Tax forms overview

In this article, we’ll explore the various types of income tax forms and their specific purposes. Each form is designed to address different sources of income that might be relevant to you. You can conveniently upload these forms into the app when you file your taxes with us.

 

1099-NEC, Nonemployee Compensation

This reports nonemployee compensation, which is paid to independent contractors and vendors. Any payments of $600 or more made through ACT, EFT, direct deposit, cash, and checks of $600 will be reported here.

You can expect to receive this form if you worked as a freelancer or contractor and were paid more than $600 by a single company or individual. Examples of this include driving for DoorDash or Uber.

​​Breaking down the boxes:

• Box 1: The total amount a business or person paid you during the year.
• Box 4: Federal income tax withheld — Most of the time this box will be empty, as usually clients don't withhold taxes for contractors, freelancers, or self-employed people. You're responsible for setting aside money for taxes yourself.
• Box 5: State tax withheld
• Box 6: State/Payer's state no.
• Box 7: State income
• Boxes on the left side of the form: These boxes are where the payer's and your (the recipient's) names, addresses, and taxpayer ID numbers go.

 

1099-MISC, Miscellaneous Information

This reports miscellaneous income. Examples of when you'll receive a 1099-MISC are if you've received at least $600 in rent, prizes, or awards.

​​Breaking down the boxes:

• Box 1: Rents — Where income from rental properties is reported.
• Box 2: Royalties — Earned royalties go here.
• Box 3: Other income — Prizes, awards, or other types of income.
• Box 4: Federal income tax withheld — Federal taxes were already taken out are listed here.
• Box 5: Fishing boat proceeds — Income from fishing activities are reported here.
• Box 6: Medical and health care payments — Payments made to you for providing health care or medical services go here.
• Box 7: Payer made direct sales of $5,000 or more — For companies reporting sales of consumer products to a buyer for resale anywhere other than a permanent retail establishment.
• Box 8: Substitute payments in lieu of dividends or interest — Typically for brokerage firms who pay their clients in lieu of dividends or tax-exempt interest.
• Box 9: Crop insurance proceeds — Income received from crop insurance go here.
• Box 10: Gross proceeds paid to an attorney — Relates to legal settlements.
• Box 11: Fish purchased for resale.
• Box 12: Section 409A deferrals.
• Box 14: Excess golden parachute payments.
• Box 15: Nonqualified deferred compensation.
• Box 16: State tax withheld.
• Boxes 17-18: These boxes will show state tax-specific information.

 

1099-K, Payment Card and Third Party Network Transactions

This form reports payments made through credit cards and apps such as Venmo, PayPal, and Shopify. Companies like Uber and Lyft also issue 1099-K’s.

For 2023 and prior years, third-party payment platforms like PayPal are only required to send out Form 1099-K to taxpayers who receive over $20,000 and have over 200 transactions.

For tax year 2024, the IRS plans for a threshold of $5,000 to phase in reporting requirements.

Because of this, you should consider using separate accounts for business and personal to make it easier to track what transactions are for business and what are personal.

Breaking down the boxes:

• Box 1a: Gross payment volume for all payment transactions.
• Box 1b: Card-not-present transactions.
• Box 2: Merchant category code.
• Box 3: Number of payment transactions.
• Box 4: Federal income tax withheld.
• Boxes 5a-5l: Gross payments by month.
• Boxes 6-7: These boxes will show state tax-specific information.
• Box 8: State income tax withheld.
• PSE’s name and telephone number: Who you contact if you notice a mistake on your 1099-K.

 

W-2, Wage and Tax Statement

This reports employee payments, including noncash payments of $600 or more for the year, for services performed (even if the employee is related to the employer). It shows the amounts withheld for income, Social Security, and Medicare tax withheld.

