The More You Know!
Below are some helpful links to the IRS website where they explain helpful tips and tricks to make life easier.
IRS:
San Diego area taxpayers impacted by severe storms, flooding qualify for tax relief; various deadlines postponed to June 17
Let’s dive into what your Tax Documents Mean!
Taxes are overwhelming! This should help you understand the tax forms you receive.
W-2 Document:
You receive this from your employer
Shows you:
a. Gross salary
b. Retirement contributions made through payroll
c. Taxable benefits given by your employer
d. Calculates your Medicare and Social Security tax paid through payroll
W-4 Document:
Tell your employer how much tax to withhold from your paycheck.
Usually done in your onboarding process and/or at your request if changes need to be made
1099-MISC:
Comes from a business that pays you as a self-employed individual
Income sources vary, but here are examples of what could be included:
a. Rents
b. Nonqualified deferred compensation
c. Fishing boat proceeds
d. Prizes or awards won
1099-NEC:
Independent Contractors for a business
Non-employee compensation
1099-DIV:
Received from a bank or financial institution where you had dividend income from your stock holding.
1099-INT:
Document received from your bank or financial institution that you earned interest on checking or savings accounts held there.
1099-B:
Calculates any realized capital gains or losses that need to be reported
1099-S:
The sale of real estate property given to you by your title company
1099 Composite:
If you have any after-tax brokerage accounts: you may receive a 1099 form that includes your 1099-INT, 1099-DIV, and your 1099-B
1099-Q:
Any distributions you made from a 529 or Coverdell ESA account
1099-R:
If you took any distributions from a retirement account like:
a. IRA’s
b. Pensions
c. Qualified Annuities
d. 401K’s
e. Other sponsored retirement plans
1099-G:
Income received from state or government:
a. Unemployment
b. Workers Compensation
c. Paid leave
5498:
This is received after your tax return has been filed
For your own record keeping
Shows you the contributions you made to your individual retirement accounts
1098:
Shows you how much mortgage interest you paid on your home, if applicable.
1095:
Covered by qualified healthcare plan during the filing year
States what months you were covered and any family members that were under your coverage umbrella.
2023 Federal income Tax Brackets and Rates
For Single Filers, Married Couples Filing Jointly, and Heads of Households
Don’t let a tax mistake ruin newlywed bliss.
Tax Tip 2022-188, December 8, 2022
When people get married their tax situation often changes. A taxpayer's marital status as of December 31 determines their tax filing options for the entire year, but that's not all newlyweds need to know.
Here's a tax checklist for newly married couples:
Name and address changes
Name – When a name changes through marriage, it's important to report that change to the Social Security Administration. The name on a person's tax return must match what is on file at the SSA. If it doesn't, it could delay any tax refund. To update information, taxpayers should file Form SS-5, Application for a Social Security Card. It is available on SSA.gov, by phone at 800-772-1213 or at a local SSA office.
Address – If marriage means a change of address, the IRS and U.S. Postal Service need to know. To do that, people should complete and send the IRS Form 8822, Change of Address. Taxpayers should also notify the postal service to forward their mail by going online at USPS.com or visiting their local post office.
Withholding
After getting married, couples should consider changing their withholding. Newly married couples must give their employers a new Form W-4, Employee's Withholding Allowance within 10 days. If both spouses work, they may move into a higher tax bracket or be affected by the additional Medicare tax. They can use the Tax Withholding Estimator on IRS.gov to help complete a new Form W-4. Taxpayers should review Publication 505, Tax Withholding and Estimated Tax, for more information.
Filing status
Married people can choose to file their federal income taxes jointly or separately each year. While filing jointly is usually more beneficial, it's best to figure the tax both ways to find out which makes the most sense. Taxpayers should remember, if a couple is married as of December 31, the law says they're married for the whole year for tax purposes.
Scams
All taxpayers should be aware of and avoid tax scams. The IRS will never initiate contact using email, phone calls, social media or text messages. First contact generally comes in the mail. Those wondering if they owe money to the IRS can view their tax account information on IRS.gov to find out.
More Information:
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