Tax tips for the April 15 filing deadline
Tax Day is just around the corner and FOX 13’s Craig Patrick shares the latest information ahead of the April 15 deadline.
Fox – 13 News
When your tax filing deadline approaches and you’re in a mad dash to gather all the necessary documents, it’s easy to get overwhelmed by the numbers and letters like W-2, W-9, and 1099.
Some forms are pre-filled and designed to be submitted to the IRS. These may arrive in your mailbox or may be sitting in your website’s “Tax Documents” portal, waiting to be downloaded. In theory, you might not need to do anything other than file it with your tax representative if you have one, or document the appropriate amount on your tax return. Other forms require some action on the user’s part.
Here’s an overview.
What is the W-9 used for?
W-9s are typically used by businesses to collect personal identifying information such as social security numbers and tax identification numbers.
A common reason to fill out a W-9 is that you are an independent contractor, freelancer, or gig worker and your income may exceed $600. You may also be asked to fill out a W-9 when opening an interest-bearing bank account or another financial account that provides extra income.
This form will not be sent to the Internal Revenue Service. However, the information you provide on your W-9 will be used to prepare and fill out other forms. Read more.
Is a W-9 the same as a 1099?
The main difference between a W-9 and a 1099 is that you fill out the W-9, whereas the 1099 is filled out by the company or entity making the payment. In most cases, you should receive your 1099 form by the end of January.
The 1099 form is used to report income that is not earned directly through an employer. There are several types of 1099 forms because there are many ways to make money outside of traditional jobs.
Common 1099s displayed: 1099-G, 1099-K, 1099-R, 1099-Div
Some of the most common 1099s you may receive are:
- 1099-G: Details any state or local tax refunds that are considered income.
- 1099-K: Summarize your earnings if you earn at least $20,000 and complete at least 200 transactions on third-party payment networks such as Etsy, Airbnb, and Venmo.
- 1099-R: Report distributions of $10 or more from various types of retirement plans, pensions, annuities, insurance contracts, and similar accounts.
- 1099-Division: Used by banks and other financial institutions to report dividends and other distributions to taxpayers and the IRS.
What is a W-4? What is it for?
The W-4 is a form you must complete when you work directly for an employer.
It tells your employer how much federal income tax to withhold from your paycheck, based on factors such as whether you’re married and filing a joint return, whether you have dependents to claim, and whether you work multiple jobs.
You will usually be asked to fill it out when you start your job. However, if you notice that the amount withheld from your paycheck is significantly different from the amount of taxes you ultimately owe at the end of the year, you may want to double-check your forms.
You should also revisit this if your marital status changes, if you have or adopt a child, or if your employment status changes.
The IRS has a withholding estimator that can help you determine whether a W-4 adjustment is appropriate.
What can I learn from my W-2 form?
A W-2 is a form that employers are required to send by the end of January to document how much you earned working for your employer in the previous year and how much tax was withheld from your paycheck. This form also shows how much you earned from tips and the benefits you received during the year.
If you had more than one job last year, expect to receive a separate W-2 from each employer.
You must include each W-2 form on your tax return. Forms are especially important because they provide proof of how much you earned.
What is a 1040 tax return?
The 1040 is a comprehensive form used to fill out an individual’s income tax return. The two-page document records the different types of income you earned last year, indicates whether you take the standard deduction or itemized deductions, and reports any tax credits you qualify for.
Follow the instructions on the form and crunch the numbers to find out how much tax you owe or how much of a refund you need.
Who fills out Form 5695?
Form 5695 is used to declare eligible residential energy credits. For example, if you installed roof tiles that generate solar energy in 2023, you can use the form to claim a residential clean energy credit.
Importantly, this form does not apply to businesses.
