The Most Common Tax Forms Explained (W-2, 1099, 1098, and More)

Tax forms can feel confusing, but most people only receive a few of them each year. Here’s a simple breakdown of the most common forms and what they’re used for.

W-2 – Wage & Salary Income

If you’re an employee, your employer sends you a W-2 showing:

• Total wages earned

• Federal and state taxes withheld

• Social Security and Medicare contributions
  Most people receive this by January 31.

1099-NEC – Contract or Freelance Income

If you’re self-employed or did contract work, clients may issue this form.
It reports income paid to you, but no taxes are withheld, so you may owe self-employment tax.

1099-K – Payment App Income

Platforms like PayPal or Venmo may issue this depending on thresholds.
It summarizes payments received for goods/services.

1099-INT / 1099-DIV – Interest & Investment Income

Banks and investment platforms send these forms if you earned interest or dividends.

1098-T – Tuition Statement

Students receive this form showing tuition paid, which may relate to education credits.

1098 – Mortgage Interest Statement

Homeowners receive this form summarizing mortgage interest paid during the year.

Reminder:

These forms help ensure your tax return matches what institutions report to the IRS.

If you’d like help understanding which forms apply to you, I’m accepting new Week 1 clients.
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Disclaimer:

This content is educational and not tax advice. Please consult a professional for guidance on your personal situation.