Tax Tips: What to Do With Your W-2


In the next few weeks you will be receiving the “information returns” needed to prepare your 2009 Form 1040. Employers, banks, brokers, mortgage companies, mutual funds, etc., are required to mail out W-2s, most 1099s and 1098s by Feb. 1.

Some forms, including the 1099-B and 1099-S, do not have to be in the mail until Feb. 16. This later deadline also applies to “Consolidated Reporting Statements” issued by brokerage houses that include the information for all types of Form 1099 on one statement.

When you receive your W-2s and 1099s check the figures on these forms against your own records to make sure the amounts reported are correct. Also verify that the Social Security numbers on the forms are correct. If you find an error or discrepancy, contact the appropriate employer or financial institution for an explanation or a corrected copy.

A bank may issue one Form 1099-INT for all the accounts — savings, money market and CDs — that belong to the same name and Social Security number. There may be six or seven accounts listed on a 1099-INT. It is important to verify each account listed on the form to make sure all of them belong to you.

A few years ago one of my clients received a 1099-INT for multiple accounts that included $300+ in interest from someone else’s account in the listing! Had he not carefully checked the form he would have paid close to $100 in unnecessary federal and state income tax!

—For the best rates on loans, bank accounts and credit cards, enter your ZIP code at

Show Comments

Back to Top