Breaking down the boxes:

• Box a: Your Social Security number.
• Box b: Employer Identification Number (EIN) — Employer's unique tax ID number.
• Box c: Employer's name, address, and ZIP code.
• Box d: Control number — May be empty. If it's not, it's a code that your company uses to identify your W-2 in their records.
• Box e and f: Your name and address.
• Box 1: Wages, tips, other compensation — The total amount of wages, tips, and other compensation.
• Box 2: Federal income tax withheld — How much federal income tax was taken out of your paychecks.
• Box 3: Social Security wages — How much of your pay was subject to Social Security taxes (usually up to a certain limit).
• Box 4: Social Security tax withheld — How much you actually paid in Social Security taxes.
• Box 5: Medicare wages and tips — How much of your pay was subject to Medicare taxes. There's no wage limit for Medicare tax.
• Box 6: Medicare tax withheld — How much you actually paid in Medicare taxes.
• Box 7: Social Security tips — Reported tip income to your employer goes here.
• Box 8: Allocated tips — Tip income that your employer assigned to you (this is not common for most jobs).
• Box 10: Dependent care benefits — Benefits like childcare provided by your employer.
• Box 11: Nonqualified plans — Amounts distributed to you from your employer’s nonqualified deferred compensation plan or nongovernmental section 457 pension plan.
• Box 12: Deferred compensation and other compensation — Various form codes go here.
• Box 13: Checkboxes for statutory employee, retirement plan, and third-party sick pay.
• Box 14: Other — Catch-all box for other things your employer wants to report, like union dues or health insurance premiums.
• Box 15-20: State and local tax information — Covers how much you made and how much tax was withheld for your state and local taxes.

 

1099-INT, Interest Income

This reports more than $10 in interest from a financial institution, like a brokerage, mutual fund, or bank. 

Breaking down the boxes:

• Box 1: Taxable interest not included in box 3 is reported here. Might include interest from a bank account or a certificate of deposit.
• Box 2: Early withdrawal penalty. If you withdraw money from a time-based deposit before it matures, you might have to pay a penalty, which is deductible.
• Box 3: Interest on U.S. Savings Bonds and Treasury obligations, which might be exempt from state or local taxes.
• Box 4: Federal tax withheld at source, also known as backup withholding. If you didn't provide your Social Security number to the payer, or if you're subject to backup withholding, the payer may withhold taxes from your interest income at a flat rate.
• Box 5: Investment expenses (for instances where you own a share of a taxable bond trust and would receive a prorated share of the investment expenses of the trust).
• Box 6: Foreign tax paid.
• Box 7: Foreign country or U.S. territory where tax was paid.
• Box 8: Tax-exempt interest — This might include interest from a municipal bond.
• Box 9: Specified private activity bond interest — These bonds are used by municipalities to attract private investment for projects that have some public benefit.
• Box 10: Market discount on bonds.
• Box 11: Bond premium.
• Box 12: Bond premium on Treasury obligations.
• Box 13: Bond premium on tax-exempt bond.
• Box 14: Tax-exempt and tax credit bond CUSIP number.
• Box 15: State
• Box 16: State identification number.
• Box 17: State tax withheld.

 

1099-DIV, Dividends and Distributions

This reports dividends from investments if you've made more than $10. Heads up: Dividends on your account at a credit union don't count. (They’re technically reported as interest instead.)

Breaking down the boxes:

• Box 1a: Total ordinary dividends — Total of all the ordinary dividends received.
• Box 1b: Qualified dividends — Dividends that meet certain requirements to be taxed at a lower rate.
• Box 2a: Total capital gain distributions — Total amount of capital gains distributions, which come from profits on the sale of securities within the fund.
• Box 2b: Unrecaptured section 1250 gain — A type of gain that relates specifically to depreciable real estate.
• Box 2c: Section 1202 gain — Represents a capital gain from certain small business stocks.
• Box 2d: Collectibles (28%) gain — Gain from the sale of collectibles, which is taxed at a maximum rate of 28%.
• Box 3: Nondividend distributions — Distributions that are not paid out of the earnings and profits of a corporation or a mutual fund.
• Box 4: Federal income tax withheld — Backup withholding that was taken out of your dividend payments.
• Box 5: Section 199A dividends — Specific type of qualified dividend that originate from real estate investment trusts (REITs) or publicly traded partnerships (PTPs).
• Box 6: Investment expenses — Your share of expenses from an investment company, and they are usually deductible.
• Box 7: Foreign tax paid — Any tax paid to a foreign country on foreign investments.
• Box 8: Foreign country or U.S. possession — Where the foreign country or U.S. possession where the foreign tax was paid is identified.
• Boxes 9-10: Cash and noncash liquidation distributions — Amounts received during liquidations.
• Box 11: Checkbox for FATCA filing requirement.
• Boxes 12-13: Exempt-interest dividends and specified private activity bond interest dividends — Relate to certain types of exempt-interest dividends.
• Boxes 14-16: These boxes show state tax-specific information.

