Wednesday, January 31, 2018


All state returns (that apply to me and my clients) are now finally up and available at the appropriate state tax agency website.

The 2017 NJ-1040 form was finally made available at the NJDOT website forms page at 11:00 AM on Monday.  As expected, there was no change to the physical format or layout of the form, except for the addition of Line 12c on Page 1 to indicate if the taxpayer and/or spouse or civil union partner is eligible to the Veteran Exemption (although the word exemption is misspelled “exeption”).

From NJDOT – items that will be accepted to document a claim for the new Veteran Exemption:

* DD-214 - Certificate of Release or Discharge from Active Duty

* DD-256 - Discharge Certificate

* WD AGO 53 - Enlisted Record and Report of Separation Honorable Discharge

* WD AGO 53-98 - Military Record and Report of Separation Certificate of Service

* WD AGO 55 - Honorable Discharge from the Army of the United States

* NA Form 13038 - Certificate of Military Service

* NAVCG 553 - Notice of Separation from U.S. Coast Guard

* NAVMC 78PD - U.S. Marine Corps Report of Separation

* NAVPERS 553 - Certificate of Separation/Discharge from U.S. Navy

* County Veteran ID Card - Veteran identification card issued by any of the New Jersey counties

* Federal Veteran ID Card - Veteran identification card issued under the Veterans Identification Card Act

Just a reminder – regardless of when you submit your 2017 NJ-1040 to the state, refunds will not begin to be issued until March 1st.

As for the New York State resident (IT-201) and non-resident (IT-203) returns - the only change to the physical format or layout of the forms appears to be the addition of a Line 60o (IT-201) or 57o (IT-203) to add a new voluntary contribution option for the Veterans’ Home Assistance Fund”, and the addition of a line 79a (IT-201) and 69a (IT-203) to allow taxpayers to allocate via direct deposit all or a portion of their refund to NYS Section 529 college savings accounts via the new Form IT-195.

The NYS standard deduction and tax rate schedules have been adjusted as per the annual COLA.  There have been a fee changes and additions to obscure state credits, but nothing that would affect any of my clients.

The "What's New for 2017" section of the NY state income tax instruction booklets says "A recent law change amended and expanded the definition of NYS source income", but does not explain just how.  When I found out just what the state is talking about I will post it here in a subsequent post.

The biggest issue facing those who file New York State income tax returns going forward – both residents and non-residents – involves the changes made beginning in 2018 via the GOP Tax Act, specifically the “conformity” of the state return to the federal return and a NYS requirement that taxpayers who claim the federal Standard Deduction also claim the NYS Standard Deduction.

The current NYS Standard Deduction for a single filer is $8,000, compared to the $12,000 federal amount for 2018.  And for a married couple is it $16,050, compared to $24,000. 

While NYS does not allow a deduction for state and local income tax or sales tax, it does permit a full deduction for real estate taxes, now limited to $10,000 on the federal return.  Many NJ residents filing a NYS non-resident return and NYS residents pay more than $10,000 in real estate taxes.  And the loss of Miscellaneous Expenses subject to the 2% of AGI exclusion reduces both federal, and conforming NYS, itemized deductions.

It has been suggested that if NYS continues to conform to the new federal rules beginning in 2018 taxpayers who file NYS returns could see a $1.5 billion increase in state tax.

New York is not alone in having to fact this problem.  If the 41 states with an income tax almost all of them at least partially base taxable income on the federal return.  New Jersey and Pennsylvania are exceptions – they do not follow the federal return and have minimal allowable deductions. 


Monday, January 29, 2018


I did some “horn tootin’” at my other blog – THE TAX PROFESSIONAL – this morning.  So let me continue the shameful tootin’ of my own horn here.  Sorry to be so “Trump-like” – although, unlike Trump, I actually have something to toot about here.

