Understanding Information Returns for 2024: A Quick Guide
As we approach the 2024 tax season, it’s important to be aware of the key Information Return forms that help ensure proper tax reporting. Here’s a breakdown of the most common forms:
📄 1. Form 1099
• Purpose: Form 1099 is used to report a variety of income types that aren’t captured on a W-2. This includes earnings from freelance or contract work, rental income, interest, dividends, and certain government payments.
• Types of 1099 Forms:
• 1099-NEC: Used for reporting non-employee compensation, such as payments made to independent contractors or freelancers.
• 1099-MISC: Used for other types of income such as rent payments, prizes, awards, and legal settlements.
• 1099-DIV: Reports dividend income earned from stocks, mutual funds, or other investments.
• 1099-INT: Used to report interest income, including interest from savings accounts, bonds, and other investments.
• Who Files: Businesses, financial institutions, and other payers issue these forms to report payments made to contractors, vendors, and other non-employees.
• Deadline: January 31 to recipients; February 28 (March 31 if filed electronically) for IRS submission.
📄 2. Form W-2
• Purpose: Reports wages, salaries, and taxes withheld for employees.
• Who Files: Employers.
• Deadline: January 31 to employees; February 28 for IRS filing.
📄 3. Form 1098
• Purpose: Reports payments such as mortgage interest, student loan interest, and tuition payments.
• Who Files: Lenders and educational institutions.
• Deadline: January 31 to recipients; February 28 for IRS filing.
📄 4. Form 1095
• Purpose: Reports health insurance coverage under the Affordable Care Act (ACA).
• Who Files: Employers, insurers, or other health coverage providers.
• Deadline: January 31 to recipients; February 28 for IRS filing.
📅 Key Deadlines for 2024:
• January 31: Deadline to issue most 1099, W-2, and 1098 forms.
• February 28: Paper filing deadline for IRS.
• March 31: Deadline for electronic filing with IRS.
Make sure your information returns are filed on time to avoid penalties. Staying informed about these forms will help you ensure smooth tax reporting this season!
