Income Tax Preparation-Checklist of Income Items

It’s now late January and you’re probably starting to get those tax information forms in the mail. As far as items of income that must be reported on your tax return, following is a checklist of the most common statements that you’ll need to have in order to report income received.

Form W-2: The most common of the tax information forms. Anyone who works for a salary or a wage should receive a W-2 that shows taxable income and taxes withheld.

Form 1099-Int: This is the information return that you will receive from banks and financial institutions for any interest earned in 2007 if the amount of interest earned is over $10.

Form 1099-Div: This information return shows dividends earned on stock held in 2007. This form also shows the amount of dividends that are qualified dividends and any capital gain distributions you may have received.

Form 1099-B: This information return shows the gross proceeds from any stock sales. This form does not itself show any cost basis information although many brokers do send stock cost basis information along with the 1099-B as supplemental information.

Form 1099-Misc: You may receive this form is you are self-employed. Self employed income in shown in Box 7. But many other types of income may be reported on this form, such as prizes, rents, or royalties. Box 5 will indicate any income tax withholding.

Form 1099-R: This information return reports distributions from retirement and pension plans. Pay special attention to the code in Box 7. The code in Box 7 indicates the type of distribution that determines whether or not the distribution is taxable, and, if so, whether or not the distribution is subject to an early withdrawal penalty.

Form 1099-G: This information return shows payments received from government entities. The most commonly reported information on Form 1099-G is refund of state income taxes and unemployment benefits.

Form 1099-SSA: This information return is from the Social Security Administration and

reports all Social Security benefits received.

Schedule K-1 of Form 1065: This form reports income received from a partnership if you are a partner in a partnership.

Schedule K-1 of Form 1041: This form reports income received from an estate or a trust if you are the beneficiary of an estate or trust.

Schedule K-1 of Form 1120S: This from reports income received from an S Corporation if you are a shareholder in an S corporation.

The above list includes most of the statements that you’ll need to report income on your return. Keep in mind, however, that you may receive income that you will need to report on your income tax return but you will not receive any statements for. Alimony payments received and gambling income are two examples.

For more information on the above forms, please go to www.irs.gov.