March 31, 2022
Deadlines are important for IRS tax Forms, which is the date by which something has to be done. It is generally the date by which the tax return or the document reporting the taxes reaches the IRS. The important IRS Forms are the 1098 and the 1099 Forms. It is mandatory to file them before the deadline to prevent penalties, which could be a huge tax burden. IRS Tax Form 1099 and 1098 Forms IRS tax Form...
March 30, 2022
The IRS Tax Form 1098 is for reporting Mortgage interest statements. It helps taxpayers report their interest and related expenses paid on a mortgage during the tax year. If the mortgage amount exceeds $600 or more, taxpayers use this form to report their interest amounts.\ The purpose of Form 1098 Moneylenders use Form 1098 to report their excess interest payments. If they receive more than $600 as interest payments for the tax year they use this form...
March 29, 2022
Colleges in the United States send Form 1098-T or tuition statements to their students. This tax Form is mandatory to file the taxes, and it increases the tax refund. It qualifies the students for education-relevant tax benefits, lifetime learning credit, deduction on tuition fees, etc. What is Form 1098-T? This tax Form gives the amount, the taxpayer paid for qualified educational expenses during the tax year. Eligible institutions like colleges, vocational schools, and universities send this Form...
March 28, 2022
Form 1099 belongs to the Internal Revenue Service of the United States and is used by its citizens and businesses to disclose information about their income and their business. There are many types of these Forms and Form 1099s are used to disclose information about the salaries, wages, tips, interests, and dividends earned by the taxpayer. Payments to independent contractors, Income from rental property, and dividends and interests, are also reported here. When it comes to the...
March 25, 2022
IRS tax Form 1098 helps taxpayers to report their Mortgage interest statements. They use it to report their mortgage interests of $600 or more that they receive in the course of their trade or business in the tax year. Taxpayers have to file separate Forms for each of the mortgages. The $600 threshold was applied for each of the mortgages separately. They can use it to report mortgage insurance premiums of $600 or more received during the...
March 24, 2022
The IRS Tax Form 1098 pertains to the mortgage interest statement of the Internal Revenue Service. Taxpayers use this form to report their interest amount and the related expenses paid during mortgage during the tax year. The mortgage interest should be greater than $600 to receive this IRS tax Form. Purpose of IRS Form 1098- MORT Lenders will use this IRS tax Form to report the interest payments they receive during the year. The interest payments should...
March 23, 2022
Before filing the return, it is important to gather all the required information. Organizing all the documents required for filing the taxes will help reduce stress while doing the taxes. Having all this information handy is mandatory if one is filing tax by self, or with the help of tax filing software. A roundup of all important information for filing taxes Before starting to work on the tax return, review the below-given tax preparation checklist. If filing...
March 21, 2022
Failing to file IRS tax Forms by the due date will attract penalties that could be an additional financial burden for the taxpayers. The penalty for not filing the tax returns is 5% of the unpaid taxes for each month. Tax filers have to pay penalties even for part of the month when the tax return is late. The penalty for not paying taxes could go up to 25% if the taxpayer has not filed them for...
March 13, 2022
Form 1099-MISC is an IRS tax Form that is used by US citizens to report their miscellaneous income that includes prices and awards, healthcare spending, rents, payments to an attorney, etc. Before the year 2020, this Form was used to report non-employee compensation to freelancers and independent contractors as well, but now these are being reported in a separate tax Form 1099- NEC. Who should file Form 1099- MISC? Form 1099-MISC should be completed and sent by...
March 11, 2022
The IRS Form 1120-S is used by an S-corporation to report their gains, income, losses, credits, and deductions. This form should be filed by any entity or corporation that is been elected to be an S corporation. The firm should have filed Form 2553 for election and the IRS should have accepted the election to qualify as an S corporation. The Form serves as an annual income tax return statement of the corporation, as long as it...
