5 Tax Forms to Look Out for in Early 2023

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Keep an eye out for these so you can file an accurate tax return. 

Now that the 2023 tax-filing season is underway, you may be eager to get your taxes done on the early side. Doing so could mean seeing your refund hit your bank account sooner (assuming you’re owed money from the IRS).

But to file your tax return, you’ll need certain forms in hand. And here are a few important ones to look out for early on this year.

1. Form W-2

If you’re a salaried employee, this is the form you’ll get summarizing your wages for the year. You’ll need this information to know how much work-related income to report on your taxes.

2. Form 1099-MISC

If you worked on a freelance or self-employed basis and were paid $600 or more from a given company or entity, it’s required to issue you this type of 1099. Do note that the IRS receives copies of any 1099 that’s issued to you, so if you’re thinking of not reporting a small amount of income, well, don’t, as that could get you into trouble.

You should also know that if you earned less than $600 from a given company or entity and therefore aren’t getting a 1099, you’re still required to report that income to the IRS and pay taxes on it. The IRS may or may not find out about that income in the absence of a 1099. But for such a small amount of income and associated tax bill, it’s really not worth taking the chance.

3. Form 1099-INT

If you earned interest from a savings account or certificate of deposit, this form will summarize the amount of interest income you earned. Interest income is taxed as ordinary income, and the IRS is entitled to a piece of it.

4. Form 1099-DIV

If you hold dividend-paying stocks in a brokerage account, this form will summarize the amount of money you received in dividends. The good news is that most dividends are considered qualified dividends, which are taxed at a lower rate than interest and ordinary income.

5. Form 1098

If you have a mortgage loan, this form will summarize the amount of interest you paid on it the previous year. That’s an important figure to have, because if you’re itemizing on your tax return, as opposed to claiming the standard deduction, you can deduct your mortgage interest and reap some savings. And if you’re in the early stages of paying off your mortgage, more of your monthly payments are likely going toward interest, so the associated tax break could be substantial.

Be on the lookout

The deadline for companies to send out W-2s is Jan. 31, and that’s the deadline that generally applies to 1099 forms as well. So if, come February, you’re missing forms you expected to receive, reach out to the entities in question and find out what’s going on.

Keep in mind that a lot of banks and financial institutions no longer mail out 1099 forms. Instead, they make them available for download when you log into your account. So don’t assume a form of yours isn’t available just because it hasn’t arrived in the mail.

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