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If you’re home shopping, you may be looking at duplexes. These properties are typically a single structure with two separate units. At face value, buying a duplex might seem like a BOGO (buy one, get one free) deal, but it isn’t as simple as purchasing two homes for the price of one.

It’s important to analyze the pros and cons of buying a duplex before you start bidding or sign a contract. In this guide, you’ll learn about the following topics:

Defining ‘Duplex’

A duplex is composed of two living units on top of each other or side by side.

Duplexes have separate entrances for each occupant. That means single-family homes that have been subdivided typically do not count as duplexes.

For a side-by-side duplex, both entrances are likely on the street. If a duplex is stacked, the second-floor occupant might share an exterior entrance with the first-floor occupant, and then have an entrance to themselves upstairs.

In addition to private entrances, the units have their own bathrooms, kitchens, and other living features. In terms of the exterior, occupants may share a backyard, garden, or driveway.

Every duplex has one thing in common: a shared wall. If the duplex units are side by side, the occupants will share a wall. One on top of the other? Occupants share a ceiling/floor.

Just because properties share a wall doesn’t inherently make them a duplex. Sometimes duplexes are confused with twin homes.

A twin home may look like a duplex, but the shared wall is in reality the lot line between the two homes. So it’s two connected properties, each on its own lot. A duplex is two properties, owned by the same person, on a single lot.

The square footage of each duplex half is typically quite similar to the other. In many, occupants will find that the layouts mirror each other (if they’re side by side), or duplicate exactly (if they’re on top of each other).

Properties with carriage houses or guesthouses are not considered duplexes: They usually do not share walls, and the smaller residence is considered an accessory dwelling unit or ADU.

Duplexes fall in the category of multifamily dwellings, which also includes triplexes and quads (aka fourplexes). According to the National Multifamily Housing Council, more than 17 million renters (or about 17% of all renters) live in two- or four-unit dwellings.

The appeal of multi-family structures, including duplexes, has increased in recent years, with mortgages becoming more easily available and with down payments as low as 5%.

Benefits of a Duplex

Duplexes have the exciting “two for one” energy, which can make buying them enticing. The style of living comes with benefits for the buyer, including:

•   Income to help with mortgage. Duplex owners who decide to live in one of the units can rent out or Airbnb the other, making income to help offset the monthly mortgage payments and upkeep.

•   Potential tax benefits. Mortgage interest is tax-deductible for a primary or secondary home if the home acquisition debt is $750,000 or less ($375,000 for a married couple filing separately).

   Resident duplex owners can write off mortgage interest and property tax only on the half of the property they live in. However, if they have a renter, they can write off repairs to that unit, any utility bills paid for the rental, and management fees. The IRS even allows the owner to depreciate the rented half of the property.

•   Flexibility in the future. Having two homes on one lot opens up options for owners. They can rent out a unit or use it as an office or studio space. In the future, the unit could become an apartment for aging parents or a guest suite for visiting family members.

•   Landlord proximity. If a duplex owner is getting into the landlord business for the first time, it might be beneficial to live close to the tenant. In the event of a repair or emergency, the tenant is just steps away.

   Additionally, because of landlord proximity, duplex owners might find that renters keep the home in better condition. If the landlord is living on the property, a tenant might be less likely to abuse features or leave problems unreported.

   A duplex could also be a good opportunity to live next to a family member or close friend. It means both parties live on the same property but not with each other. For some arrangements, it’s a good balance between living together while also apart.

•   Affordability. If you’re wondering how much duplexes cost, know this: A duplex by definition is two properties with a single price, and can be more affordable than two single-family homes. The appeal of multi-family structures has increased in recent years as mortgages have become more easily available, and down payments can be as low as 5%.

Recommended: Factors That Affect Property Value

Drawbacks of a Duplex

Double the property doesn’t always mean double the fun. Here’s why a duplex might not be the right fit for all buyers:

•   Affordability. Duplexes may often be located in more affordable neighborhoods, and two properties in one sounds like a deal — but when the numbers are crunched, the duplex price may be higher than that of a single-family home nearby.

•   Acquisition costs. If a duplex buyer does not plan to occupy the property, the down payment will typically be at least 15% of the purchase price.

•   Insurance. Multifamily homeowners coverage, known as landlord insurance, will usually be more expensive (often as much as 25% more) for an investment property. This can be a key concern when thinking about how to buy a duplex.

•   Tax season could be complicated. Yes, a homeowner can offset costs with a tenant in a duplex, but they’ve just signed themselves up for a more complicated tax scenario than with an owner-occupied single-family home.

•   Landlord responsibilities. Many homebuyers are drawn to the idea of a duplex because they can generate income while living there. However, being a landlord isn’t just about collecting rent checks each month. Duplex owners are responsible for their renter’s unit, meaning fixing issues and being available for general repairs.

   No one wants to address an overflowing toilet at 2 am, but as a landlord, that might well be a reality. It’s a 24/7 job, and not only will a duplex owner be responsible for fixing the issues, but the cost of repairs will have to come out of their pocket.

•   Finding good tenants. Finding renters can be challenging. Owning a duplex doesn’t automatically guarantee extra income, and the process of finding reliable renters can be time-consuming. Plus, duplex owners will have to start the process anew each time a tenant moves out.

   Remember, if the second dwelling is unoccupied, the duplex owner still owes the same amount each month. Before buying a duplex, it’s worth considering how much time owners can put into searching for the right tenant, and if they want to have that responsibility long term.