I was just notified that I was honored to be selected as #24 on the list of “Top 25 Must-Read Accounting Blogs” at ACCOUNTING DEGREE REVIEW.

In compiling the list, the editors “looked for accounting-related blogs that are active, regularly updated throughout the year with knowledgeable, useful, well-written, and engaging content.”

I am certainly in good company on the list.

FYI – the fact that I am #24 does not imply any ranking.  The blogs are presented simply in alphabetical order by title.

Here is what they have said about THE WANDERING TAX PRO -

A wonderfully eccentric, 40-year accounting veteran, Robert Flach takes a down-to-earth approach with The Wandering Tax Pro blog. Writing in an informal, instantly-recognizable voice, Flach takes on current events, politics, and money with a sharp sense of humor and a 'mad as hell' fearlessness. Posts from 2017 have run heavy on the politics, with well-informed consideration (and occasional take-downs) of government shenanigans, especially with tax reform. His up-front title, ‘Like Frankenstein, The Tax Code Must Be Destroyed’, pretty much says it all.”

I am truly honored by the selection and thank the site for the inclusion.


This will be the last BUZZ installment until after the end of my tax-season hiatus.  I will return with more BUZZ after April 17.

* The word from Michael Cohn at ACCOUNTING TODAY – “IRS to openfiling season Monday {today – rdf} with some extra warnings”.

The IRS may begin tax season today, but I do not begin my tax season until February 1st.  Don’t forget to return here on February 1st for the annual posting of THE TWELVE DAYS OF TAX SEASON!

The IRS extended impacted taxpayers’ deadlines that fell (or will fall) between December 4, 2017 and April 29, 2018 to April 30, 2018. This includes the Form 1040 deadline of April 17th (it will be April 30th for impacted taxpayers). This impacts individuals and businesses who are in Los Angeles, San Diego, Santa Barbara, and Ventura Counties who were impacted by the disasters.”

* If you haven’t already found a tax professional to prepare your 2017 returns yet you can begin your search at my website FIND A TAX PROFESSIONAL.

* More proof that politicians are idiots in “More States Considering Dubious SALT Charitable Contribution Workaround” from Jared Walczak of the TAX FOUNDATION.

Jared correctly points out “what you really need to know” - 

·         Charitable contributions to government are only deductible, per IRS guidance, if the contribution “is solely for public purposes (for example, a gift to reduce the public debt or maintain a public park).” By contrast, these contributions primarily serve a private purpose (reducing federal tax liability through recharacterization), as they do not yield any increased revenue for the state.

·         When claiming the charitable deduction, the taxpayer must exclude contributions from which one benefits. For instance, if one purchases a $250 ticket to a benefit dinner, and the fair market value of the dinner is $50, then $200 can be deducted—not $250. In this instance, the taxpayer receives a benefit equal to the entire value of the contribution in lieu of taxes (the corresponding tax credit), wiping out any deductible share.

·         Case law and IRS regulations generally require charitable intent for a contribution to be deductible, meaning that the individual does not receive a substantial benefit from the contribution. The sole purpose of the proposed contributions in lieu of taxes proposal is financial gain. (the U.S. v. American Bar Endowment, Hernandez v. Commissioner, Singer Co. v. U.S.)

·         The IRS has broad authority to classify a payment or charge as a tax based upon its real nature. If it looks like a tax and acts like a tax, the IRS and the courts could simply say that it is a tax.”

* Before I begin my tax filing season blog post hiatus at THE TAX PROFESSIONAL I do a bit of “Horn Tootin’”.   


What is the true “State of the Union”?

A dangerous, deplorable and despicable ignorant and incompetent mentally unstable malignant narcissist, who continues to destroy the credibility, integrity and stature of the White House domestically and internationally on a daily basis, is the President.

America will NEVER be great again until Donald T Rump, and all Republicans who publicly support and defend him, are removed from office.


Wednesday, January 24, 2018


Just so there is no doubt about my opinion of the current President of the United States, let me be crystal clear.

