Monthly Archives: September 2013

Do you need to file a 1098?

File taxes onlineEvery apartment dweller has heard they are wasting their money paying rent, and that the benefits of home ownership extend far beyond the investment potential.  Owning your own home also has tax benefits and ramifications.  Be well informed about your requirements as a home owner before jumping in with both feet!

A 1098 is a form to report interest paid to a lender throughout the year.  The items listed on this form include interest paid on your mortgage, points paid at the time of the purchase, some mortgage insurance items, and any reimbursements for overpayment you may have received.

This form must be filed for any interest over $600, and it must be filed whether or not interest can be used as a deduction.  If multiple mortgages secure a property, a different form must be filed for each mortgage.  As always, there will penalties for not filing these forms.  All interest paid to a lender via a borrower must be filed by the normal tax deadlines.  The only exceptions to filing the 1098 come when the interest is paid from a corporation, trust, or an estate.

Education is paramount for success in the world today.  Fret not, your tuition payments are not all in vain.  Another common form is the 1098-T.  The 1098-T is used to report tuition paid to a college, university, or vocational school by a student.  The student may then use the 1098-T to report tuition paid for possible deductions and educational tax credits.

Any eligible educational institution must file a 1098-T for each student from whom they receive tuition.  The form need not be filed for non-credit courses, scholarship students, or non-resident students.  This form must also be filed by the standard IRS deadlines or face penalties.

These two forms and more can be e-filed at your convenience by Online File Taxes!  Visit our website for more information about the many other forms we can easily and quickly e-file for you!

Sources:
http://www.irs.gov/pub/irs-pdf/i1098.pdf
http://www.irs.gov/pub/irs-pdf/i1098et.pdf

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Form 1099: What you need to know

File taxes onlineA 1099 form is a tax form about which is little known by the average person. At OnlineFileTaxes.com, e-filing 1099 forms are our specialty. Often, professionals are burdened with having to file many different 1099 forms due to different forms of income over the tax year. With our reporting system, your 1099 forms can be automatically sent to the IRS for your convenience.

The 1099 has quite a few different purposes. The first purpose is that of the independent contractor, which we’ve explored the details of in a previous blog post. Those who are self-employed or freelance are given 1099 forms by employers that pay them over a certain amount of money per tax year.

The 1099-MISC is used to signify income from such business ventures as rental properties, winnings from gambling and other lottery type contests, and other miscellaneous income.

Another type of the 1099 is the 1099-INT which specializes in reporting income earned from interest on interest earning checking accounts, savings bonds that you’ve redeemed, or savings accounts.

The 1099-C is for reporting cancelled debt. For example, if you’ve settled a debt for far less than the amount owed, you must file this form to report your savings to the IRS.

The form 1099-S is used for reporting money that you’ve earned from the sale of real estate.

The 1099-DIV is given to investors whose stocks and or bonds have paid out dividends over the tax year.

Another type of this form is the 1099-B which is used to report income acquired from the sale of stocks, bonds, and mutual funds.

The 1099-R is used for reporting monetary gain by way of IRA distributions, 401K liquidations, or pension payments.

At OnlineFileTaxes.com we specialize in the e-filing of all the variations of 1099 forms. We also specialize in convenient e-filing of many other forms. For more information regarding our services provided, please visit our website.

Resources:
Online File Taxes
About.com

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