📘 Form SSA-1099 – Social Security Benefit Statement:- 🔹 Purpose The SSA-1099 is a tax form issued by the Social Security Administration (SSA). It shows the total Social Security benefits you received in a given tax year. 🔹 Who Gets It? Everyone who received Social Security benefits (retirement, disability, survivor, or other benefits) during the…
📘 Form 1099-B – Proceeds from Broker and Barter Exchange Transactions:- 🔹 What It Is IRS form issued by brokers or barter exchanges to report sales and exchanges of capital assets. It helps you calculate capital gains or losses for your tax return. 🔹 When You Receive Form 1099-B 1. Sale of Stocks, Bonds, or Mutual…
📘 Form 1099-R – Distributions from Pensions, Annuities, Retirement, or Insurance Contracts:- Form 1099-R is issued when you receive a distribution of $10 or more from retirement-related accounts or contracts. It reports both taxable and non-taxable portions of the distribution. 🔹 When You Receive Form 1099-R 1. Pension or Annuity Payments – Regular retirement income. 2. 401(k),…
📘 Form 1099-G – Certain Government Payments (Unemployment Benefits):- Form 1099-G is issued by federal, state, or local governments to taxpayers who received certain types of government payments during the year. It helps ensure that individuals report these amounts as income when filing their Form 1040 (U.S. Individual Income Tax Return). 🔹 Common Situations Where…
📄 Form 1099-MISC vs. Form 1099-NEC :- Both forms are used to report non-wage payments, but they serve different purposes after the IRS split reporting in 2020. 🔍 Form 1099-MISC – Miscellaneous Information 🔍 Form 1099-NEC – Nonemployee Compensation 📊 Form 1099-MISC vs. Form 1099-NEC – Key Differences 🔹 Purpose *1099-MISC → Reports miscellaneous payments…
📄 Form 1099-DIV – Dividends and Distributions:- Form 1099-DIV is an IRS tax form used to report dividends and certain distributions paid to taxpayers by banks, corporations, mutual funds, and other financial institutions. If you earned $10 or more in dividends during the year, the payer must issue this form. 🔍 Key Points:- 1️⃣ Who…
📄 Form 1099-INT – Interest Income Form 1099-INT is an IRS tax form used to report interest income you earned during the year. Banks, credit unions, brokerage firms, and other financial institutions issue it if they paid you $10 or more in interest. 🔍 Key Points 1️⃣ Who issues it? • Financial institutions (banks, brokerages,…
📄 Form W-2 – Wage and Tax Statement (Summary of Wages/paycheck) Form W-2 is an IRS tax form that employers must provide to employees each year. It reports the employee’s annual wages and the taxes withheld from their paycheck . 🔍 Key Points 1️⃣ Who issues it? • Employers send it to both the employee…
📘 Accounting Methods When Filing Form 1040 (U.S. Individual Tax Return) When reporting income and expenses, the IRS allows individuals to use one of the following accounting methods: 1️⃣ Cash Method (Most Common) ✅ Income is reported when received ✅ Expenses are deducted when paid 🧾 Simple and ideal for employees, freelancers & small businesses…
📅 Due Dates for Filing IRS Form 1040 Individual Tax Returns:- 1. Form 1040 – U.S. Individual Income Tax Return 🗓️ Due Date: April 15 📌 Used by most U.S. taxpayers to report income, deductions, and credits. 2. Form 1040-SR – U.S. Tax Return for Seniors (Age 65+) 🗓️ Due Date: April 15 📌 Similar to Form…
