Asked by Blair Harrell on Jun 17, 2024
Verified
Interest payers (banks,savings and loans,insurance companies,etc. ) report interest earnings to taxpayers on a:
A) Form W-2-INT.
B) Form 1099-INT.
C) Form 1099-INC.
D) Form 4070.
Interest Payers
Individuals or entities that owe interest on loans or debt instruments to other parties.
Form 1099-INT
A tax form used to report interest income from banks, brokerage firms, and other financial institutions during the tax year.
- Gain familiarity with the obligations employees and employers have concerning tax documentation.
Verified Answer
PH
Peyton HolstonJun 21, 2024
Final Answer :
B
Explanation :
Interest payers report interest earnings to taxpayers using Form 1099-INT, which shows the total amount of interest earned during the tax year. Form W-2 is used to report wages, salaries, and tips earned by an employee, Form 1099-INC does not exist, and Form 4070 is used to report tips received by an employee.
Learning Objectives
- Gain familiarity with the obligations employees and employers have concerning tax documentation.
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