You will soon be bombarded with forms and notices in the mail for your tax return. Don't get flustered over the paperwork. It is all required information being sent to you to assist in your tax return preparation. Let's go over a few of the basic forms for most of you.
First there is the W-2. This is a summary of how much money you made and how much was deducted during 2010. Your employer is required to provide this to you before January 31st. Fortunately, the form hasn't changed from last year, so it should look familiar.
Next is the 1099. There are several variations of this form, depending on why it is being completed. Each is designed to report income that has been paid to you during the year. The most common is the 1099-INT, which reports how much (or how little!) interest you received. Other 1099 forms include the 1099-S for sale of real estate, 1099-B for stock sales and the 1099-DIV for dividend payments.
Form 1098 is used to report how much you paid for certain items, primarily interest and taxes on real estate. The form show how much interest, point or mortgage insurance you paid, as well as impounded taxes and insurance.
All these forms are useful in helping you gather the information needed to prepare your return. As always, if you have any questions, please do not hesitate to call or email us with questions. We are always here to help.
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