Donald T Rump is a deplorable and despicable human being.  He is a worthless piece of shit.

He is an ignorant, incompetent, and delusional mentally unstable narcissist and sociopath who is totally unfit to serve as President.

His every thought, word, “tweet”, and action is motivated and controlled by his extremely excessive narcissism and delusions of infallibility, and his desire for personal financial gain - and absolutely nothing else.

He has no “political” agenda, nor any political beliefs or convictions.  His only agenda is, and has always been, (1) feed ego and (2) line pockets, in that order.  His one and only true belief is “Trump is great and Trump is good”. 

As a candidate and as President he has rarely, if ever, made a completely truthful statement to anyone about anything.  It is impossible to believe a word that comes out of his mouth.

Trump has never shown any respect for anyone or anything, and, despite the office he holds, he does not deserve any respect from anyone.

I will constantly and consistently vocally and aggressively oppose and denounce Donald T Rump the man via any venue available to me until he is removed from office. 

I do not oppose and denounce Trump because he is an alleged Republican or conservative – he is neither.  My opposition is not political – it is patriotism.  I join millions of Americans – Democrats, Republicans, and Independents, liberals, moderates, and conservatives – who oppose and denounce Trump and call for his immediate removal from office.

Got it?


Tuesday, January 23, 2018


I have always said that H+R et al “charge gourmet restaurant prices for fast food service”.  Basically, I am observing that Henry and Richard, and the others, ain’t cheap, or even reasonable, and the fees are certainly not commensurate with the service.  But comparing the service at tax preparation chains to that received at fast food chains is not fair – nor true.

Prior to being diagnosed with diabetes I was a frequent patron of McDonald’s, Burger King and Wendy’s.  For the most part, I found the service provided by these chains to be most definitely “appropriate”.  And, again for the most part, I most certainly received value for my money. 

Those who use tax preparation chains will NOT be able to say the same thing when describing their experience.

And I must point out that nobody at McDonalds, Burger King or Wendy’s tried to force me to buy fries or onion rings that I neither wanted nor needed.

So, more appropriately, H&R et al “charge gourmet restaurant prices for service that is inferior to the service you get at a fast food chain.”

Of course, to be fair, I must always include in my assessment of tax preparation chains the following statement –

It may actually be possible that the best tax preparer, at the best price, for your particular situation is an H+R Block, or other chain, employee.  But this is only because of the individual education, experience, ability, temperament, and other factors that are specific to that individual preparer or perhaps that unique and specific franchisee.

Hey, it is better to be safe than sorry.  Bottom line - don’t use Henry and Richard or another chain to have your 2017 income tax returns prepared.  If you are looking to find a tax pro you can start here.

+ Hey fellow tax pros – did you see Monday’s post at THE TAX PROFESSIONAL?

+ This past Sunday was the first payroll I processed for a business client using the new tax withholding tables that were revised to reflect the changes of the GOP Tax Act.  I was curious to see if employees were actually getting any more money in their paychecks.

The gross payroll – total wages paid - for 20 employees for the 2-week pay period was up about $3,600 from the January 8th payroll, but the federal income tax withholding was $1,050 less.  So, there actually was more money in the paychecks.

However, the pay checks of the two highest paid employees, including the millionaire owner of the business, with the same gross income for the two payroll periods being compared, were increased by over $750 due to reduced federal income tax withholding.  Obviously, the increases in the paychecks of the lower paid employees were small.

I do worry, being cynical, that the withholding tables are a bit too “generous” to try to prove that serial liar Donald T Rump was telling the truth for once when he said workers would see increased paychecks thanks to the Act.  I expect that, while individual paychecks will be slightly higher, 2018 tax return refunds may be lower, or balances due higher, especially for employees who live in New Jersey, as the employees of the above client do.

