What are tax forms Part 2 Taxes and tax forms Financial Literacy Khan Academy

when they are filing their taxes

In this video, we’re going to look at some forms that are very useful when you are filing your income taxes.

If you work for someone as an employee, you will get a W-2 form. This form provides a nice summary of what you are paid and what was withheld for federal income tax, Social Security, and state taxes. For most people, this is all the information you will need to fill out your taxes.

If you have income above and beyond your wages, you will get a 1099 form. This form can be useful if you are an independent contractor or have income from interest or dividends.

The 1098 form is used to document interest you have paid to other parties, which may be tax deductible. This form is most relevant for mortgage interest payments on your actual house. It can also be used to see if you qualify for the mortgage interest deduction.