What's a Form 1099?Comment February 9, 2013 by Becky
The quick answer to the question, “What’s a Form 1099,” is this: Like a W-2, a Form 1099 is used by taxpayers to report their financial data and other various types of income to the IRS. But the phrase “other various types” is actually pretty long.
Specific to your savings accounts and the like, any credit union member, bank customer or investor will receive a specific form called a “1099-INT” to report dividends or interest earned within their accounts, provided the amount is at least $10.00. Joint account holders will find that the primary account holder is listed on their Form 1099-INT, and will not include the secondary account holder’s information because the tax data is based on the social security number of the primary holder only. Triangle online members will find their Form 1099-INT in the same area that they view their eStatements. In-branch members will receive their form in the mail. Expect to see your form before February 1st, the deadline for delivery denoted by the IRS.
Your tax form (1040) will have a special area to fill in all of your earned interest found on the 1099-INT. Plus, if you paid early withdrawal fees on CDs or IRAs, those penalties will be included within your 1099-INT. Remember that penalties paid are deductible and will also have their very own line on your 1040 tax form.
If you are eligible for the Earned Income Tax Credit (EITC) and need help filing, VITA (Volunteer Income Tax Assistance) programs can be found in thousands of cities across the country. VITA offers free tax help to anyone making $51,000 or less and can provide information about special tax credits. Locations for free EITC tax preparation can be found at various community locations including neighborhood centers, libraries, schools, malls from the new year to the tax deadline and right here at Triangle Credit Union every Saturday morning in February and March. If you plan to attend a EITC prep session, be sure to bring the following items:
- Photo ID Social Security Cards (yours, your spouse’s and dependents’)
- Individual Tax Payer Identification Number (ITIN) assignment letter for you, your spouse and dependents
- Proof of foreign status if applying for an (ITIN) Birth dates for you, your spouse and dependents on your tax return
- Wage, earnings, interest and dividend statements including 1099-INT, W-2 and any other forms from banks and employers
- A copy of last year’s federal returns if available Proof of bank account routing numbers and account numbers for direct deposit (such as a blank check)
- Total paid to daycare provider and the daycare provider’s tax ID if appropriate
- To file taxes electronically on a married-filing-joint return, both spouses must be present to sign the required forms
Plan to ask an accountant or tax specialist about all of the Form 1099’s that may apply to you. If you plan to file this year using TurboTax® within your online banking account, CPAs, EAs and tax attorneys are readily available year-round to answer your form and tax inquiries.
Becky - eCommerce Manager