 

1099-B, Proceeds from Broker and Barter Exchange Transactions

This is issued by brokers or barter exchanges to people who have sold assets during a given tax year. When you sell something for more than it cost you to acquire it, the IRS calls the profit your “capital gain,” and you must pay tax on this amount. The 1099-B form is essentially a record of your sales or trades of certain assets, like stocks, bonds, or commodities. It doesn't directly state your capital gains. Instead, it provides the necessary information for you to calculate them.

It's also important to note that some brokerages provide composite forms that combine your various types of income into one document for simpler reporting. This can include your income from interest (1099-INT), dividends (1099-DIV), and sales or trades of assets (1099-B).

Breaking down the boxes:

• Box 1a: Description of property.
• Box 1b: Date you acquired the security.
• Box 1c: Date you sold or disposed of the security.
• Box 1d: Proceeds or the money you got when you sold the security.
• Box 1e: Cost or other basis, often what you paid for the security. Might be adjusted for various reasons.
• Box 1f: Accrued market discount — The amount of discount that has built up over time if you purchased the bond for less than its face value (the amount it will be worth at maturity).
• Box 1g: Wash sale loss disallowed — Shows the amount of nondeductible loss in a wash sale transaction.
• Box 2: Checkboxes for short-term gain or loss, long-term gain or loss, and ordinary.
• Box 3: Indicate whether the proceeds reported are from the sale of collectibles or a Qualified Opportunity Fund (QOF).
• Box 4: Federal income tax withheld — Money your broker already sent to the IRS.
• Boxes 5-7: Checked if certain situations apply.
• Boxes 8-10: Show the realized and unrealized profit or (loss) on open and closed contracts for certain dates.
• Box 11: Shows the aggregate profit or loss on regulated futures or foreign currency contracts (Boxes 8, 9, and 10 are all used to figure this amount).
• Box 12: Indicates whether the basis of the security has been reported to the IRS.
• Box 13: Bartering — Shows the cash you received, the fair market value (FMV) of any property or services you received, and the FMV of any trade credits or scrip credited to your account by a barter exchange
• Boxes 14-16: State tax withholding information.

 

W2-G, Certain Gambling Winnings

This reports gambling winnings and any federal income tax withheld from those winnings.

Breaking down the boxes:

• Box 1: Reportable winnings — The value of the prize you won.
• Box 2: This box shows the specific date on which the gambling or lottery winnings were won.
• Box 3: Type of wager — Indicates the type of gambling or lottery winnings associated with the amount reported
• Box 4: Federal income tax withheld — If taxes have been taken out.
• Box 6: Shows the race (or game) applicable to the winning ticket.
• Box 7: Indicates the amount of additional winnings from identical wagers.
• Box 8 or 10: Shows the cashier and/or window number making the winning payment.
• Box 9: Your TIN/SSN
• Boxes 11-12: Your identification numbers from two forms of ID.
• Boxes 13-18: State and local tax information.

 

1099-G, Certain Government Payments

This reports payments from the government, whether it comes from the local, state, or federal level. Expect one if you've received assistance from the government, like unemployment benefits.

Breaking down the boxes:

• Box 1: Unemployment compensation — Money received from the government because you were unemployed.
• Box 2: State or local income tax refunds, credits, or offsets — A refund of state or local income taxes last year will show up here.
• Box 3: Box 2 Amount is for tax year — Indicates the tax year the refund, credit, or offset applies to.
• Box 4: Federal income tax withheld — If any federal tax was already taken out of your payments.
• Box 5: RTAA payments — Reports payments under the Reemployment Trade Adjustment Assistance (RTAA) program.
• Box 6: Taxable grants — If you received a taxable grant from a government agency.
• Box 7: Agriculture payments — Payments from the Department of Agriculture.
• Box 8: Trade or business Income (Checkbox) — If checked, Box 6 or 7 amounts are considered to be trade or business income.
• Box 9: Market gain — Reports market gain associated with Commodity Credit Corporation (CCC) loans.
• Box 10: State tax withheld — State tax was taken out of payments.
• Box 11: State identification no. — Shows payer's state identification number.
• Box 12: State distribution — Report the amount of the state tax refund.

 

1099-R, Distributions From Pensions, Annuities, Retirement or Profit-Sharing Plans, IRAs, Insurance Contracts, etc.

