This time of the year we do not recommend putting your mail in a stack to review weeks or months later. Tax forms are flooding the postal system this January on their way to taxpayers. Companies and other organizations have a deadline to send those documents by January 31st. Here are a few of the IRS form you are likely to see and will need for tax preparation if they apply to your situation:
· W-2 – Employers report wages and other earnings and include what you paid in taxes in 2014 on this form.
· 1099-INT and 1099-DIV – Financial institutions or other organizations that paid you interest or dividends file this form to report income that needs to be included on your tax return.
· 1099-B – Proceeds from stock sales as well as your cost basis (depending on the transaction) is reported on this form.
· 1099-C – If any debt was cancelled in 2014 you will receive one of these forms to report on your tax return.
· 1098 – Mortgage interest paid throughout the year is reported on this form. Keep in mind only interest is deductible, not mortgage principal payments.
· 1098-E – Student loan interest can be tax deductible (depending on income levels) and amount paid is provided on this form. Holding multiple loans will result in multiple 1098-Es being issued.
· 1098-T – Educational institutions report tuition payments received throughout the tax year on this form for yourself or your dependents.
Many of these forms will be available electronically in advance of the mailings so be sure to check online as well. Also, review the forms as mistakes can be made. The employer or issuing organization is required to correct them if you discover an error. If you need a complete list of items needed for tax preparation feel free to contact us.