I am not alone in my concerns.  In “Democrats raise concerns about IRS withholding tables” at TAXPRO TODAY Michael Cohn tells us (highlights are mine) -

The ranking Democrats on the tax-writing House Ways and Means Committee and Senate Finance Committee are worried the Internal Revenue Service might succumb to political pressure by releasing withholding tables this year that cause employers to withhold too little in federal taxes from their employees’ paychecks to make it appear the tax cuts are larger than they really are, with the result that taxpayers will end up owing more money on their taxes next year.”

+ Speaking of business clients and the GOP Tax Act, also this past week-end a business client, a family owned “regular” (non-S) corporation with 2 shareholders that usually has net taxable income of under $50,000, asked if its tax will be reduced under the new tax law.

When the lower corporate tax rate was originally discussed I had thought the entire rate scale would be reduced. I think I had read somewhere that those currently paying 15%, based on net taxable income, would pay 8% under “tax reform”. However, everything I have read says the income tax rate in the Act is a flat 21% tax rate on net taxable income for all “regular” (non-S) corporations.

So smaller closely held corporations, with net taxable income of $50,000 or less, who previously paid 15% in federal income tax will actually see a 6% tax increase, and, because the sliding scale of tax rates is gone, those with $75,000 or less in taxable income will see a 2+% increase.

Once again true small business gets screwed!

+ FYI - some guidance from the IRS on one of the changes in the GOP Tax Act.

The weekday daily “Checkpoint Newsstand” email newsletter tells us what it learned from the “Frequently Asked Questions” (FAQs) posted to the IRS website -

The FAQs clarify that a Roth IRA conversion made in 2017 may be recharacterized as a contribution to a traditional IRA if the recharacterization is made by Oct. 15, 2018. A Roth IRA conversion made on or after Jan. 1, 2018, cannot be recharacterized.”

+ The last word - As with any post, your appropriate comments, and not “praise” that is really only trying to promote your site or product, are always welcomed.  I also want to know if you find any tax law inaccuracies, or typos or other clerical FUs, in the post.


Monday, January 22, 2018


* Over at GO BANKING RATES Michael Keenan gives us the “Average Tax Return and Tax Refund Schedule for 2017”.

One important date to note –
Feb. 27, 2018: If you’re claiming the earned-income tax credit or need to apply for the child tax credit, you’ll have to wait longer. The IRS expects refunds for tax returns claiming those tax credits to be available starting Feb. 27, at the earliest. If you’re claiming either credit, that means the IRS holds back your entire refund — not just the portion connected to the specific tax credit.”

* Staying with that topic – JDSUPRA lists “Six Reasons to Get Your Tax Return Prepared Early”, all good ones.

* Ken Berry (not the actor – showing my age again) states the obvious in “2018 Tax Reform: Pass-Through Income Deduction More Complex Than Thought” at the CPA PRACTICE ADVISOR.   

* Last week’s “Ask The TaxGirl” at FORBES.COM dealt with “Claiming A Tax Refund When You Owe Tax”.

Some good stuff in KPE’s answer (highlights are mine) –

I am going to assume further that you filed your 2016 tax return early based on an estimate or last pay stub because you wanted your refund quickly.

Not only is that a bad idea, it's against the rules: The Internal Revenue Service (IRS) specifically bars tax preparers from e-filing your tax returns without receipt of forms W-2, W-2G and 1099-R. And while there are some tax preparers who will do anything for a dollar, I would advise you to find a tax professional who is willing to explain what can happen to you when you file without the right documentation.”

* And in another “Ask The Taxgirl” post KPE tackles “The $10,000 SALT Cap & Vacation Homes”.

Kelly says that property taxes paid on a personal use vacation home can be included in the $10,000 maximum deduction.

So, it appears you can deduct up to $10,000 in a combination of property taxes and state and local income or sales taxes on Schedule A for 2018 – 2025.  If the property taxes on your primary personal residence are $6,000, and you have a vacation property with property taxes of $3,000, you can deduct up to $1,000 of state and local income or sales taxes to come up with the maximum $10,000.

