They all look the same! Here's some need to know information about your 2022 Tax Forms

If you received a tax document in the mail this month and were confused - you're not alone. Knowing the name, type, and purpose of each tax document can be confusing. In this article, we'll explain the names of some common tax documents, what they're for, and when you can expect them to arrive in your inbox. 


Most tax documents start arriving in the middle of January and through the middle of March.  Make sure to check your "snail" mail and your email inbox for tax notifications from your employer or investing platforms.  

Here are some common forms that you might receive: 

1099-B: Investment sales and capital gains, arrives in Jan through Mid-Feb

If you sell stocks, bonds, or other securities through a broker (in-person or via app), you can expect to receive one or more copies of Form 1099-B in January. This form is used to report gains or losses from transactions in the preceding year. The losses can actually help lower your tax liability, so make sure to include this form in your tax return. (Source: Intuit)

1099-DIV: Dividends received, arrives in Jan

The 1099-DIV form is sent by banks and other financial institutions to investors who receive dividends and distributions from any type of investment during a calendar year.  If you invest in several digital platforms, you can usually find this form in your "Documents" section. Investors can receive multiple 1099-DIVs. (Source: Investopedia) 

1099-INT: Interest over $10, arrives in Jan

A 1099-INT tax form is a record that a bank or other entity paid you interest. If you earned more than $10 in interest from a bank, brokerage, or other financial institution, you’ll receive a 1099-INT and you must report it on your tax return. (Source: NerdWallet) 

1099-G: Unemployment income, state, and local tax refunds, arrives in Jan

Federal, state, and local governments may issue you a Form 1099-G for certain types of government payments.  If you are drawing unemployment income from the state government, those unemployment benefits are subject to taxes.  If your state issues you a refund, credit or offset of state or local income, that amount will be on a 1099-G form. (Source: HR Block)

1099-NEC: Self-employment income, arrives in Jan through March

The 1099-NEC form is used to report any compensation given to non-employees by a company or for business purposes.  As a non-employee, most likely you can pick and choose when you want to work - no one job is going to tie you down!  A non-employee can be a freelancer, independent contractor, gig worker, or another service provider. (Source: The Balance)  

1099-R: Distribution from a retirement plan or IRA, arrives in Jan

The 1099-R form reports potentially taxable distributions from certain types of accounts, many of which are retirement savings accounts. If you receive a distribution of $10 or more, expect this form in the mail.  Distributions from retirement plans, IRAs, Annuities, and Pensions are eligible for 1099-R reporting. (Source: Credit Karma)

1099-SA: Health savings account distributions, arrives in Jan through Mid-Feb

Many employers offer Health Savings Accounts (HSA) or a similar product (e.g. Archer medical savings account (Archer MSA), or Medicare Advantage medical savings account (MA MSA)). A 1099-SA is a form that reports distributions made from a health savings account (HSA) and shows you how much money you spent from your account. For example, if you had an injury last year, and you used money from your HSA to pay for your medical bills, that would have to be reported on your tax return. (Source: Bamboo HR) 

                                   

SSA-1099: Social Security income, arrives in Jan

An SSA-1099 is a tax form mailed each year to people who receive Social Security benefits. It shows the total amount of benefits you received from the IRS. Social security benefits include monthly retirement and disability benefits. You should know that this doesn't supplemental security income (SSI) payments; SSI payments are not taxable and don't need to be reported on your tax return. (Source: Social Security Administration, TaxAct)

W-2: Wage and tax statement, arrives in Jan

Last but most definitely not least - the mack daddy of all tax forms (drum roll) - W2!! Form W-2 is a document that reports your annual wages and the amount of taxes withheld from your paycheck and is sent to the federal government and state (if applicable). It also shows other information such as how much your employer paid for your health insurance and possibly retirement plan. (Source: Forbes) 

Takeaway  

If all this information made your head swim - don't let the stress of tax forms get to you. Let BYB Tax prepare your return and ensure that you receive the maximum refund possible. In addition, we offer a variety of convenient options for you, including paying your tax prep fee from your anticipated return, as well as tax planning for the next tax season. We also offer a secure portal for you to upload your documents and an outsource-free communication experience with your personal tax preparer. 

Contact BYBTax.com today to schedule an appointment or to learn more about our services!

Written by K. Miller, PSM I

Photo Credit: Nataliya Vaitkevich, Ron Lach, Marcus Aurelius    

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