How much house can you afford? What type of CD is best? By now you should be getting statements from employers, banks, documents for refund of income tax for the child’s education and other institutions or agencies that were involved in your finances last year. Most of these groups have, by law, until Jan.
Brokers get a little more leeway from the IRS. If you’re expecting a consolidated 1099, you may not get that until mid-February. Many taxpayers now receive these documents electronically. So be sure to double-check your email, not just the curbside mailbox, for these statements. RATE SEARCH: Looking for a high-yielding savings account? More health care statements If you or someone in your family had health coverage in 2016, you will get a 1095 form. Form 1095-A — If you, your spouse or a dependent enrolled in health insurance through a state or federal exchange, also referred to as the marketplace, you should receive Form 1095-A, Health Insurance Marketplace Statement.
The information on this new form is needed to complete Form 8962 and calculate your correct premium tax credit amount. Only individuals who bought medical insurance through the marketplace will receive this new form. If you do not get your Form 1095-A, contact the marketplace from which you purchased your coverage. This verification will help taxpayers avoid the penalty for not having coverage, known as the shared responsibility payment.
Common income, deduction statements Most taxpayers depend on the same basic data to file returns. If you work for someone else, the IRS expects you, and the agency, to get a statement detailing that income. The data are slightly different, depending on whether you get paid a salary or do contract work, but there’s a form for either case. W-2 — This is the key form, and you need one from each employer you worked for during the past year.
Your W-2 shows how much money you made, how much income tax was withheld, Social Security and Medicare taxes paid, and any benefit contributions — retirement plans, medical accounts and child care reimbursement plans. 1098 — For most homeowners, mortgage interest is tax-deductible, and this document will tell you how much you paid last year. Actually, your mortgage company probably won’t send you an official IRS form, but a document of its own design that contains the same data. RATE SEARCH: Shopping for a mortgage?
Compare mortgage rates today at Bankrate. 1098-E — Are you paying back a student loan? You may be able to deduct your student loan interest and possibly other loan-related amounts, such as origination fees and capitalized interest. 10 in interest on a bank account or a certificate of deposit, you’ll get one of these forms for each account. Don’t dismiss this statement if you reinvested the interest. Tax law says you received the income even if you didn’t actually have it in your hand, and reinvested earnings are still taxable income.
RATE SEARCH: Stretch your retirement income with a CD ladder. 1099-DIV — Earnings from individual stocks and mutual funds are reported on Form 1099-DIV. As with reinvested interest, if you used the dividends or distributions to buy additional shares of the stock or mutual fund, you still have to pay taxes. 1099-B — If you sold stocks, bonds or mutual funds, you will receive a 1099-B from your broker or mutual fund company. This will tell you the number of shares sold, when they sold and the amount you got for the sale.
You’ll need this information, along with the date you bought the shares and the amount you paid for them, to figure your taxes. 1099-G — Taxpayers who got a refund of state or local taxes last year will get this form. If you used those taxes as a deduction on your previous year’s federal income tax return, you’ll need to report the 1099-G amount on this year’s return. 1099-R — If you received a pension or a distribution from an individual retirement account or retirement plan, the 1099-R provides the details of these transactions.
The form is issued by your broker, pension plan manager or mutual fund company. 600 or more should get a 1099-MISC from each company with which they did business. You should get a separate 1099-MISC for each independent job you had during the previous tax year. Late-arriving forms There are a couple of statements you might need for your tax records, but because of the intricacies of the financial arrangements they cover, the documents do not always arrive before the April filing deadline. But if you get an extension to file, you shouldn’t have any issues. Form 5498 — Any contributions made during the calendar year to any individual retirement accounts are reported on this form.