* Let us make it a TaxGirl “trifecta” with the good news that “Mike 'The Situation' Sorrentino Expected To Plead Guilty To Tax Charges”.  Thankfully the government is spared the cost of a trial.

No surprise about the tax evasion – and getting caught. All these reality tv "celebrities" (including the one in the White House) are merely self-absorbed and self-important idiots with limited intelligence.

* Did you know that if you owe too much money to your Uncle Sam the IRS can revoke your passport, or deny your passport application or renewal?   Also at FORBES.COM, Robert W Wood explains “How Overdue Taxes Can Jeopardize Passports”.

* The TAX FOUNDATION reports on the "Summary of the Latest Federal Income Tax Data, 2017 Update" - “data on individual income taxes for tax year 2015, showing the number of taxpayers, adjusted gross income, and income tax shares by income percentiles.”

Curious about whether the wealthy are paying their “fair share” of taxes?  The summary points out that (highlights are mine) -

The top 1 percent paid a greater share of individual income taxes (39.0 percent) than the bottom 90 percent combined (29.4 percent).”

And -

In 2015, the top 50 percent of all taxpayers paid 97.2 percent of all individual income taxes while the bottom 50 percent paid the remaining 2.8 percent.”


Part I -

The ridiculous Turbo Tax tv ads seem to be saying that taxpayers should not be afraid to use TT software to prepare their tax returns.

This is obviously not true.  Individuals who use a “box” to self-prepare their 1040 need to be afraid that the return was not prepared correctly and that the IRS will charge them penalties and interest when the errors are eventually discovered.

It is difficult to decide whose tv ads are more stupid – Turbo Tax or Henry and Richard.

Part II –

Trumpocracy: The Corruption of the American Republic” is a great new book by a respected Republican that “offers a persuasive and detailed account of how Trump is undermining American institutions, including the presidency itself.”

It is "a must-read for Americans who are in denial about the threat to democracy posed by a president absorbed in narcissism and recklessly indifferent to the institutions and norms of ethics and propriety that have sustained the great American experiment for 2½ centuries.

His attributions are meticulous, his footnotes are extensive, his willingness to call out deviations from his conservative brethren is commendable.

Therein lies the power and credibility of Frum’s conclusions. They are supported by verifiable facts, grounded in historical context, devoid of ideological hue.”


Friday, January 19, 2018

WHAT'S NEW ON THE 2017 NJ-1040

While the actual 2017 NJ-1040 is not yet available at the NJDOT website, the 2017 Instruction Booklet and just about all other 2017 forms and schedules can now be accessed there.

Based on the instructions there appears to be only one change to the composition of the actual NJ-1040 form.  In the section for exemptions a new Line 12 (c) has been added for the new $3,000 Veteran’s Exemption.  The appropriate amount – $3,000 if the taxpayer or a spouse qualifies, or $6,000 if both spouses qualify – is included in the deduction on Line 29 for exemptions.

A taxpayer who is “a veteran honorably discharged or released under honorable circumstances from active duty in the Armed Forces of the United States, a reserve component thereof, or the National Guard of New Jersey in a federal active duty status” by the last day of 2017 is eligible for a $3,000 exemption on his or her NJ state income tax return.  This exemption is in addition to any other exemptions the taxpayer is entitled to claim and is available on both resident and nonresident returns. The exemption can be claimed by both spouses on a joint return if they qualify, but the exemption cannot be claimed for a domestic partner or dependents.

You must provide a copy of Form DD-214, Certificate of Release or Discharge from Active Duty, or other appropriate documentation, such as a Form DD-256 or a driver’s license with veteran status, which is a license which has the word “VETERAN” on it.   the first year you claim the exemption. This form does not need to be provided in subsequent years.  The United States National Archives and Records Administration can assist with obtaining a copy of your DD-214.

