What Tax Documents Should You Look Out for This Tax Season? (Plus, Why Business Owners Need to Pay Quarterly)

Tax season can be overwhelming, but it doesn’t have to be. Whether you're a W-2 employee, a freelancer, or a small business owner in Columbus, OH, understanding what documents you need (and when you need them) can make all the difference in reducing stress and avoiding costly mistakes. At Mz Bee Financial Services, we help our clients stay organized, prepared, and empowered year-round. Let’s break it down.

Common Tax Documents You Should Expect

1. W-2 (Wage and Tax Statement): If you're employed, your employer is required to send you this document by January 31st. It outlines how much you earned and how much was withheld in taxes throughout the year.

2. 1099 Forms: There are many types of 1099s, but the most common are:

• 1099-NEC: For independent contractors and freelancers earning over $600 from a client.

• 1099-MISC: For miscellaneous income like rent, prizes, or legal services.

• 1099-INT or 1099-DIV: Reports income from interest or dividends.

3. 1098 Forms: These report certain types of payments you made during the year, such as:

• 1098: Mortgage interest.

• 1098-T: Tuition payments, often used for education credits.

• 1098-E: Student loan interest.

4. Schedule K-1: Issued to partners in a partnership or members of an S-corp, a K-1 details your share of the company’s income, deductions, and credits.

5. State & Local Tax Documents (Ohio-specific): Ohio residents should also keep an eye out for:

• Ohio IT 1040 Forms

• Columbus municipal tax documents, especially if you live or work in a city with a local income tax requirement.

6. Other Key Documents:

• Form 1095-A, B, or C: For health insurance coverage.

• Charitable contributions receipts

• Business expense records (if self-employed)

Why Business Owners Must Pay Quarterly Taxes

If you're a self-employed individual, LLC, or small business owner, you don’t have the luxury of taxes being withheld from your paycheck. Instead, the IRS expects you to make estimated quarterly tax payments. These are due in April, June, September, and January.

Here's why quarterly tax payments matter:

• Avoid Penalties: The IRS can hit you with penalties for underpayment or late payment.

• Better Cash Flow Management: Spreading your tax liability across the year helps you avoid large lump sum payments at year-end.

• Stay Financially Organized: It keeps you disciplined about tracking income, expenses, and savings regularly.

• Prevents Surprises: No one wants to be blindsided by a massive tax bill in April.

Final Thoughts

Whether you’re an employee waiting for your W-2 or a Columbus-based entrepreneur collecting 1099s, staying ahead of your tax paperwork is key. Need help organizing, filing, or planning your taxes? Let Mz Bee Financial Services guide you through it all with expert care, personalized service, and the financial clarity you deserve.

📞 Ready to get a jumpstart on tax season? Schedule your consultation with Mz Bee today at mzbee-fs.com!