What Tax Documents Do You Need to File

It's probably a good idea not to throw away everything that doesn't look important once it hits your mailbox this month. With so many tax statements or documents arriving at your doorstep, it makes for good practice to open and understand what they are and why you need to file them. On-top of knowing what needs to be file, the IRS is still delaying the process of certain tax returns that include such credits for taxpayers (i.e. Form 8863 that allows you to claim credits for higher education won't be able to file until the middle of February). Below you will find some common tax statements that will need to be file along with your taxes. 

Form W-2: 

For employers with more than 250 employees, you will notice a change in your W-2 this year. The Patient Protection and Affordable Care Act now require employers to include health care coverage costs on the W-2 forms. The amount in Box 12, code DD, is the sum of what you and your employer pay for your health insurance coverage. Each employer you've worked for throughout the year is legally required to send you a W-2 that shows how much money you made, how much income tax was withheld, Social Security and Medicare taxes paid, and any benefit contributions (retirement plans, medical accounts and child care reimbursement plans).

Form 1099-K: 

Did you receive payments via credit or debit cards or from third-party payment processors, such as PayPal, Amazon, Square and eBay? If so, you might receive a 1099-K reporting those amounts. The new statement is an attempt to get more information on such payments to the Internal Revenue Service.  You will only receive a 1099-K for $20,000+ processed or transactions of 200 or more, so not everyone will receive the 1099-K. This income, however, is taxable and should be reported even without issuance of a 1099-K.

Form 1099-INT: 

You will receive a 1099-INT if you earned more than $10 in interest from your bank account or a CD. The amount reported on this form is fully taxable even if you reinvested the interest back into an investment.

Form 1099-G:

Did you receive a refund from the state or locality last year? If so, you'll receive a 1099-G form. You won't need to report this as income on your tax return if you don't itemize deductions but if used those taxes as a deduction on your previous year's federal income tax return, you'll need to report the 1099-G amount on this year's return.

Form 1099-MISC: 

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