You can certify for the exemption in advance by sending a copy of your DD-214 and a Veteran Exemption Submission Form to the Division before you file, which may help process your return faster.

Mail a copy of your DD-214 and the submission form to The New Jersey Division of Taxation, Veteran Exemption, PO Box 440, Trenton, NJ 08646-0440 or fax your DD-214 and the submission form to 609-633-8427.

If you do not pre-certify before you will need include a copy of your DD-214 or other acceptable documentation with the filing of your NJ state return.

Back to the NJ-1040 – the only other change is there is a new fund to which you can contribute a portion of your refund on Line 64 – the New Jersey Yellow Ribbon Fund (Code = 23).    

One thing that I was unsure about prior to seeing the 2017 instructions concerned the “Other Retirement Income Exclusion”.  I was not sure that this was available up to the new increased basic “Retirement Income Exclusion” amounts, or if it remained at the old limits.  The instructions clarify that the increased Retirement Income Exclusion amounts – now $30,000 for Single and Head of Household filers, $40,000 for Married, or “Civil Union” couple, Filing Joint Return filers, and $20,000 for Separate filers, twice what it was on the 2016 NJ-1040 – also apply to the "Other Retirement Income Exclusion"

The introductory letter from NJDOT Acting Director John Ficara in the 2017 instruction booklet says -

The pension and/or other retirement income exclusion amount is being increased over a four-year period. This year, you may be eligible for an exclusion of up to $40,000.”

And the “Worksheet D: Other Retirement Income Exclusion” shows the new increased Retirement Income Exclusion amounts in the calculation.

So even if you have absolutely no pension income, if you, and/or your spouse or civil union partner, were 62 or older on December 31, 2017, your gross income on Line 26 is $100,000 or less, and your total income from wages, self-employment, partnerships, and sub-S corporations is $3,000 or less, you do not have to pay any NJ Gross Income Tax if your NJ income, before deductions, is $30,000, $40,000, or $20,000 or less, depending on your filing status.

No other changes that I can see.  When the actual 2017 NJ-1040 is available I will review it and let you know if there are any more changes.


Thursday, January 18, 2018


Under the GOP Tax Act, effective with tax year 2018 the “Kiddie Tax” is no longer calculated based on the parent’s income, and the income of siblings is also no longer a part of the calculation.

The “old” law added a child’s “excess” net investment to the net taxable income of the parent(s) when calculating the tax, and the income of all dependent children was taken into consideration in the calculation.

I must point out - there is no change to the Kiddie Tax for the 2017 tax return that will be prepared in the next few months.  The 2017 Kiddie Tax is calculated in the same way as the 2016 Kiddie Tax.

And a reminder - the Kiddie Tax applies, in 2017 and 2018, to dependents who are a full-time college student under age 24.

The Earned Income – W-2 income and net earnings from self-employment - of a dependent “child” subject to the Kiddie Tax is taxed at the Single tax rates.  Net unearned income – basically investment income - in excess of $2,100 is taxed using the tax rates for Estates and Trusts.

Here is the new tax rate schedule for 2018 for Estates and Trusts -

If taxable income is = the tax is:

Not over $2,550 = 10%
Over $2,550 but not over $9,150 = $255 plus 24% of the excess over $2,550
Over $9,150 but not over $12,500 = $1,839 plus 35% of the excess over $9,150
Over $12,500 = $3,100.50 plus 37% of the excess over $12,500

While this initially appears to result in higher taxes on the “excess” investment income of dependent children, like what you’re liable to read in the Bible, it ain’t necessarily so.  It depends on the amount of income subject to the kiddie tax and the parents' tax bracket.

This change does, however, somewhat simplify the calculation of the Kiddie Tax, which, as a tax preparer, has always been a bit of a PITA in the past, especially when the income of several dependent children was involved.


