Common Tax Forms, Explained

Tax season has a way of making even the most organized people feel overwhelmed, especially if you’ve worked multiple jobs, picked up side gigs, or switched employers during the year. Between unfamiliar acronyms and forms arriving in your mail or inbox, it’s easy to wonder: What am I supposed to do with this?

Luckily, with a quick review of what to expect, you can go from confusion to confidence. This guide breaks down the most common tax forms, who typically receives each one, and how they’re used when filing your taxes.

Why Tax Forms Matter

Tax forms are how income, payments, and certain financial activities are reported to you and the IRS. Even if you don’t recognize a form or don’t think it applies to you, ignoring it can lead to mistakes, delays, or IRS notices later on.

Quick note: It’s common to get multiple forms in the same year—especially if you worked more than one job, changed employers, earned interest, or picked up side income. Each form reports a different type of income, and more than one may apply to you.

The key rule: If a form reports income, it usually needs to be included on your tax return. Didn’t receive a form you expected? You’re still responsible for reporting income, even if a form never shows up. If you were paid, it likely still counts as taxable income. Bank statements, pay records, or app payment histories can help fill the gap.

Below, we break down the most common forms and what each one means for you.

The Most Common Tax Forms (and Who Gets Them)

W-2: Wage and Salary Income

Who gets it: Employees
Who sends it: Employers

The W-2 reports:

• Total wages earned
• Federal, state, and local taxes withheld
• Social Security and Medicare contributions
  

What to do with it:
Use the W-2 to file your tax return. If you had multiple jobs, you should receive a W-2 from each employer.

Note: Employers must send W-2s by January 31, 2026.

1099-NEC: Non-Employee Compensation

Who gets it: Freelancers, contractors, gig workers
Who sends it: Businesses that paid you $600 or more

This form reports income earned outside of traditional employment — for example:

• Freelance work
• Independent contracting
• Side gigs
  

What to do with it:
Report this income on your tax return. Taxes usually aren’t withheld, so you may owe self-employment taxes. If this income made up a large portion of your earnings, you may also need to account for quarterly estimated tax payments.

Note: Even if you don’t receive a 1099-NEC, you’re still responsible for reporting the income.

1099-K: Payment App & Card Transactions

Who gets it: People paid through payment platforms or cards
Who sends it: Payment processors (e.g., payment apps, online platforms)

This form shows the gross amount of payments processed on your behalf.

What to do with it:
Reconcile it carefully. The amount shown may include:

• Refunds
• Fees
• Non-taxable transactions

Important: Only report the income that’s actually taxable. A 1099-K simply reports payment activity, it does not mean all of that money is taxable income.

1099-MISC: Miscellaneous Income

Who gets it: Individuals receiving other types of income
Who sends it: Businesses or payers

This form may report:

• Rent payments
• Royalties
• Prizes or awards
• Legal settlements
  

What to do with it:
Include the reported income when filing your return, based on its category.

1099-INT: Interest Income

Who gets it: People who earned interest
Who sends it: Banks or financial institutions

If you earned interest from…

• Savings accounts
• CDs
• Checking accounts

…you’ll likely receive this form.

What to do with it:
Report the interest income on your return, even if it’s a small amount.

1099-DIV: Dividend Income

Who gets it: Investors
Who sends it: Brokerages or investment firms

This form reports:

• Dividends from stocks or mutual funds
• Capital gain distributions
  

What to do with it:
Use it to report investment income, which may be taxed at different rates.

1098: Mortgage Interest Statement

Who gets it: Homeowners with a mortgage
Who sends it: Mortgage lenders

This form shows:

• Mortgage interest paid
• Property taxes paid (in some cases)
  

What to do with it:
If you itemize deductions, this form may help reduce your taxable income.

Final Tips for Tax Form Season

Tax forms are simply tools—not something to fear. Once you understand what each one represents and why you received it, filing your taxes becomes far more manageable. Take it one form at a time, save your records, and ask for help when you need it. A little clarity now can save a lot of stress later. Remember to…

• Save every tax form you receive, even if you’re unsure it applies
  
  
• Compare forms to your own records for accuracy
  
  
• Keep copies for at least three years
  
  
• When in doubt, consult a tax professional

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