This reports distributions from a retirement plan or profit-sharing plan, including an IRA, pension, or annuity. It's possible to get one of these even if you're not yet retired — for instance, if you took out a loan from your 401(k) and didn't repay it. This form shows how much you were paid during the year (and how much was withheld for taxes).

Breaking down the boxes:

• Box 1: Gross distribution — Total amount you were paid during the year.
• Box 2a: Taxable amount — How much of the distribution is subject to tax. If this box is blank, it's up to you to determine the taxable amount based on IRS rules.
• Box 2b: Indicates whether the distribution is Taxable Amount Not Determined and/or if it is a Total Distribution.
• Box 3: This box shows any capital gain portion of the distribution that is included in the total amount reported in Box 2a.
• Box 4: Federal income tax withheld — How much tax was already taken out of the distributions.
• Box 5: Employee contributions/Designated Roth contributions or Insurance premiums — This shows the employee’s investment in the contract (after-tax contributions).
• Box 6: Net unrealized appreciation in employer's securities — Shows the Net Unrealized Appreciation (NUA) that you need to consider when calculating the tax treatment of your distribution.
• Box 7: Distribution code(s) — Represents the type of distribution you received.
• Box 8: Other — This box is used for any distribution that doesn't fit into the other specific categories provided on the form.
• Box 9a: Your percentage of the total distribution.
• Box 9b: Used to compute the taxable part of the distribution — For a life annuity from a qualified plan or from a section 403(b) plan (with after-tax contributions), an amount may be shown for the employee’s total investment in the contract.
• Box 10: Amount allocable to IRR within 5 years.
• Box 11: First year of designated Roth contribution.
• Box 12: Checkbox for FATCA filing requirement.
• Box 13: Date of payment.
• Box 14: State tax withheld — This shows if any state tax was taken out.
• Boxes 15-19: State and local information are for informational purposes only.

 

SSA-1099, Social Security Benefit Statement

This form reports the total amount of benefits you received from Social Security in the previous year.

Breaking down the boxes:

• Box 1: Name — Beneficiary's name or entity designated to receive the benefits or proceeds from a financial arrangement or contract.
• Box 2: Beneficiary’s Social Security number
• Box 3: Benefits paid in 20XX — The total amount of Social Security benefits received in the previous year.
• Box 4: Benefits repaid to SSA in 20XX — If you had to pay back some benefits to the SSA.
• Box 5: Net benefits for 20XX — This is Box 3 minus Box 4. It's the net amount of benefits you received after any repayments.
• Box 6: Voluntary federal income tax withheld — If you chose to have federal income tax withheld from your Social Security benefit.
• Box 7: Address — Your mailing address.
• Box 8: Claim number — If you need to contact the SSA regarding issues with your Social Security benefits, you might need to provide this claim number.

You can request a copy of your SSA-1099 directly on the Social Security Administration website.

 

In this section, you'll find a list of additional tax forms you can upload, apart from your income tax forms, during the filing process.

 

Form 1095, Health Insurance Coverage

Form 1095 is actually composed of three different forms that report information regarding your health insurance information. You may receive a 1095-A, 1095-B, or 1095-C.

📝 When filing your taxes with us, you only need to report or upload the information from your Form 1095-A. There’s no need to include your 1095-B or 1095-C, as these forms are used for record-keeping purposes only.

• Form 1095-A: Issued to individuals who enrolled in a qualified health plan through the Marketplace. It provides information about the coverage, premium amounts, and any advance premium tax credits received. You can upload this form or enter the information manually in the 'Drop-off Forms' section under the File Taxes tab.
• Form 1095-B: Typically sent by health insurance providers, including insurance companies, government-sponsored programs, and self-insured employers. It reports information about the health insurance plan, including the months of coverage. Form 1095-B is used to verify that you and your dependents had the minimum coverage. You don’t need to report it on your return.
• Form 1095-C: This form is provided by an employer. It reports information about the health insurance coverage offered to employees, including the months of coverage and any applicable employer contributions. This form is intended for your records and does not need to be reported when you file your return.

 

Form 1098, Mortgage Interest Statement

If you have a mortgage on your home, your lender or mortgage servicer will provide you with this form. You can upload this form or enter the information manually in the 'Drop-off Forms' section under the File Taxes tab.