Wednesday, January 17, 2018


Soon you will be receiving the information forms you will need to prepare your 2017 tax returns in the mail – W-2s, 1099s, 1098s, K-1s, etc.   Here is a list of the forms you could be receiving –

Income Related Documents:

•  Form W-2 = wage and salary income
•  Form W-2G = gambling winnings
•  Form 1099-A = foreclosure of a home
•  Form 1099-B = sales of stock, bonds, or other investments
•  Form 1099-C = canceled debt
•  Form 1099-DIV = dividends
•  Form 1099-G = state tax refunds and unemployment compensation
•  Form 1099-INT = interest income
•  Form 1099-K = business or rental income processed by third party networks
•  Form 1099-LTC = benefits received from a long-term care policy
•  Form 1099-MISC = self-employment and other various types of income
•  Form 1099-OID = original issue discount on bonds
•  Form 1099-PATR = patronage dividends)
•  Form 1099-Q = distributions from an education savings plan
•  Form 1099-QA = distributions from an ABLE account
•  Form 1099-R = distributions from retirement savings plans
•  Form 1099-S = proceeds from the sale of real estate
•  Form 1099-SA = distributions from health savings accounts
•  Form SSA-1099 = Social Security benefits
•  Form RRB-1099 = Railroad retirement benefits
•  Schedule K-1= income from partnerships, S corporations, estates, or trusts  

Deduction Related Documents:

•  Form 1097-BTC = bond tax credit
•  Form 1098 = mortgage interest
•  Form 1098-C = charitable contribution of vehicles
•  Form 1098-E = student loan interest)
•  Form 1098-MA = homeowner mortgage payments
•  Form 1098-T = tuition for higher education

Medical Coverage Documents:

•  Form 1095-A = Health Insurance Marketplace Statement
•  Form 1095-B = Health Coverage
•  Form 1095-C = Employer-Provided Health Insurance Offer and Coverage 

The Form 1095-B and 1095-C are NOT necessary to prepare your returns - so do not hold up doing so, or giving your “stuff” to your tax preparer, until these arrive.  These forms may not arrive in the mail until mid-March.  However, Form 1095-A is most definitely needed to prepare your return.

Most information returns are required to be delivered to you by January 31st.  However, Form 1099-B, Form 1099-MISC reporting attorney fees and “substitute payments”, and Form 1099-S are required to be delivered by February 15th.  The deadline for filing partnership returns, and corresponding K-1s, is now March 15th, but the partnership may request an automatic extension until September 15th.

Brokerage houses (Merrill Lynch, Wells Fargo, UBS, etc) will usually provide a “Consolidated 1099 Statement” that combines the information of 1099-DIV, 1099-INT, 1099-OID, and 1099-B.  There is an excellent chance that the brokerage will issue at least one, if not two, corrected statements.  The final corrected 1099 may not arrive until mid-March.

Many states no longer send out Form 1099-Gs for state tax refunds and unemployment compensation.  You will need to go to the website of your state's tax department or unemployment agency to download these forms.  State tax refunds are not necessarily taxable, but unemployment compensation is.

As you receive information returns you should check the amounts reported on the forms against your own records.  And it is important to verify that the Social Security numbers on all forms are correct.  If you discover an error, or something you don’t understand, contact the employer or financial institution for an explanation or a corrected return.

Some information returns may come attached to other documents. Check the contents of each envelope carefully. Your Form 1098 for mortgage interest may arrive attached to the January or February monthly mortgage statement. Some year-end dividend checks have a Form 1099-DIV attached. Don’t separate the check and throw out the 1099-DIV thinking it is a stub. And check 1099-DIVs you receive to see if there is a check attached. I can’t tell you how many times I have found checks attached to 1099s given to me by clients. 

Remember – you are required to report ALL INCOME, whether or not you receive a Form 1099 or other information return.  And just because you have not received a Form 1099 does not mean that one was not sent to the IRS.