checklist

It’s mind-boggling to think that yet another year ended. The holidays have come and gone, and 2018 is now here. You know what that means – tax season is upon us! The IRS has still been tight-lipped as to the first day to file your 2017 taxes. Even though they seem to be in no hurry to share the official start of tax season, it’s coming whether we like it or not. With tax season right on the doorstep, what forms should you start gathering so you’re all ready to go when filing time arrives?

W-2

Whether you’ve only had one job all year or several jobs over the course of the year, make sure to you have a W-2 form from each employer you worked for during 2017. This form summarizes all of your earnings for the year as well as the taxes you’ve already paid to Uncle Sam through your withholdings in your weekly paychecks. W-2s only apply to employees, so if you were an independent contractor, you won’t receive a W-2 form. We will talk more about what you need in just a few minutes. Employees can expect to receive their W-2 forms the  beginning of February since employers are required to mail them out by the end of January. If February rolls around and you still haven’t received your W-2 form, talk to your HR department. If you’re waiting on a W-2 form from a previous employer, give them a call and make sure they had the correct mailing address. You’re going to need those forms in hand in order to file your taxes!

1099 Forms

Earlier, I mentioned that independent contractors wouldn’t receive a W-2 form to report their wages. Their wages are reported on a 1099 form. All independent contractors who make $600 or more throughout the year are required to receive a 1099 documenting their wages. It may be helpful to make a list of organizations you should receive a 1099 form from so that you can tick the names off as the forms roll in. Then, if a couple are missing, you will be able to contact those organizations and request the needed forms. Those who have made a withdrawal from a taxable retirement account, have received unemployment benefits, or have received a dividend from your stock portfolio during 2017 will also need a 1099 form.

1098 Forms

Have you paid mortgage interest on a loan for your home during 2017? It may be beneficial to use those interest fees as a tax deduction. How can you do that? Well, you’ll need a 1098 form from your mortgage company. This form will contain all of the tax-deductible interest payments made on your mortgage throughout the year. Many times, this form will arrive the same time as your monthly statement, so just be on the lookout for it come January or February.

1098-E Form

If you’ve been paying on student loans, you’ve made interest payments in addition to the principle. The good news? Those interest payments are tax deductible! To take advantage of this deduction, you’ll need to know just how much you’ve paid in interest throughout the year. To know this amount, your loan company will send you a form 1098-E. This will notify you of the deductible amount paid in interest. Again, this form will probably arrive along with your monthly statement, so just be on the lookout for it. If you don’t receive it by January or February, contact your loan company and request an additional copy.

5498 Form

If you’ve been contributing to a retirement account or an education savings account, you’ll be receiving a summary of your contributions for tax purposes. These contributions are tax-deductible, but you’ll need this form in order for you or your accountant to file taxes. Because deductible contributions for your IRA cut off on April 17, 2018 and not December 31, 2017, these forms will likely be the last ones to arrive. Many times, they don’t arrive until late into April. Since this is the case, many people will need to file an extension for their taxes to take advantage of these deductions. If you have questions about how to handle these forms and their deductions, call our office. We would be happy to help.

1095-A,B, or C Form

The Affordable Care Act (also known as “ACA” or “Obamacare”) was enacted in 2010. The purpose of the legislation was to make healthcare affordable for everyone. One of the mandates the legislation enforces is, that in order to file a tax return, filers must show proof of insurance or pay a stiff penalty. That’s where these forms come in handy. Whether you are insured through your employer or privately insured through an insurance company or marketplace, these forms serve as your proof of insurance for the year. Be on the lookout for this form in the mail and be sure to stash it with your other tax forms. You’ll want to have it in hand when you file your taxes or meet with your accountant to file.

filesOf course, there are countless other forms out there, this is just a short run-down of some of the most basic forms to expect. There are numerous versions of the 1099 form previously mentioned – 1099-MISC, 1099-INT, 1099-DIV, etc. If you’ve received wages from a partnership or S-Corporation, you’ll receive a schedule K-1 form. Like I said, the possibilities are endless. Luckily for you, Wealth Builders CPAs and Consultants specializes in all things taxes. Our tax and financial experts are gearing up for the 2018 filing season are ready to answer any and all tax related questions you may have. Just give us a call to schedule a free consultation today! We have some specials for new and existing customers you don’t want to miss out on. Check them out! Let Wealth Builders take the stress out of tax season this year!

Don’t miss a thing! Follow us on LinkedInTwitter, and Facebook for the latest scoop on all things taxes!

New Direction IRA, Inc., https://newdirectionira.com/ira-info/contributions/traditional-ira.

Bell, Kay. “A Rundown of Tax Documents You’ll Need to File Your Tax Return This Season.” Bankrate, 16 Jan. 2017, www.bankrate.com/finance/taxes/your-tax-documents-are-in-the-mail-1.aspx.

Caldwell, Miriam. “What Forms Do I Need to File My Taxes?” The Balance, 20 Dec. 2017, www.thebalance.com/what-forms-do-i-need-to-file-my-taxes-2385783.