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Q: Tax forms have started rolling in and my mailbox looks like a can of alphabet soup exploded in it! What do I need and where do I start?

A: This is a tough time of year for people who don’t like paper. Starting at the end of January and continuing through March, taxpayers start drowning in paper. Sorting out what’s important and finding a place to store it is a big challenge, and it becomes harder if you don’t know what’s what. Fortunately, it’s easier to tell these forms apart than you might think. There are only a few types of forms you’ll need to deal with, and most of them don’t even need paper. Here are the four most common tax forms you’ll see and what to do with them!

1.) W-2
This is the most common informational form you’ll receive.It’s a statement from your employer that contains your yearly wages, how much tax you’ve had withheld and how much you’ve paid (pre-tax) for things like health care premiums. If you have one job, this may be the only major tax form you get.

It’s also one of the most important forms. You’ll want to keep it with other tax documents until it’s time to file your taxes. This information – your yearly earnings and the amount of tax you’ve had withheld – are the most important factors for determining what your tax bill will be (or how big a refund you’ll get).

2.) 1099
This is a series of forms identifying income from sources other than a contract job. Most common is the 1099-INT, which lists interest income. You may get one of these from any financial institution where you have an account.

If you freelance or work as a contractor, you’ll probably receive a 1099-MISC. If you received unemployment or another source of government income, you’ll get a 1099-G. If you had debt canceled this year, you’ll get a 1099-C. There are a few other kinds of 1099 forms, but they all do basically the same thing.

You’ll need to hold on to these forms, too. They document income that you haven’t yet paid any taxes on. You’ll need the amounts on these forms when you get ready to file.

3.) 1095
These are relatively new forms that deal with health insurance. Form 1095-A is a statement about insurance purchased through a marketplace exchange. 1095-B is for private health insurance. 1095-C is for employer-sponsored health care coverage.

These forms are important if you get a health insurance subsidy through the Affordable Care Act. If not, you can go ahead and put this form into long-term storage. You’ll be asked when you file if you had health insurance all 12 months of the year. The IRS receives a copy of this form to check your work, so you’ll only need it if issues come up regarding your coverage.

4.) 1098
Two forms, the 1098 and the 1098-T, report tax deductible expenses. The 1098 form lists mortgage interest and points on your primary residence, while the 1098-T itemizes tuition and other expenses paid to an institution of higher learning. The 1098-T is used in a variety of places, including claiming the Lifetime Learning Credit and the Hope Credit.

Unfortunately, in order to take advantage of deductions relating to mortgage expenses, you’ll need to itemize your deductions. Claiming the deductions listed on the 1098 requires you to forgo the standard deduction, which for most people turns out to be a bad idea. Unless you have a host of other deductions, or you bought or refinanced your home this year, claiming the standard deduction and filing the 1098 away for later will serve you best.

The bad news is you can’t file your taxes and be rid of the whole mess until you get all of your forms together. You’ll need to keep any W-2 forms, 1099 forms and your 1098-T form together until all of them arrive. Get a manila folder or a document envelope to keep them all in the same place. Keep that folder somewhere safe, and as soon as possible, file your taxes so you can put it into storage. Keep your returns for at least 3 years after you file. A paper copy of last year’s tax return in your filing cabinet can make a world of difference!

Good news! Advancial members receive a discount on TurboTax. File your taxes online and get your biggest refund, guaranteed.

Perhaps you may have had good credit in the past, but are now experiencing a much lower credit score due to choices or life circumstances. Or, you may be building your credit for the first time as a young adult or as a newly single adult. Whatever the reason, you can rely on Advancial to provide you with products that can help reestablish your payment history.

Here are a few tips to help improve your credit rating:

Savings Secured Loans – A savings secured loan allows you to borrow money and build your credit without an extensive credit history. You may use your own money as collateral from your saving account or a Certificate of Deposit. If you are establishing or building credit, sometimes using a family member’s collateral may be a better option for you to borrow the money at a more affordable rate. Once the loan is paid off, the collateral is released.

Savings Secured credit card –Enjoy the benefits of a credit card even if you have less-than-perfect credit. Secured with your Advancial account deposits, you can qualify for limits of $500 to $3,000. Just use your card responsibly and, since the card is reported to the three major credit bureaus, you’ll be able to improve your credit score in no time.

Rent payment reporting – Make sure your rent payments are tracked and reported to Experian RentBureau, the only major credit reporting agency to include on-time rental payment data on its reports. Use of timely rent payments to build and boost credit scores is relatively new, and many people don’t know about it yet.

