As we embark on tax season, I also wanted to share an overview of the most common tax forms that I would expect clients to receive and where you can find these documents. Hopefully this serves as a helpful reference as you’re uploading documents for your accountant or making sure that you’ve got all the necessary forms as you begin to prepare your tax return.
Equity
Form 3921 – Reports the exercise of an Incentive Stock Option (ISO). Can be found on Carta or Shareworks.
Form 3922 – Reports the purchase of shares acquired through an Employee Stock Purchase Plan (ESPP). Can be found on the platform your company shares are held.
1099-B and Supplemental Forms – Reports the gain or loss from the sale of stock.
For private companies who ran a tender offer last year, this will likely be issued from Nasdaq Private Markets or the company who facilitated the sale or buyback for your company. FYI – If you sold unexercised options, this income is reported on your W-2.
For public companies, this will be issued by the institution where your company stock plan is held. The supplemental tax form includes your adjusted cost basis, which is important for individuals who sold shares purchased at a discounted price via an ESPP, RSUs, or stock options. Not all institutions issue supplemental tax forms (ex. Shareworks), so downloading the full account summary report will include the details of your historical vesting and purchases of shares.
Retirement
1099-R – Backdoor Roth IRA contributions, as well as After-Tax 401k contributions with In-Plan Roth conversions (i.e. Mega Backdoor Roth strategy).
Note: If you rolled over or consolidated an old employer’s 401k into your current 401k or an Individual Retirement Account (IRA), this will produce a 1099-R from the financial institution where your 401k was previously held.
Other Tax Documents
Form 1099-SA – For individuals who distributed funds from their Health Savings Account (HSA), this form is issued by the HSA custodian to report distributions and confirm if they were qualified medical expenses.
Form 1098 – This form reports mortgage interest that you may be eligible to deduct.
1099-INT – This reports the interest earned on your savings account or through the sale of treasury bills / redemption of savings bonds.
Donor Advised Fund or 529 Education Savings Accounts – While there isn’t a standard tax form, you’ll want to share the total contributions / donations made last year with your accountant to include on your tax return.
K-1 – This form reports your proportional share of income / losses for any partnership interests or trusts that you are a beneficiary.
Estimated Tax Payments – If you made any tax payments to the IRS or your state’s department of revenue, include receipt of these payments with your accountant.
1099-NEC – For anyone who received self-employment income for consulting services, this form will be issued from the organization(s) that provided services that summarizes the revenue you received for these services.
Hopefully referencing this post makes this tax season slightly less taxing than prior years. 🙂