Do not file taxes until these 7 items are in place

Federal income tax filing season is officially underway. So, whether you’re using software to prepare your taxes online, or you’re planning to meet with a qualified tax professional, make sure you have the right documents on hand.

The IRS typically obtains copies of all forms in this article, so it’s important that the information you or your tax attorney enter on your tax return matches what is on other tax-related forms submitted to the IRS. am.

Below is a list of the most important documents you may need to file your 2022 Form 1040 U.S. Individual Income Tax Return due by April 18, 2023.

1. Form W-2

The Form W-2 Wage and Tax Statement lists the employee’s earnings and tax withholding for the previous year. However, if he has multiple employers, he will need a W-2 from each.

Most employers have a copy of the W-2 online. If not, please pay attention to your mailbox. Because companies need him to mail the W-2 by January 31st.

2. 1099 form of earned income

There are multiple types of 1099 forms that provide information about different types of income reported to the IRS.

The types of 1099 forms you may receive for earned income, or income earned from your work, include:

• 1099-NEC Non-employee Compensation: If you have your own business or work for another company as a contractor rather than an employee, this form lists the income you earned from the company or individual you worked for.
• 1099-K Payment Cards and Third Party Network Transactions: This form accepts payment for goods and services by credit card or uses third-party networks, such as reselling things on eBay or driving an Uber or Lyft for extra income It’s for people. In 2022 he received over $20,000 in payouts or processed over 200 transactions Small business owners, freelancers, and other gigs His workers expect this form from each platform they use need to do it.

It’s important to note that 1099 income over $600 is taxable even if you haven’t received it, and the IRS expects you to report such income.[T]The legal requirements for reporting income have not changed.

3. 1099 Employed Income Expense Documents

Under current tax law, employees, or workers who receive a Form W-2, cannot deduct unpaid work costs such as uniforms and union dues. However, workers who receive a Form 1099 can deduct eligible expenses related to their 1099 earnings.

For example, the cost of supplies, marketing, tools, or materials used in your business are deductible and reported on Schedule C, so it is important to keep records of such costs. If you drive in the course of business, detailed records are required to claim the standard mileage rate of 58.5 cents per mile for the first half of 2022 and 62.5 cents per mile for the second half of 2022. 2022.

4. Other 1099 Forms

Below are some of the most common 1099 forms you may receive for your often taxable unearned income.

• 1099-B Proceeds from Brokerage and Barter Transactions: If you sold securities or investments in the last year, the income received is reported here. Barter exchanges may also be listed here.
• 1099-C Debt cancellation: This form reports debts that have been settled and paid for less than the original amount, such as credit card debt and personal loans.
• 1099-DIV Dividends and Distributions: This form reports dividends or income received from investments held in banks or other financial institutions.
• 1099-G Certain Government Payments: If you lost your job last year and received unemployment income, or received a state rebate or government offset last year, you will receive this form.
• 1099-INT Interest Income: Any interest received totaling $10 or more will be reported on this form. This may include interest earned on savings accounts, certificates of deposit, or savings bonds redeemed.
• 1099-MISC Miscellaneous Income: This form is for types of income that do not have a dedicated 1099 form, such as winnings, rental income, or incentives over $600.
• 1099-R Pensions, pensions, retirement or profit sharing plans, IRAs, insurance policies, etc.: When you start receiving retirement income from your pension, a workplace plan such as a 401(k), or an individual retirement account (IRA), you’ll receive a 1099-R and the amount withdrawn. Look at the distribution code in box 7 to see why you withdrew the funds. This code indicates whether you have withdrawn your funds early and may be subject to penalties. Form 1099-R may be slightly different if you were in the military or worked for the federal government.
• 1099-S REVENUE FROM REAL ESTATE TRANSACTIONS: If you sold a home or other property in the last year, the details of that sale will be reported on this form.

5. 1099 Form for Social Security or Rail Benefits

If you receive Social Security benefits, you will receive Form SSA-1099 or Form SSA-1042S. This annual benefit statement shows the total amount of benefits you received in the previous year. If benefits were deducted to cover federal income tax or Medicare premiums, those totals will also be listed on the form.

Form SSA-1099 is usually mailed in January. If you can’t find yours, you can always get it from your social security account online.

However, if you receive benefits from the US Railroad Retirement Board (RRB), you may receive Form RRB-1099 instead. As with social security benefits, some rail benefits may be taxable. However, it is up to you (or your tax accountant) to decide if your RRB benefits are taxable.

6.1098 form

There are multiple types of 1098 forms that provide information about other types of financial transactions. In some cases, you may be able to deduct the amounts reported on some of these forms.

The types of 1098 forms are:

• 1098 Mortgage Interest Statement: Mortgage companies report interest payments on this form if you paid more than $600 last year. Rather than claiming a fixed standard deduction, you can deduct this by itemizing the tax deduction.
• 1098-C Motor vehicle, boat and aircraft contributions: Receive a 1098-C when you donate $500 or more in a car, boat or plane. However, such contributions are deductible only when itemized.
• 1098-E Student Loan Interest Statement: Most federal student loan borrowers have a payment hold since March 2020. However, if you have a private loan and paid interest during the last year, 1098-E may allow you to deduct student loan interest on your federal tax return. Up to $2,500 — regardless of whether you itemize or claim standard deductions.
• 1098-F Fines, Penalties and Other Amounts: Any fines, penalties or other refunds ordered to be paid by the court will be reported on this form. However, most of these amounts are not tax deductible.
• 1098-T Tuition Statement: If you paid for a course last year for yourself or one of your dependents, you can use your 1098-T to claim your education tax credit if you are eligible.

7. Other useful documents

Whether you choose to pay your taxes at home or hire a professional, you should have the following information and documents on hand before you begin filing your tax return.

• social security number: Requires Social Security Number or Individual Taxpayer Identification Number (ITIN) of eligible person claiming on tax return.
• bank account information: Remember to bring your bank routing number and checking or savings account number to receive your refund electronically. If you owe the IRS money, you can also make payments this way.
• tax payment: If you made a quarterly tax payment for tax year 2022, you must report the amount and date of payment on your tax return.
• previous year’s tax return: In most cases, if you are using the same software or tax office as last year, the information from your previous tax return will carry over to your current tax return.