Tax season is once again knocking at the door, and it rarely arrives alone—usually bringing a stack of forms and a handful of various questions.
While tax prep can feel overwhelming, each document you receive—from income sources, investments, or business entities—represents another piece of the overall picture of your financial year. To help simplify the process, we’ve summarized some of the most common tax forms you may encounter and what they’re used for.
We’ve also included an essential IRS distribution code change you should be aware of.
Let’s get started!
Understanding Common Tax Forms in 2026
Let’s break down some of the most frequently received tax documents and why they may apply to you. In today’s blog, we’ll cover Form 5498, Form 1099 and 1099-R, as well as some essential code changes.
Form 5498
Form 5498 reports contributions made to a Traditional IRA or Roth IRA during the previous year.
This includes regular cash contributions, rollover contributions (which are typically not taxable), Roth conversions, and any recharacterized contributions. The form also lists basic account details, such as the fair market value of the IRA or Roth IRA as of December 31st.
One key thing to know: Form 5498 is generally for informational purposes only and does not need to be filed with your tax return.
Form 1099
Form 1099 is the most common document used to report “non-wage” income.
There are several types of 1099 forms, each identified by a different suffix (such as 1099-B, 1099-DIV, 1099-INT, or 1099-NEC).
Thankfully, our primary custodian, Raymond James, combines all applicable 1099 forms into a single Consolidated 1099. Clients with taxable brokerage accounts (non-IRA accounts) will receive this document, which summarizes dividends, interest, capital gains or losses, and other taxable activity from the prior year.
Important timing note: The Consolidated 1099 for your taxable investment account at Master’s is often one of the final tax documents issued, typically arriving in March. Most other tax forms are sent earlier, usually in late January or February.
Form 1099-R
For retired clients, Form 1099-R is one of the most received tax forms.
This form is issued if you took taxable or charitable distributions from an IRA, annuity, or pension. It reports the total distribution amount, the taxable portion, and any federal or state tax withholding that occurred.
Two planning strategies that generate a 1099-R outside of standard IRA withdrawals include:
- Roth IRA Conversions: Moving pre-tax funds from a Traditional IRA into a Roth IRA creates a taxable event, which must be reported on your tax return and will appear on Form 1099-R.
- Qualified Charitable Distributions (QCDs): Although QCDs are not subject to federal income tax, they are still reported on Form 1099-R. To ensure proper tax treatment, your tax preparer will need donation receipts from the charities confirming the distributions were charitable.
Important 2025 IRS Distribution Code Changes
In prior years, custodians (such as Raymond James) did not distinguish between taxable and charitable IRA distributions on Form 1099-R. Clients would receive a single 1099-R showing total annual distributions, and charitable gift receipts were then used by the tax preparer to determine what portion was charitable versus taxable.
Beginning this tax year, Raymond James will implement an IRS reporting change by issuing separate 1099-R forms for taxable and charitable distributions. Standard taxable distributions will have a “7” in the distribution code box, while charitable distributions will be reported with a “Y” code.
It is important to provide your tax preparer with both 1099-R forms, along with the charitable gift receipts you received during the prior year, to ensure proper tax reporting.
Need Assistance? We’re Happy to Help
Tax season can be stressful, and tracking down every required form isn’t always straightforward. While we do not provide tax advice, we are more than happy to help answer questions as you gather the necessary documents for your accounts with us.
If you need clarification or assistance, please don’t hesitate to reach out — our team is here to help.
