Whether you are greeting it with eager anticipation or a touch of anxiety, tax season is upon us. This time each year, mailboxes begin to fill with all manner of tax forms, seemingly written in a language spoken only by accountants and computers. Whether you hire out the task, consult with a tax professional, or do it yourself, there are forms to be filled. Here are some common tax forms that you might see from your bank, decoded for your convenience!
Form 1099-INT
This form shows interest income earned during the tax year. This could include interest earned on savings bonds, checking and saving accounts, and certificates of deposit (CDs). This is where your bank shows you exactly how much they’re paying you to keep your money with them.
Form 1098
If you have a mortgage loan, you can expect a 1098 as well. This details your annual mortgage interest, including points, paid during the previous tax year. It’s an excellent opportunity to evaluate whether your current mortgage rate is still working for you!
The following forms are relevant to anyone who contributes to or otherwise maintains an Individual Retirement Account, or an IRA.
Form 1099-R
Simply enough, this form indicates distributions taken from your Individual Retirement Account.
Form 5498
This will detail contributions, rollovers, and conversions relating to your Individual Retirement Accounts. It also lists the Fair Market Value (FMV) and the Required Minimum Distributions (RMD) from your IRAs. Banks are required to submit this form to the IRS by May 31st.
The following forms are specifically relevant to those maintaining or contributing to a Health Savings Account (HSAs)
Form 1099-SA
This form contains information about distributions taken from your Health Savings Account.
Form 5498-SA
Here you will find an itemization of contributions made to your Health Savings Account. This form will also contain information regarding the Fair Market Value of your HSA. Your bank is required to file this form with the IRS by May 31st.
Dundee Bank wants you to feel secure and confident, and we are always here if you have questions or concerns! If you have questions about tax forms that we didn’t cover here, be sure to ask your tax advisor.
Stop by or give us a call if we can be of any service to you, and thank you for choosing Dundee Bank!
