If you’re hoping for a refund this season, it’s important to file a complete and accurate tax return to avoid “extensive processing” and delays. according to irs,
One of the keys to error-free filing is including all of your required tax forms, known as information returns, that employers and financial institutions send annually, with copies going to the IRS and the taxpayer.
If you leave the tax forms received by the agency, the IRS system may flag your return and mail a notice to you, explained Shenaya Wilson, a certified public accountant and founder of Fola Financial in New York.
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“Missing tax documents will certainly delay refunds,” Wilson said.
Whether you’re working with a tax professional or filing yourself, here’s what to know about your tax forms—and when to expect them.
When to Expect Your Tax Forms
Certified financial planner John Loyd, owner of The Wealth Planner in Fort Worth, Texas, said most tax forms have a Jan. 31 deadline, while others aren’t due until mid-February or beyond.
For example, deadline 1099-B for capital gains and losses and 1099-DIV Lloyd’s said February 15 is the date for dividends and distributions. But some investment firms get extensions from the IRS to validate the forms and avoid corrections, which means you may not receive these forms until March.
If you need a corrected form, it can slow down your filing process because it takes time for the investment firm to update and reissue your documents, he said.
Whatever your situation, Lloyd said, it’s important to have all necessary forms ready before filing your return. “It’s 1,000 times better” to file correctly the first time, he said, noting that IRS notices can take months to resolve.
Review last year’s returns ‘page-by-page’
If you’re not sure which tax forms to expect, experts say last year’s tax return is a great starting point.
“I go page by page with the former year and the present year [returns],” said Marianella Collado, a CFP and CEO of Tobias Financial Advisors in Plantation, Florida. She is also a CPA. “It’s always a good check,” she said.
For income, some common forms include a W-2 for wages, 1099-NEC For contract or gig economy work, 1099-G for unemployment income and 1099-r For retirement plan distribution.
For 2022, You probably won’t receive a 1099-K for payment apps like Waymano or paypal unless there are more than 200 payments with an aggregate value of more than $20,000. If you receive this form by mistake, IRS saidIt is working on guidance.
Of course, it’s also important to make sure the number on your tax return matches the number on your 1099 because “that’s something that could trigger a delay,” Collado said.
Forms you may need as far as tax exemption is concerned 1098 for mortgage interest, 5498 For individual retirement account deposits, 5498-SA For health savings account contributions, 1098-T for tuition, 1098 AD For student loan interest and more.