 

Form 1098 E, Student Loan Interest Statement

If you made payments on a qualified student loan, the lender or loan servicer will provide you with this form. The student loan interest you paid may be eligible for a deduction on your federal income tax return, subject to certain income limitations. You can upload this form or enter the information manually in the 'Drop-off Forms' section under the File Taxes tab.

 

Form 1098-T, Tuition Statement

Form 1098-T provides information on the amounts paid for tuition, scholarships or grants received, and other educational expenses. It’s used to determine if the taxpayer is eligible for education-related tax credits or deductions, such as the American Opportunity Credit or Lifetime Learning Credit. You can upload this form or enter the information manually in the 'Drop-off Forms' section under the File Taxes tab.

To learn more we have a blog about this — Tax breaks for college tuition.

Do you accept credit card payments for your work? What about payments through apps like PayPal or Venmo? If you answered yes, you might receive a Form 1099-K. 

This form is a tax document used to report income received through payment cards and third-party network transactions. This includes credit card payments, debit card payments, and any other form of payment made with a credit card. Third-party network transactions involve online payment platforms like PayPal and Venmo.

1099-K forms are essential for individuals and businesses at tax time, as they provide a detailed record of their income received through electronic payment methods, AND they are also used by the IRS to ensure accurate tax reporting so it's important to report any 1099-K forms you receive when you file.

For freelancers and independent contractors, you’ll refer to any 1099-Ks you receive when you file your taxes. If you’re using the Keeper app to file, you can simply upload the form and we’ll do the rest.

For 2023 and prior years, third-party payment platforms like PayPal are only required to send out Forms 1099-K to taxpayers who receive over $20,000 and have over 200 transactions.

For tax year 2024, the IRS plans for a threshold of $5,000 to phase in reporting requirements.

The form typically reports gross income, which includes the total amount of payments processed through payment card transactions or third-party network transactions. This includes not only the income you received but also any refunds, returns, or chargebacks. If you had a significant number of returns or chargebacks during the tax year, it might explain why the reported income is higher than what you received. The gross amount of income reported on the 1099-K form also does not reflect business deductions, and this is where Keeper can help save on your tax bill. 

When you earn income reported on a 1099-K, you may be eligible for certain deductions to reduce your taxable income. Here are some common deductions that self-employed individuals and independent contractors often take for income reported on 1099-K forms:

• Business Expenses: This includes costs for supplies, equipment, advertising, business-related travel, and more. 
• Home Office Deduction: If you use a portion of your home exclusively for business purposes, you may be eligible for a home office deduction. This can include a portion of your rent, mortgage interest, utilities, and maintenance costs.
• Vehicle Expenses: If you use your vehicle for business purposes, you can claim deductions for mileage or actual expenses related to the use of your vehicle.
• Health Insurance Premiums: Self-employed individuals may be eligible to deduct the cost of health insurance premiums paid for themselves, their spouses, and dependents.
• Retirement Contributions: Contributions to self-employed retirement plans, such as a Simplified Employee Pension (SEP) IRA or a Solo 401(k), are deductible.
• Self-Employment Tax Deduction: Self-employed individuals can deduct the employer portion of self-employment taxes, which includes Social Security and Medicare taxes.
• Education and Training Costs: Expenses related to courses, workshops, or training that are directly related to your business and help improve your skills may be deductible.
• Meals and Entertainment: You can typically deduct 50% of the cost of meals directly related to your business activities.
• Legal and Professional Fees: Fees paid to accountants, lawyers, and other professionals for business-related services are deductible.
• Depreciation: You can deduct the depreciation of business assets over time.
• Software and Technology Expenses: Costs for software, computer equipment, and other technology used in your business can be deductible.
• Advertising and Marketing Expenses: Money spent on advertising, marketing, and promotional activities can be deductible.

It's important to keep thorough records of all your expenses, and Keeper can help ensure that you claim all the deductions you're eligible for and comply with IRS rules and regulations.

When filing with Keeper, select all your deductions in the Keeper app under the Deductions tab and upload or enter your 1099-K form in the Freelance Income section of the tax filing menu, and Keeper will take care of the rest.

 

Additional Resources: 

• 1099-K Form Help 
• What if I didn’t receive my 1099-K? 
• Uber 1099-K
• Venmo 1099-K 
• PayPal 1099-K
• What is a 1099-K?