Guess what? It’s tax season! By now, every American should have access to their W2’s, W3’s, 1099’s, and other statements of earned income. Also, the government released statement letters verifying their payments including the child tax credits and other economic impact payments (EIP). Most documents like mortgage statements, student loan statements, dividends, etc. should be in all households by now.
This year, 2022, tax day is April 18th. Individuals can file for an extension until October 15th. However, businesses are more likely to file for extensions, as they have more to keep track of throughout the year. As always, whether individual filer or business filer, we can help take care of your needs.
Income Statements:
If you’ve worked for a business, you should have received your W2. By the end of January, all businesses should have sent out all employee W2s. If you have worked as an independent contractor, you’ll need your 1099 or 1099-MISC. A business needed to have the 1099’s to independent contractors by February 1st. If for some reason, you do not have your 1099, hopefully, you have kept track of the money you earned. If you’re a business owner, then you’ll need your W3 statement for filing. This income statement is specifically for small businesses and covers the W2 side for the business’s employees, as well as it showing the taxes and withholdings. W3’s keep all the payroll information in one place, which is necessary for filing.
You may have received government compensation through unemployment then you’ll have received a 1099-G statement. If you made a small amount on a previous year’s state tax, you might have received the funds back and will be receiving a 1099-G from the state you live in. These may not seem like taxable income, however, you must include these forms when you file. There are other various income forms, but these are the most common forms. We’ll discuss some of the more uncommon forms next.
Tax jargon is often viewed as confusing and hard; however, it doesn’t have to be. You shouldn’t feel a sense of dread as we move into tax season, in fact, you should be able to read some of our helpful articles or reach out to us, to feel at ease. Let’s continue our chat about tax forms and other important documents you’ll need.
If you’ve financed a home this past year, you’ll be receiving a 1098 from your mortgage company. If you sold and purchased another home, both with financing, you’ll be getting multiple 1098 forms. The 1098 form reports on $600 or more of interest from the mortgage company. You’ll need to keep track of these for tax filing.
Since healthcare has been a huge topic for the world…let’s chat about form 1095-A. If you used the Health Insurance Marketplace for your healthcare, they will be sending a 1095-A form to show the health premiums paid and premium credits used. There will also be a spot for the Second Lowest Cost Silver Plan (SLCSP). The IRS isn’t sending this out, so you may need to double-check the information on the Marketplace website.
Also, if you have paid for medical expenses with your own money, not with your insurance or health savings accounts, then you can get these statements to see about qualifying for a different deduction than a standard deduction for your taxes. You can contact the pharmacy you’ve used for payment statements, as well as the hospital or any doctors you may have gone to throughout the year. All these offices can provide the out-of-pocket expenses you may have paid.
This is all good to keep track of throughout the year to see about the opportunity to change your deductions and how you might file. Use this as a tentative guide. Reach out and let’s get you taken care of.