After a delayed start due to the fiscal cliff, tax season is now in full swing. In about one month, all of the taxes scheduled to be paid by American citizens are due. It is not quite panic time yet, but now would be a good time to get your paperwork together, find your most comfortable desk chair and get to work. Depending on what 2012 held for you and your family, there may be a variety of forms you need to fill out.
Of all of the tax forms we fill out on a yearly basis, the 1040 is perhaps the most important. That’s because this is the form where we report all of our personal income. You cannot file your taxes without filling out the 1040 that applies to your situation.
Perhaps the second most common tax form that many of us receive is a W-2 form from our employer. These forms will list taxable wages that you earned from 2012. If you go to file your taxes and discover you have not received your W-2, don’t panic! First, contact your employer and make sure that they mailed it. If they have mailed it and you have yet to receive it, contact the IRS.
The 1098 is another important form for tax payers to be aware of. There are many different types of this form, but all are equally important as they will list your tax deductions. Deductions can stem from many things in your life. For example, if you own your home, the interest on your mortgage can be deducted as well as any student loans that you may have.
1099-Misc is probably the most common form to emerge from the 1099 series. This form is to be used by workers whose employers do not pull taxes out from their pay during the year. Many people fall under this category, including actors and freelance writers.
1099-div is another important form that is part of the 1099 series. This form is specifically for men and women who deal in stocks or mutual funds. If your investments from 2012 paid out dividends or made capital gains, expect to receive this form if you haven’t already.
Tax season can mean wading our way through a mountain of paperwork with the hope of receiving a refund back for all of your hard work. Keep yourself organized; determine what forms you need to file and how you are going to do so. Double check those deductions and make sure you get everything done by Monday, April 15th!
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Jake Alexander is an avid blogger who enjoys writing about business and finance. Follow him @JakeAlexander17.