Right here yow will discover out which tax types you want in your tax return
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If you’re banking on a refund this tax season, the IRS has a warning: You should file a complete and accurate tax return to avoid delays.
Although it’s been a smoother submission season compared to previous years, it’s still important to submit correctly the first time, experts say. One way to avoid potential problems is to get organized with required tax forms, known as information returns, which are sent to the IRS and taxpayers annually.
“Missing tax documents will definitely result in a refund delay,” said Sheneya Wilson, a chartered accountant and founder of Fola Financial in New York.
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Here’s why: If you skip the tax forms you receive from the agency, the IRS systems can flag your tax return and send you a notification, she explained.
Whether you work with an accountant or file your tax returns on your own, here’s what you need to know about your tax forms—and when to expect them.
When to receive each tax form
While most tax forms have a Jan. 31 deadline, others aren’t due until mid-February or later, said certified financial planner John Loyd, owner of The Wealth Planner in Fort Worth, Texas.
For example, the deadline for 1099-B for capital gains and losses and 1099-DIV for dividends and distributions is February 15. However, some investment firms are getting a deadline extension from the IRS to give them more time to validate forms and avoid corrections, meaning they can’t get those forms until March, Loyd said.
If you need a corrected form, it can slow down your filing process because the investment firm needs time to update and reissue your documents, he said.
Regardless of your situation, it’s important to have all the necessary forms on hand before filing your tax returns, Loyd said. “It’s 1,000 times better” to file correctly the first time, he added, noting that IRS filings can take months to process.
Make a checklist of last year’s returns
If you’re not sure what tax forms to expect, experts say last year’s tax return is a good place to start.
“I go page by page with the previous year and the current year [returns]said Marianela Collado, CFP and CEO of Tobias Financial Advisors in Plantation, Fla. She is also a CPA. “It’s always a good check,” she said.
Some of the common forms for income include a W-2 for wages, 1099-NEC for contract or gig economy work, 1099-G for unemployment benefits, and 1099-R for retirement plan distributions.
For 2022, you probably won’t get a 1099-K for payment apps like Vemno or PayPal unless there were more than 200 payments totaling over $20,000. If you receive this form by mistake, the IRS says they are working on a guide.
Of course, it’s also important to make sure the numbers on your tax return match those on your 1099s, because “that’s something that could trigger a delay,” Collado said.
As for tax relief, you may need Forms 1098 for Mortgage Interest, 5498 for Individual Retirement Account Deposits, 5498-SA for Health Savings Account Contributions, 1098-T for Tuition, 1098-E for Student Loan Interest, and more.