In addition to common forms like W-2s and 1099s, several other IRS forms are essential for accurately reporting financial and tax-related information. Whether you're a taxpayer, student, homeowner, employer, or tax preparer, understanding these forms ensures proper filing and helps avoid penalties. Here's a breakdown of what each form is, who receives or files it, and what it's used for:
Issued by mortgage lenders, Form 1098 reports the amount of mortgage interest a homeowner paid during the year. This interest may be deductible on your tax return if you itemize deductions. It can also include points paid, mortgage insurance premiums, and certain real estate taxes.
Form 1098-T is provided by eligible educational institutions to students. It reports tuition and other education-related expenses that may qualify for education credits such as the American Opportunity Credit or Lifetime Learning Credit.
The W-3 form is used by employers to summarize all W-2 forms they are submitting to the Social Security Administration (SSA). It acts as a cover sheet for the entire batch of W-2s.
These forms provide information about your health insurance coverage, required under the Affordable Care Act (ACA). The specific form depends on how you received your insurance:
Mistakes happen, and the IRS provides correction versions of most major forms (e.g., 1099-C, W-2c, 1095-C corrected). These forms are used to correct errors on previously filed returns or information returns.
Filing taxes involves more than just the basics. Understanding the purpose and requirements of these lesser-known but crucial forms—like the 1098 series, W-3, 1095 forms, and correction forms—can save you money, time, and stress during tax season. If you're unsure how to file or interpret any of these, consider speaking with a tax professional or using a reputable tax software that supports them.
