Tax season is right around the corner, everyone! Doing our taxes always has a way of sneaking up on us, but it doesn’t need to be that way. We can prepare for it early so that we’re not blindsided with forgotten deadlines come April.
Possibly, the most overwhelming part of prepping your taxes is knowing which forms and documents you need, when you should have them, and who’s sending them to you. We’ve put together a basic reference to get you started.
When are taxes due this year?
Taxes are due Tuesday, April 18, 2023. Mark it on your calendar, set a reminder on your phone, whatever you need to do!
Other important dates to note on your calendar:
- April 18, 2023: last day to file Form 4868 requesting an extension to file your
individual income tax return - April 18, 2023: last day for 2022 contributions to HSA and IRA accounts
- April 18, 2023: First Quarterly estimated taxes due (for self-employed individuals)
- Additional dates: June 15, 2023; September 15, 2023; and January 15, 2024
- October 16, 2023: Application for individual filing extensions due
- December 31, 2023: Required minimum contributions taken for those aged 73+
What forms do I need from the bank to file my taxes?
You will receive a 1099-INT form from any bank account and from any banking institution where the account earned $10 in interest or more.
If you have a mortgage on your home or have multiple mortgages, you’ll receive a 1098 mortgage interest statement for each loan that you have that reports $600 or more of interest. Keep in mind there are many different variations of the 1099 and 1098 forms that will not come from your bank such as the 1098-T, which reports all qualified tuition expenses from university, college, vocational school, or other postsecondary schools.
Here are other forms you may need that do NOT come from your bank:
- W2s, 1099-G (unemployment), 1099-misc (rents, other incomes), 1099-NEC (for selfemployed individuals receiving money from a business, such as a contractor or freelancer)
- 1099-R IRA/pension/annuity incomes
- 1099-b, s, sales of stock and property
- 1099-SA HSA reimbursements
- 1095-A health insurance through marketplace
- 1098-E on student loan interest
Why do I need those forms?
The 1099-INT form shows how much money in interest you received including any taxes withheld and if any of the interest is tax exempt. All taxable and tax-exempt income needs to be reported on your federal income tax return.
The 1098 mortgage interest forms are used to claim a tax credit or tax deduction if you’ve paid more than $600 in interest on that loan for that reporting year. You do not have to report the information from the 1098 mortgage statement if it’s less than $600, even if your lender or bank sends it to you.
The various other forms listed above are for sources of income from rental properties, side hustles, alimony/child support, awarded prizes like lottery tickets, trust accounts, and IRA accounts. These forms are also for tax deductions such as for health insurance and student loan interest payments.
Tax forms are needed to accurately report all income, expenses, and assets to your local and federal governments so that you’re being taxed appropriately (based on factors such as age and gross income) and that your eligibility for any refunds is accurate.
How do I get these forms from my bank?
We will send your 1099-INT and 1098 mortgage interest statement forms through the mail starting in January. We’re obligated to send these out to all customers before January 31, 2023. These forms can also be accessed through your online portal via Auburn Savings Online. The tax forms can be found under the Documents link in online banking. Select Documents, then select Tax Forms under the Document Type option. The most recent tax year will be automatically selected. Click Apply to access your specific forms.
Important note: the IRS will never send you tax related forms by electronic means such as email or text message.
What are some other frequently asked questions about tax season?
We can’t claim to be tax experts, per se, but these are some commonly asked questions that we feel comfortable answering.
How do I know if I need to file taxes? There are many factors that contribute to this, but the main factor will be your gross income. Those younger than age 65 who have earned $12,400 or more in income will need to file a tax return. Married couples under the age of 65 need to file if they jointly earned $24,800 or more. For more information on this, visit the IRS site.
What happens if I miss a deadline? If you miss a deadline, don’t panic! There are options, but it will depend on what deadline was missed and whether you owe or are owed taxes. If you missed the filing deadline and are expecting a tax refund, you technically have three years to claim your refund (but we suggest you file them asap). If you owe money and missed the filing deadline, you should arrange to file as soon as you’re able. Each day your tax return is not filed, you’ll be charged interest and failure to file penalties. Not fun!
What if I owe taxes? When you “underpay” your taxes for the year, you owe more taxes than you paid in during the year. This happens to freelancers, independent contractors, consultants, and other self-employed individuals because they don’t pay payroll taxes throughout the year. If this happened to you and you’re not self-employed, check your withholding allowance. A single individual with no children should only claim one allowance.
What if I can’t afford the taxes that I owe? Arrange with the IRS immediately to get on an installment plan. The sooner you get set up with a payment plan, the less interest and late penalties you’ll owe back.
We want everyone to be prepared, accurate, and on time with their taxes this year. We believe it starts with having all the proper information and documentation at the ready.
Doing this will break down the tax process into smaller, more actionable steps and will
build your confidence. You’ve got this! And if you’d feel better, you can always reach out
to a tax professional who will help you throughout the entire tax filing process.
If you’d like additional help regarding necessary tax documents from Auburn Savings, visit any branch and a Customer Representative can walk you through the process.