W-2 Tax Form Alternatives
The Internal Revenue Service (IRS) provides various forms to assist taxpayers in filing their taxes correctly. Although the W-2 form is the most commonly used form for reporting wages and deductions, many other forms can be used in place of the W-2. Depending on the taxpayer’s individual circumstances, the IRS offers alternatives that may be better suited to their needs.
One such form is the 1099-MISC. This template reports payouts made to individuals or unincorporated businesses and is an alternative to the W-2 form. It is used to report payments made for services, rent, royalties, and other types of income, as well as any taxes withheld. This copy is typically used when the payment was made to someone who is not an employee, such as a freelancer, contractor, or independent contractor.
- 1099-DIV is another alternative to the W-2 template. This form is aimed at reporting dividends and other distributions from investments. This form is commonly used by taxpayers who receive income from investments such as stocks, mutual funds, and bonds. The 1099-DIV form is also used to report capital gains distributions.
- 1099-INT is made to report interest income. This document reports interest earned on savings accounts, certificates of deposit, and other types of investments. This form also reports any taxes withheld from the interest income.
- 1099-G reports state or local income tax refunds, unemployment compensation, and other government payments. This form is typically used by taxpayers who have received payouts from the government such as unemployment benefits, state or local tax refunds, or other types of government payouts.
- 1098-T is made to report tuition payments and educational expenses. This form is common for students who have paid tuition or other educational expenses. The 1098-T form also reports any scholarships, grants, or other academic assistance received.
- 1099-R reports distributions from retirement plans, annuities, pensions, profit-sharing plans, and IRAs. This form reports any withdrawals, rollovers, or other distributions from these plans.
- 1099-S is used to report certain real estate transactions. This document is aimed at reporting the sale or exchange of real estates, such as a house, condo, land, or other real property.
- 1099-K reports income document payouts made through third-party networks. This form is typically used by taxpayers who receive payments through online payment processors such as PayPal, Venmo, or other online payment networks.