Common Tax Forms You Need to Know

As a Lockheed Martin employee or retiree, you have many years of experience in filing your taxes but there are just as many new Lockheed Martin employees who may start filing their taxes on their own for the first time.  Even if you are not new to filing taxes, sometimes the plethora of tax forms can be confusing or overwhelming.  This blog may help in that we will identify the most common tax forms that all investors should know.

First, it’s important to know that upon the completion of each calendar year, banks, brokers and other institutions generate tax forms that report relevant events and transactions that occurred the prior year in your accounts to the IRS. They do this by using many forms that are commonly known as 1099 tax forms. There are numerous variations of 1099 forms depending on the type of event that took place as well as the associated account type. The institutions submit one copy of each form to the IRS and another copy to you, the account holder.

Here are some of the most common 1099 forms that investors often receive:

1099-B Capital gains or losses from trades of publicly traded securities (stocks & ETFs) The “B” stands for broker or barter exchange. This form includes details such as short-term vs. long-term gains or losses, transaction information, cost basis, date of sale, ticker symbol, quantity sold, gross proceeds, and federal tax withheld.
1099-DIV Dividend payments and other distributions This form reports mutual funds. If you held any foreign securities domiciled outside the United States, any foreign taxes you paid are reported on this form. It also reports ordinary dividends separately from qualified dividends and specifies if you had any state or federal taxes withheld from your distributions.
1099-INT Interest income Banks, savings institutions, and brokerage firms typically generate these forms when you receive interest payments in your accounts. Common account types that receive interest income include checking, savings, money market, CDs, U.S. savings bonds, and investment accounts holding interest-bearing securities.
1099-MISC Miscellaneous income This form is used to report various types of non-employee compensation. Examples include money earned as an independent contractor, royalty income, prize monies, awards, and rental property income.
1099-OID Original issue discount If you purchased a bond or note for an amount less than face value last year, you could receive this form. It reports when the redemption price or face value of your investment was higher than its issue price. Examples include income from zero-coupon bonds, T-bills, or peer-to-peer lending.
1099-R Distributions from qualified plans This form reports distributions from retirement plans, profit-sharing plans, annuities, pensions, insurance contracts, and disability payments. You should receive a separate 1099-R for each account and distribution code. If you rolled over an employer-sponsored plan into an IRA, you should also expect to receive Form 5498, which should balance out the distribution reported on your 1099-R.
1099-Consolidated One account with multiple events in one year A 1099 Consolidated takes multiple 1099 forms and compiles them all together into one file. For example, a consolidated 1099 statement could include 1099-DIV, 1099-INT, 1099-B, and 1099-OID combined in one form. 

The forms above typically need to be postmarked and filed with the IRS between January 31 and February 15. If you didn’t receive your 1099, many tax software programs allow you to download your information directly from your investment website. If yours does not, don’t worry. You can call your institution and they can send you a copy. Note that only the 1099-R is required to be filed with your return if you had federal tax withheld from your distribution.  

Knowing details and providing education like this is what we do! We help clients every day make wise decisions about their finances, and we can help you too.  We have Lockheed Martin specialists who are well-educated in your benefits and in the science of financial planning.  Click here or call 817-210-3444 to schedule a complimentary consultation today. 

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This blog is being provided and sponsored by Strittmatter Wealth Management Group, LLC. Lockheed Martin and its subsidiaries do not endorse, recommend, or make representations with respect to any information, advice, services, or products discussed in this blog. 

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