The standard due date for most forms to be in the mail to you is January 31st. Keep the following forms in a safe place until you are ready to do your taxes:
W-2 Forms: Make sure you have one for each job you worked in 2002. If your form doesn’t arrive by the first week in February, call your employer or your employer’s payroll service to inquire when you will receive the W-2. If your employer went out of business, find your final pay stub if you did not receive a W-2. Get form 4852, which can substitute for the missing W-2.
Forms 1099-MISC: Freelance independent performers may get this form for the fees they charged. Since the IRS gets a copy, be sure to gather up all of the freelance fee income. It’s always best to keep your own record and compare it to the 1099-MISC. Mistakes are not so uncommon. Fees under $600.00 for the year may not be reported to you or the IRS.
Forms 1099-INT and 1099-DIV: Banks, brokerage firms, mutual funds, and individual companies are among those who will issue these forms to report your 2002 income. Form 1099 needs only be issued if money received was in excess of $10.00.
Form 1098: This form reports the amount of mortgage or home equity interest for the year. It may also show the amount of real estate taxes paid from your mortgage escrow account for 2002.
Other items you need for preparing your taxes include settlement or escrow statements if you refinanced a mortgage, paperwork noting the original cost of stock or mutual funds sold during the year, a logbook stating business mileage and expenses throughout the year, and a record of any estimated tax payments made. Of course, you need to track your other business expenses by category and total them for the year. This is the most time consuming, so develop a method and get into the habit of saving all of the backup receipts.
I call all of the above “doing your tax homework.” Use the prior year’s tax return as a guide so you don’t forget any items. Pick a rainy day in February and put some Mozart on the stereo. If you are well organized, it shouldn’t take more than four hours.
