Pay Attention To Incoming Tax Forms

Filing season has kicked off and a number of organizations have begun sending off tax forms to Americans. Most taxpayers are familiar with W-2 and 1099 forms, but in actuality, there are a broad number of other tax documents that will be arriving in the mail this year, so it's important to keep an eye out for them. By law, organizations must have all tax documents in the mail by January 31, 2011, in order to give consumers time to organize their paperwork. Depending on an individual's personal situation, they can expect to receive a number of documents this year.

The most common form workers will receive is a W-2 form, which will be mailed by their employer. W-2's give income information, such as how much a worker made during the year, Social Security and Medicare taxes paid, income taxes withheld and certain benefit contributions. Self-employed workers who reached the $600 threshold will receive a 1099-MISC form from each customer for whom they provided services.

Individuals able to deduct interest paid on student or mortgage loans will also receive documents from their respective lenders. Mortgage companies are required to send homeowners who paid at least $600 in mortgage interest a 1098 form, which lists the full amount paid and escrow disbursements for real estate taxes and property insurance, Bankrate.com reports. Student loan lenders will provide adults who paid at least $600 in interest with a 1098-E form. In some cases, borrowers may be able to deduct certain fees and capitalized interest.

Adults who received distributions from a retirement account or their pension will receive Form 1099-R, which provides a detailed listing of the account transactions, reports Bankrate. Rollovers and IRA conversions will also warrant a 1099-R document.

Investors who sold stocks, bonds or mutual funds will also require certain forms to complete their taxes. Form 1099-B will be mailed out by the investor's mutual fund company or broker, and detail how many shares were sold, the prices associated with the sale and other account details. For those who received dividend payouts or capitals gains over $10 will receive Form 1099-DIV.

Form 1099-G will be delivered to individuals who received a refund on their state or local taxes the previous year. Taxpayers who deducted these amounts on their taxes last year will be required to list them on their return this year, the news source reports.

Consumers should ensure they have received any and all relevant tax forms before taking their documents to their tax preparer. Taxpayers may also receive other important forms, such as those relating to bank account interest, or be required to report information on other forms relating to education funds, estates and trust or retirement accounts.

By: Liberty Tax Service

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Liberty Tax Service provides a computerized income tax preparation service and electronic tax filing. Each tax office offers customers audit assistance, a money back guarantee, and free tax return checking.