It’s Tax Season
April 15 will be here before you know it. You should be receiving several documents you will need for filing your taxes.
There are other records that may be necessary, but these are a few to keep in mind as you gather your files.
The first thing you should look for is your W-2 Wage and Tax Statement, or 1099 if you’re a contracted worker. This statement shows how much you earned in 2023 and how much tax was withheld from your earnings. You should have received this no later than January 31st. If you haven’t received them yet, please contact your employer!
Then look to see if you received any other Form 1099s which show other income received. 1099 DIV shows any dividends received, while 1099 MISC shows miscellaneous payments received if self-employed and having received over $600 from any one client. 1099 G shows money or benefits received from the government and 1099 K reports third-party transactions received through a credit card or third-party processor such as PayPal. 1099 R shows distributions from retirement plans, IRAs, pensions, etc. It may also show a summary of proceeds, gains, losses, adjustments and withholdings from investment accounts.
If you’re looking for those records on your accounts managed by us, they are available on Schwab Alliance, or just let us know you’d like some assistance and we’ll make sure you have the documents you need.
If you own a partnership interest, Schedule K-1 is issued annually to report each partner’s share of the partnership’s earnings, losses, deductions, and credits. If it is a complex partnership, these documents can take months to prepare, and often require partners to file for a tax return filing extension.
SSA 1099 shows Social Security collected.
Documentation is important if you want to take certain tax deductions so gather all the necessary records and forms needed. If you made contributions to an IRA, use Form 5498. Form 1098 shows your Mortgage Interest. If you are paying student loan debt, you will need Form 1098 E. Also, gather your medical bills, educational expenses, and receipts for state and local taxes.
You will receive 1095 A if you are enrolled through the Marketplace for health insurance and 1095 B if you are an individual covered by a health insurance provider. Form 1095 B is used to verify on your tax return that you and your dependents have at least minimum qualifying health insurance coverage. You will receive 1095 C if your employer offers health coverage.
In addition, collect bank or financial institution statements; last year’s state refund amount (this is income if you itemize your deductions); miscellaneous income from awards or winnings; quarterly estimated tax payment receipts, mileage records, and home office expenses.
Now you will be ready to make this year’s tax filing as painless as possible for yourself and your tax preparer!