Wednesday, January 21, 2009

Tax Time

Shameless C&P from Money Smart Life. I figure if I don't grab it now, I'll forget about it later and considering the fact that we're doing our taxes this weekend...well consider this post synonymous with a red string around my finger. Here are some of the common tax forms that you might need to prepare your tax return this year.

W-2 Tax Form This is likely the most important document that you need to file your taxes. If you are employed by someone else, they should send you this form before January 31st, 2009. It contains information such as your wages, salary, tips, commissions, federal tax withholdings, social security taxes, medicare taxes, retirement account contributions, and various other information. 1099-S Tax Form If you did any work as an independent contractor, the employer would send you this form reporting your wages/salary. There should not have been any taxes withheld, because you are considered self-employed, and it’s your responsibility to do that on your own. The reason for this is because you were not an employee of that company or individual, so they should not have withheld any taxes from you. 1099-SSA Tax Form You will receive this form from the federal government in order to claim social security income if you received any SSA income at any time during 2008. 1099-DIV & 1099-INT Tax Form You will receive these forms from any financial institution where you hold a fund or account that paid taxable dividends or if you had taxable capital gains or losses. 1099-R Tax Form This is a form that reports distributions from annuities, profit-sharing plans, retirement plans, IRAs, and pensions. Whoever holds the plan, (the custodian of the plan) sends the form to the owner of a plan if he or she has made distributions of $10 or more from the plan in a given year. The form is mailed to recipients by January 31 of the year after the distribution was made. In some cases, the individual needs to attach a copy of Form 1099-R to his or her tax return. 1098 Tax Form If you own a home, your mortgage company will send you this, and it shows you the total amount of interest you paid on your mortgage for the year. Only those who itemize their taxes need to use this form to report the interest paid as deduction. 1098-E Tax Form If you paid student loans throughout 2008, the institution that holds the debt will send you this form. It shows how much you paid in student loan interest. You will only use this information if you are itemizing your deductions. 1098-T Tax Form If you or your spouse took any higher education classes at an accredited college or university either for a degree or not for a degree, you will receive this form from that institution. This information will show the amount of money you paid in tuition for 2008, and you can use it to claim the Hope or Lifetime learning credit. 1042-S Tax Form This form will be sent from your former or current university/college if you received any grants, scholarships, or fellowship money that qualifies to be taxed.

And since I'm shamelessly C&P'ing stuff today. I read this list of the 20 Things Learned While Getting Out of Debt earlier today and I only wish we would have read this years ago. Oh well, 1 car payment and 1 student loan away from financial freedom. (The mortgage isn't even on our radar...)

Related Posts with Thumbnails

Back to TOP  

Pin It button on image hover