The Important 2015 Form W-2 and Form 1099 Changes

Posted by Real Search

Medicaid Waiver Payments Certain Medicaid waiver payments have been termed as excludable from the income for federal income tax purposes as a dificulty for care payments.

Virtual Currency

The market value of virtual currency such as Bitcoin being paid as wages is now a subject to federal income tax withholding, FICA tax, and Federal Unemployment Tax Act (FUTA) tax. It is mandatory for employees to report it on Form W-2.(For more see: Beware: IRS considers Bitcoin as “property” NOT “currency”! (Hint: Have a TIN Matching API))

Form W-2G

The Form W-2G reports income and withholdings related to gambling. In 2013 and 2014, the text in the PAYER’S name and address block was condensed to fit in one print row. For 2015, the form will match the IRS version and expand the text to fit in two print rows.

The Form 1099 Changes

Form 1099-B
Form 1099-B is issued by a broker or barter exchange that summarizes the proceeds of transactions.
Changes:
Now, for a sale of debt instrument that is a wash sale and has accrued market discount, enter the code “W” in the box 1f and the amount of wash sale loss disallowed in the box 1g.

Form 1099-K
The Form 1099-K is given to those merchants who accept payment card transactions or third party network transactions.
Changes:
Completion of box 1b, Card Not Present transactions, is now mandatory for 2015 as it was optional on the 2014 form

Form 1099-R
The Form 1099-R is used to show distribution from retirement accounts like IRAs.
Changes:
Beginning in 2014, an FFI with a chapter 4 requirement to report a cash value insurance contract or annuity contract that is a U.S. account held by a specified U.S. person with the FFI may satisfy this requirement by electing to report the account on Form 1099-R.

Form 1099-INT
Form 1099-INT is used to report interest income from banks and other financial institutions.
Changes:
The Box 13 has been added to report bond premium on tax-exempt bonds. All later boxes were renumbered.
A new checkbox is also added to this form to identify a foreign financial institution filing this form to satisfy its chapter 4 reporting requirement.

Form 1099-DIV
Form 1099-DIV is issued to those who have received dividends from stocks or partnerships.
Changes:
A new checkbox has been added to this form to identify a foreign financial institution (FFI) to satisfy its chapter 4 reporting requirements.

Form 1099-MISC
The Form 1099-MISC, the most important of the Forms 1099, is used to report the total paid to a single person or an entity during a tax year for the services provided.
Changes:
A new checkbox was added to the Form 1099-MISC to identify a foreign financial institution (FFI) filing this form to satisfy its chapter 4 reporting requirement.
Certain Medicaid Waiver Payments may be excludable from the income as a dificulty for care payments.

Form 1099-OID
The Form 1099-OID is issued on the purchase of a bond or note for an amount that is less than face value. An OID (Original Issue Discount) is the excess of a bond or note’s stated redemption price over its issue price.
Changes:
A new checkbox was added to Form 1099-OID to identify a foreign financial institution (FFI) filing this form to satisfy its chapter 4 reporting requirement.

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