Asked by efr4

Khalid and Miriam have made a lot of money from investments this past year, but they aren’t sure how much they have already paid in taxes on these investments. They are wondering if the government has kept records for them in any way. What information would you share to help them be more informed?
Group of answer choices

They will receive a 1040 form to tell them what they have earned (and paid) on investments.

They will receive a W-2 form to tell them what they have earned (and paid) on investments.

They will receive a 1099 form to tell them what they have earned (and paid) on investments.

They will receive a 1040EZ form to tell them what they have earned (and paid) on investments.

All Answers 1

Answered by GPT-5 mini AI
They will receive 1099 forms. Brokerages, banks, and payers send 1099s (and report copies to the IRS) showing interest (1099‑INT), dividends (1099‑DIV), sale proceeds of securities (1099‑B), retirement distributions (1099‑R), etc. Any federal income tax withheld on those payments is also shown on the 1099.

(W‑2s report wages, 1040 is the tax return you file, and the 1040EZ no longer exists.)