 1098-E and 1098-T

Good news — your student loan interest is also tax deductible! If you made payments on your student loans in 2015, you will likely receive a Form 1098-E from each of your lenders if you paid at least $600 in interest to them during the year. If you’re still in school or pay tuition for someone who is, you will likely receive a Form 1098-T. This form reports “qualified education expenses” such as tuition, enrollment fees, and certain required course materials. This can provide you with a pretty hefty deduction, so make sure you keep an eye out for this form if you think it will be on its way.

Form 1095-A, B, and C

We’ve covered these Affordable Care Act (aka Obamacare) forms in another blog, but here are the main points. Depending on how you purchased your health insurance for 2015, you may receive one of these three forms this year. Form 1095-A will be issued to you if you purchased health insurance through the federal or state marketplace, and it’s the only one you need to file your taxes. Forms 1095-B and C are for your records only.

After you’ve collected all your tax documents, take them to a tax preparer you trust. We’re biased, but we think NextGenJustice is hands down the best choice for you. We have a business model that’s different from the rest of the tax industry, and we’re committed to making tax season simple and easy. Give us a call or stop by any of our store locations in New York or Florida to get started.

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PPS — Business owners — we’ve got you covered too. Start your business taxes here.

PPPS — If you’re a veteran entrepreneur, we’re offering free business income tax preparation for you — ‘nuff said. Click here to get started.

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