If you’re ready to file your taxes, you need to make sure you’ve got all of your forms together. There can be quite a few, so you need to double-check to ensure you’ve got everything. One missing form can make the entire process that much more painful, so here are five essential end of year tax forms you should ask for.
1. 1098-E Student Loan Interest Form
This form is often forgotten by students, but it’s an important one. If you’re starting to pay back your student loans, they’re accruing interest with every year that passes. If you’ve paid at least $600 in interest during the previous year, you’ll need to get your 1098-E form to file your taxes. If you have more than one servicer for your student loans, which isn’t common, you might have multiple 1098-E forms you’ll need to track down.
Normally, these forms are mailed out by the end of January, but some servicers simply send them electronically either via email or within their online portals. Be sure to check all three options and make sure you’ve got this form! You can deduct up to $2,500 in student loan interest payments from your income, so you definitely don’t want to forget this form.
2. 1095-A Health Coverage Form
Another of your essential end of year tax forms is your 1095-A. If you used the health insurance marketplace last year, you’ll need this form to file your taxes. This form contains information on the premiums you paid, the tax credit you received for your coverage, and more. This important to figuring out whether or not you’ll owe a difference in what was paid and what you actually qualify for. Don’t file without this essential form!
3. Form 1098 for Mortgage Interest
If you own your home, you’ll need your 1098 Form to file taxes accurately. This form tells the IRS how much mortgage interest you paid to your lender last year, which is deductible from your taxable income. Without it, you won’t be able to qualify for certain deductions, since the IRS won’t know how much is going out in interest payments.
A 1099 form is where you report your income, but a 1099-INT is sent from a financial institution that paid you interest over the course of the year. This form tells the IRS how much you earned from your savings account or other financial resource’s interest payments. This still counts as income, and if often overlooked by taxpayers. If you haven’t received a 1099-INT and you know your bank paid you interest last year, be sure to get in touch with them to see where your forms are at.
Many banks have switched to paperless banking, and this may include forms like the 1099-INT. You can usually find this form under the “tax forms” tab in your online portal.
If you’re self-employed or are earning extra income through any non-conventional means, you’ll need a 1099-MISC form. Royalties, commissions, rents, and more are included in this form, and it’s crucial if you’re earning income from anywhere other than your place of employment. All non-employee income that does not come from investments is included. Don’t leave this form out, as the IRS will want to know where all of your extra income is coming from!
Not to mention, certain incomes don’t have tax automatically taken from them, so you’ll need to report the income to see if you owe anything on it (which you likely do).
Tax time can be hectic, but by knowing these essential end of year tax forms, you’ll be ready when you see your accountant. If you’re still using one of those big-time tax chain services, it’s time to get yourself a personal account for a more individualized, cheaper, and easier tax process. At Excellent Admin, we can help with all of your tax needs for a fraction of the price of the competition, but with no less attention to detail and customer service. Make the switch today for a better tax experience every year!