Newsletter

2016 VSECU Tax Forms

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Most 2016 VSECU tax forms will be mailed to members in January. If you are enrolled in eStatements, you will be sent an email notifying you that your electronic tax form is available and can be accessed through your Online Banking account (under the ‘Statements’ tab). If you are receiving monthly paper statements, your tax forms will be sent to the address we have on file. For further details regarding 2016 VSECU tax forms, see the information below:

NOTE: These tax forms are filed with the IRS and may be used for other reporting purposes in other circumstances. The list below describes only how VSECU uses the forms to report to you.

A note regarding prior year mortgage payment or deposit account reversals:

A prior year reversal is a transaction that was processed in 2016 and needs to be corrected in 2017. Prior year reversals effect tax reporting.

1098 | Mortgage Interest Statement

Form 1098 reports mortgage interest you pay to the credit union. Financial institutions are required to send one 1098 for each mortgage loan for which $600 or more was paid in interest during the tax year (including all home equity loans and lines of credit). We send form 1098 to all members who have a mortgage loan with us.

Points paid on a refinance will not show on this form. Only points attributable to a purchase of a home are reportable. Seek the advice of a tax professional to determine if points paid on a refinance are deductible. Points paid on a refinance show on your settlement statement.

One form 1098 is sent per social security number to the primary account holder.

VSECU does not send form 1098 to members with business real estate loans.

1099-INT | Interest Income

Form 1099-INT reports interest earned on deposit accounts and savings bonds, excluding IRA dividends. 1099-INT forms are only sent out if the interest earnings exceed $10 for the tax year.

VSECU does not send form 1099 to businesses that have deposit accounts and report income under a business tax identification number.

1099-A | Foreclosure/Repossession

Form 1099-A reports certain losses associated with a foreclosure.

1099-C | Cancellations of Debt

Form 1099-C reports certain losses and charge offs.

1099-MISC | Miscellaneous Income

Form 1099-MISC reports amounts VSECU paid to outside contractors for work done and for some awards exceeding $600.

Examples include amounts paid to appraisers and closing attorneys for their services, and amounts awarded by VSECU for the student LIFT program.

1099-Q | Qualified Education

Form 1099-Q shows all distributions from Coverdell Educational IRA’s.

1099-R | Regular & Premature Distributions

Form 1099-R shows all IRA distributions, including regular and premature distributions.

1099-S | Real Estate Transactions

Form 1099-S reports proceeds from the sale of real estate.

5498 | IRA Contributions

Form 5498 reports contributions to IRA’s and reports the fair market value as of the end of the year. You have until April 15 to contribute to a traditional IRA for tax year 2016, so you will not receive this form until May.

5498-ESA | Coverdell ESA and Rollover Contributions

Form 5498-ESA reports contributions and rollovers to Coverdell IRA’s. You have until April 15 to contribute to a Coverdell IRA, so you will not receive this form until May.

1042-S | Foreign Person’s U.S. Source Income

Form 1042-S reports amounts that are paid to foreign persons (such as interest or dividends) and are subject to withholding, even if no amount is deducted and withheld from the payment.

W-2 | Wages Earned

Form W-2 reports earnings to employees.

IRA Annual Statements

IRA Annual Statements are not technically a tax form. Your IRA statement reports fair market value and includes a simple insert regarding tax withholding and required minimum distributions (RMDs).

Other Resources:

Internal Revenue Service
Vermont Department of Taxes
Information about IRAs
MEMBERS Financial Services