All Income Must Be Reported

Man on computer-All Income Must Be Reported

Filing taxes? Then you must include all income in your tax preparation.

Here is a partial list of the types of income you need to report:

  • Government issued photo IDs (e.g., your driver’s license) or ITIN
  • Social Security card(s) (if you are a new client)
  • Prior year’s tax return (if you are a new client)
  • W-2 – if you are employed
  • Foreign earned income
  • 1099-G – received government payments
  • 1099-NEC – if you are self-employed
  •  1099-R – is used to report the distribution of retirement benefits such as pensions and annuities.
  •  1099- Misc – rents, gambling earnings, prizes, and awards
  • 1099 D – dividends
  • 1099-INT – interest received from any investment
  • 1099-B -Investment income from the sale of stock, interest, dividends, etc
  • 1099-G- unemployment -The IRS considers unemployment benefits taxable income
  • 1099-SSA – Social Security benefits
  • 1099-C by your creditor.
  • 1099-K – if a merchant account paid $600 or more to you in the previous calendar year
  • 1099-S- Sale of real estate. Provide your tax pro with relevant information such as settle event statements and documentation of improvements.
  • IRS Notices 1444-C or IRS Letter 6475 – Stimulus payments and child tax credits. Create an IRS account where you can find missing information.
  • Investment accounts statements
  • Crypto transaction reports
  • Student reporting information – The 1098-E, the student loan interest statement. 1098-T reports expenses you paid for college tuition that might entitle you to a tax credit.
  • Alimony – alimony or separate maintenance payments relating to any divorce or separation agreements dated January 1, 2019, or later are not tax-deductible by the person paying the alimony. The person receiving the alimony does not have to report the alimony payments as income. For divorces before 2019, it is includible in income.

Additionally, All Income Must Be Reported:

  • If you earned less than $600 as an independent contractor, the payer does not have to send you a 1099-MISC or 1099-NEC, but you still must report the amount as self-employment income.
  • If you have interest income of at least $10, you’ll usually receive a Form 1099-INT. However, if you don’t receive the form, you must still report your interest income earned.
  • If you have to report dividends received, even if they are less than $10. The stockbroker (or bank) is not required to issue a Form 1099-DIV if dividends are less than $10, but you have to report them.

(Your tax preparer may require additional information.)

Preparing your own taxes may save you some money but think about complexities that you need to understand; Additional Child Tax Credit, Stimulus Payments, Earned Income Tax Credit, and Child and Dependent Care Tax Credit.  At SFS Tax & Accounting Services Enrolled Agent, Jeffrey Schneider, E, CTRS, ACT-E knows the laws and will prepare your tax return correctly the first time. Contact us at 772-337-1040 or book your appointment online,

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