11 Tax Forms Retirees Must Understand Before Filing a Return

Filing taxes as a retiree can feel overwhelming, but understanding key tax forms is crucial to managing finances effectively.

Whether you're drawing Social Security, working part time, or living off investment income, knowing which forms to look out for can help you stay organized and compliant.

With proper planning for retirement, you can avoid unnecessary stress and keep more of your hard-earned money. Here's a guide to the 11 tax forms retirees need to understand before filing a return.

Even in retirement, you may take on part-time work and earn wages to supplement your income. If so, your employer will issue a W-2 form detailing your total income and the taxes withheld on your behalf.

This form is an essential tool for filing an accurate tax return.

If you're still paying a mortgage in retirement, Form 1098 — otherwise known as the Mortgage Interest Statement — is important.

This form reports the amount of mortgage interest you paid over the year, which may be tax-deductible if you itemize deductions.

By using Form 1098, retirees can potentially lower taxable income, providing more breathing room for other financial priorities.

Retirees who do freelance or contract work will receive a Form 1099-NEC instead of a W-2. This form reports self-employment income, which is subject to income taxes and self-employment taxes.

It's important to track business expenses throughout the year to claim deductions that can offset taxable income.

If you've withdrawn money from a 401(k) or IRA, you'll receive a Form 1099-R. This form details the amount of your distribution and whether taxes were withheld.

You might also receive this form if you converted money to a Roth IRA.

If you're retired but not yet eligible for Medicare, Form 1095-A is important. It provides information on the health insurance coverage you received through a health insurance exchange, commonly referred to as a “marketplace.”

The form will also note whether you received advanced payment of a premium tax credit.

Financial institutions issue Form 1099-INT to report interest earned on savings accounts, CDs, and other similar savings vehicles.

While the interest may seem small, it’s still taxable and needs to be reported.

If you own stocks, mutual funds, or ETFs in a taxable account, you’ll receive Form 1099-DIV to report dividend income.

Dividends are taxable in the year they’re received, even if the dividends are reinvested.

When selling stocks, bonds, or other securities, your brokerage will issue Form 1099-B. This form reports your gains and losses, which are used to calculate your taxable income.

Retirees should keep track of the cost basis of their investments to minimize capital gains taxes.

Some retirees choose to return to school. If that’s you and you’ve paid interest on a qualified student loan, Form 1098-E will report the amount.

This interest may be deductible, offering potential tax savings for those who pursue a higher education.

The Social Security Administration issues Form SSA-1099, which details the benefits you received during the year.

Depending on your total income, up to 85% of your Social Security benefits may be taxable. Contrary to a common misunderstanding, this does not mean you will lose 85% of your benefit to taxes.

If you earned rental income, prize money, or other non-employment income, you might receive Form 1099-MISC.

This form ensures retirees report all miscellaneous earnings, which are subject to regular income tax.

Tax season doesn’t have to be stressful if you’re equipped with the right knowledge. By understanding the key tax forms on this list, retirees can simplify the filing process, avoid making mistakes, and even uncover opportunities to save money.

Take the time to assess where you stand financially and make the necessary preparations to stop wasting money during tax season.