If you’re already leasing a home, or looking to find a suitable property to lease, ask your management company if your payments are reported to Experian RentBureau. And if you pay rent to an individual rather than a management company, you can still take advantage of a service that collects your rent payments electronically, pays your landlord and reports to Experian. It may be possible to include your excellent rent payment history, too.

Here’s the important thing to remember – to use your timely rent payment history for building or rebuilding your credit, you’ll need to be proactive about it. There are a handful of services that will collect, disburse and report for you, but of course, you’ll pay a small fee for the service each month. You must contact them to pay the small fee, but it can be a valuable investment in building your credit score, along with credit builder loans and secured credit cards from Advancial.

Planning for a good credit rating is just as important as planning for major purchases and life transitions. The importance of a good credit rating means it can’t be an afterthought and it shouldn’t be left to chance.

You’ve made the decision to become a credit union member, and that’s a step in the right direction! Give us a call at 800.322.2709 to apply for one of these products today.


*Advancial is not a credit counseling agency, credit repair organization or similar service provider.

Credit cards are an important financial tool, but they need to be used responsibly.

Here’s how to know you’re okay:

1. You can easily pay more than just the minimum payment each month.
2. You don’t rely on your credit card for everyday purchases.
3. You are using less than 30% of your credit limit.
4. You never take out cash advances.
5. You use it mostly for large, necessary expenses.
6. You read all the fine print in every letter you receive from your credit card company.

Ready for a better credit card?

The Visa Rewards Plus credit card is a dream come true. There's no annual fee*, no balance transfer fee and you'll earn unlimited reward points on purchases. Best of all, we offer 0% introductory APR for the first 12 months, after that your APR will be 8.90%-14.90% based on credit worthiness. Apply today!

Need to build your credit?

Advancial offers a Savings Secured Visa® credit card to help you grow your credit responsibly. Secured with your Advancial account deposits, you can qualify for limits of $500 to $3,000. There's no annual fee**, you'll earn reward points on purchases and enjoy 0% introductory APR for the first 12 months, after that your APR will be 16.90%. Call 800.322.2709 to get started today!

Credit unions are an important part of our community. The members of your credit union are your friends, family, co-workers and neighbors. They care enough about where they live to invest their money locally by keeping savings accounts and their other banking matters “in the family.”

The strength and stability of a credit union comes from its members. The more members a credit union has, the more value it can provide to the membership as a whole – especially when the members do all or most of their banking with the cooperative that they collectively own. As a credit union grows, it can offer better services at more competitive rates and with fewer or lower fees. That’s the power of community support.

To keep up in a crowded marketplace, credit unions need to grow. Corporate financial institutions do this by selling stock in their company. But they are less accountable to their customers and more accountable to investors and paid boards of directors who probably live far away from the institution’s community. The constant drive to appease shareholders often propels the bank’s leadership to make decisions that may be immediately advantageous, but highly detrimental for the long term. Contrast this with credit unions, which are wholly owned by their members, who receive their shares of the revenue that is generated through better rates, lower fees, investments in technology and more. But a credit union needs to attract new members to continue the growth that makes all that possible.

When the credit union grows, the whole community benefits from that growth as well. We’re always looking to offer more and better services to our members. We want to continue to be the financial institution of choice for the community.

As a member, you know the benefits of doing business with the credit union.

• Free checking and ATMs nationwide
• Better rates of return on deposits
• Low-cost financing for autos and mortgages
• Low rate credit card with rewards
• Youth and teen accounts
• Unbeatable member service

Share the wealth and benefits of Advancial with your friends and family today!

It can be difficult to tell the difference between a credit union and a bank. There are a lot of similarities between the two; they both offer checking accounts, credit cards, auto loans and other financial products. However, there are a few distinct differences that set credit unions apart.

Credit unions are member owned, not-for-profit companies. That means you get a lot of great, free benefits – like lower loan rates, high deposit rates and little-to-no service fees. Once you have an account, you become a member and a part owner in the company. That’s why we say our accounts earn dividends, not interest. Banks pay profits to their stockholders or owners. That means you get stuck with higher interest rates and less flexible loans.

Credit union memberships are based on commonality, such as a specific community, organization or place of employment. We’ve created a warm, family environment, so any immediate family member is also eligible to join. You’ll get more value and a more affordable banking experience with Advancial.