Investors should keep an eye out for some extra tax forms each year. When you deal with interest income, form 1099-INT is the form you need to get your tax return done.
This form isn’t limited to investors either. Anyone earning interest on savings accounts, money market accounts, CDs, or bonds is a potential candidate.
However, it won’t report earnings from mutual funds invested in bonds. Mutual fund earnings are reported on 1099-DIV for dividends and distributions.
This can be confusing without some good tax software or an accountant to help sort it out. It’s also why TurboTax comes in handy when I do my tax returns every year because it sorts out all the tax forms for me. Continue Reading…
Dividends tend to get lumped as one single form of investment income. But the IRS doesn’t see it that way, dividing the tax on dividends into two types: ordinary and qualified dividends. 
The IRS has different tax forms for every type of income imaginable. With investing, that can quickly get complicated and lead to mistakes. At the very least, you should have a basic idea of what the tax forms do and which forms to expect each year. That alone will give you a better picture of your tax costs, allowing you to