Learning About Your Tax Forms
Tax time can be confusing. We put together a list of tax form definitions to help you identify required forms for tax reporting purposes.
W-2: This includes your wages and benefits, and usually comes from your employer(s) or client(s).
1098: Form 1098 reports mortgage interest of $600 or more that you received during the year in the course of your trade or business from an individual, including a sole proprietor.
Special credit union note: This year you may have received two 1098 forms. Some have been printed twice due to new compliance reporting requirements. The amount listed in the "Interest Paid" field did not change between the two separate forms and both are accurate. If you've already submitted your taxes using the first printing, you don't need to make any changes or updates.
1098-E: This form details the student loan interest you've paid in the last year.
1099-INT: This reflects the amount of interest you have earned in 2016.
1099-R: This form covers retirement plan distributions (from IRA or profit-sharing plans).
This form reports paid amounts:
- at least $10 in royalties or broker payments in lieu of dividends or tax-exempt interest;
- at least $600 in:
- services performed by someone who is not your employee;
- prizes and awards;
- other income payments;
- medical and health care payments;
- crop insurance proceeds;
- cash payments for fish (or other aquatic life) you purchase from anyone engaged in the trade or business of catching fish;
- generally, the cash paid from a notional principal contract to an individual, partnership, or estate;
- payments to an attorney; or
- any fishing boat proceeds
In addition, you can use form 1099-MISC to report that you made direct sales of at least $5,000 of consumer products to buyer for resale anywhere other than a permanent retail establishment.
Northwest Community Credit Union does not provide tax advice. If you have any questions, refer to your tax adviser.