If you’re expecting a refund this season, it’s important to file a complete and accurate tax return to avoid “busy processing” and delays. according to IRS.
One of the keys to error-free filing is the inclusion of all of your required tax forms, known as information returns, which employers and financial institutions send annually with copies to the IRS and taxpayer.
If you skip tax forms received from the agency, the IRS systems can flag your tax return and send you a notification, explained Sheneya Wilson, a board-certified public accountant and founder of Fola Financial in New York.
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“Missing tax documents will definitely result in a refund delay,” Wilson said.
Whether you work with an accountant or file your tax returns on your own, here’s what you need to know about your tax forms—and when to expect them.
While most tax forms have a Jan. 31 deadline, others aren’t due until mid-February or later, said certified financial planner John Loyd, owner of The Wealth Planner in Fort Worth, Texas.
For example the deadline for 1099-B for capital gains and losses and 1099-DIV for dividends and distributions is February 15. But some investment firms are getting an extension from the IRS for more time to validate forms and avoid corrections, meaning you may not receive those forms until March, Loyd said.
If you need a corrected form, it can slow down your filing process because the investment firm needs time to update and reissue your documents, he said.
Regardless of your situation, it’s important to have all the necessary forms on hand before filing your tax returns, Loyd said. “It’s 1,000 times better” to file correctly the first time, he added, noting that IRS filings can take months to process.
If you’re not sure what tax forms to expect, experts say last year’s tax return is a good place to start.
“I go page by page with the previous year and the current year [returns]said Marianela Collado, CFP and CEO of Tobias Financial Advisors in Plantation, Fla. She is also a CPA. “It’s always a good check,” she said.
For 2022, you probably won’t get a 1099-K for payment apps like Vemno or PayPal unless there were more than 200 payments totaling over $20,000. If you receive this form in error, the IRS saidit is working on a guide.
Of course, it’s also important to make sure the numbers on your tax return match those on your 1099s, because “that’s something that could trigger a delay,” Collado said.
You may need forms for tax benefits 1098 for mortgage interest, 5498 for individual retirement assets, 5498-SA for health insurance contributions, 1098-T for lessons, 1098-E for student loan interest and more.
https://www.cnbc.com/2023/01/24/tax-forms-you-need-to-file-your-2022-return-and-when-to-expect-them.html Tax forms you need to file your 2022 tax return and when to expect it