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Question 14

A common filing mistake is forgetting to report all income sources. Banks send 1099-INT for interest, brokers send 1099-B for sales, and businesses issue 1099-NEC for nonemployee compensation. The IRS receives copies of these forms too — a missing 1099 on your return may trigger a notice. Keeping a simple list of expected forms during tax prep reduces the chance that an income source slips through. This question asks which action helps avoid the “missing form” problem.

Which practice best reduces the chance of missing an income form when filing?

Did You Also Know...

By Wise Wallet

Some loan products can negatively amortize, meaning the outstanding balance grows if payments don’t cover the accruing interest.