•   Bad tenants. Let’s face it, not all tenants will be perfect. In reality, they could be loud, rude, messy, and/or late on rent. There are a multitude of things that could go wrong with a renter, and duplex owners should be comfortable bringing issues to the table. Owners who decide to live onsite could get stuck with a less-than-considerate neighbor.

Recommended: 31 Ways to Save for a Home

Estimate a Mortgage Payment for a Duplex

Now that you know about the pros and cons of owning a duplex, if you’re still interested in the idea of purchasing one, use the mortgage calculator below to get an estimate of what future mortgage payments would be.

Recommended: 25 Things to Know When Renting Out an Airbnb

Obtaining a Mortgage

If, now that you know the pros, the cons, and the costs, you are still ready to move ahead, the next step in how to buy a duplex would be financing your purchase. A potential duplex buyer can apply for a Fannie Mae loan with 5% down if they plan to live in the multifamily home themselves.

Other options for a buyer who plans to occupy one of the units is a 2-, 3-, and 4-unit (multifamily) home FHA loan, a VA loan, or conventional financing. (Investors are limited to conventional mortgage loans.) FHA loans can be a good choice for first-time home buyers, or those with less-than-perfect credit.

Check out our first-time home buyers guide for additional information on mortgages, loans, and closing costs.

Applicants may be able to use projected rental income to qualify for a loan. For rental income to be taken into account, though, renters usually must have already signed a lease. And not all of the projected income applies; a percentage is usually subtracted to account for maintenance and vacancies.

It makes sense for would-be buyers to have a good feel for their budget, as well as the potential costs associated with buying a property.

Knowing whether you plan to live at the address or rent out both units is a big consideration. Investors sometimes need a higher down payment than owner-occupants do. And if your down payment is less than 20%, you’ll need to have private mortgage insurance as well.

The Takeaway

Buying a duplex can be a great opportunity to own two properties, perhaps occupying one and earning rental income on the other. But there are pros and cons to be considered, as well as implications for your finances.

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SOHL-Q424-137

Gross income is the amount of money earned before any payroll deductions for taxes, insurance, retirement contributions, and such. To calculate gross monthly income from a biweekly paycheck, find the gross amount listed on the pay stub (usually the starting number). Multiply that figure by 26 (the number of paychecks received in a year), then divide by 12 (months in a year).

The calculation for gross monthly income can differ depending on paycheck frequency. Below we’ll show you how to calculate your gross pay for different payroll schedules.

How to Calculate Monthly Pay From Biweekly Pay

There are two different monthly pay figures to understand, gross and net. Each is useful in different situations. When you’re applying for a loan, most lenders use gross monthly income to determine your debt-to-income ratio (DTI). However, many people find it easier to budget based on net or take-home pay. A budget planner app can help you decide the best approach for your situation.

As we spelled out above, if you’re paid biweekly (every two weeks), the formula for gross monthly income is:

(Gross pay amount × 26) ÷ 12

Hourly workers can also use this next formula if they work a consistent number of hours per week:

(Hourly salary × weekly hours worked × 52) ÷ 12

To find net monthly pay, substitute the actual amount of your paycheck for the gross amount in the first formula.

Recommended: Does Net Worth Include Home Equity

How Many Bi-Weeks in a Year

There are 26 biweekly pay periods in a year. Employees who get paid biweekly will receive 26 paychecks from January to December.

It’s important to note that receiving pay biweekly differs from receiving pay twice a month on the same dates. Workers who receive biweekly checks can’t just multiply one paycheck by two to find their monthly salary.

Employees who get paid twice a month — for instance, on the 15th and 30th — can find their monthly gross income simply by adding together the gross figures on their two monthly paychecks.

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The Different Types of Payment Periods

The most common pay periods for employees are:

•   Biweekly: Paid every other week, or 26 paychecks per year.

•   Semimonthly: Paid twice a month on the same dates, or 24 checks per year.

•   Weekly: Paid once a week, or 52 checks per year.

•   Monthly: Paid once a month, or 12 checks per year.

Employees who receive biweekly pay get two checks or direct deposits each month, except for two months of the year when they receive three paychecks. Employees who are paid biweekly might get a paycheck every other Wednesday or Friday, or whatever day their employer chooses.

With semimonthly pay, an employee might get paid on the 15th and 30th of every month. There are always two paydays, for a total of 24 per year instead of 26.

An employee who gets paid twice a week is on a semiweekly schedule. This would entail eight paychecks each month.

Pros and Cons of Biweekly vs Semimonthly Pay

For employees, there are pros and cons to biweekly pay. Depending on their expenses and savings strategy, someone might prefer a biweekly or semimonthly schedule.

For most workers, the main pro to biweekly pay is the third “bonus” check they receive two months out of the year. By budgeting for two paychecks every month, workers can designate the occasional third check for special line items like vacations, holiday gifts, paying off debt, or boosting savings.

For others, biweekly checks just make budgeting and managing expenses more challenging. Semimonthly pay is preferable because it offers an accurate reflection of real monthly income.

Also, each semimonthly check can be dedicated to particular expenses. For example, the second check of the month can go to rent, utilities, and other housing costs, which are often due the first of the month.

Compared to weekly paychecks, both biweekly and semiweekly checks require better cash management on a weekly basis. For someone who lives paycheck to paycheck, biweekly pay periods might mean they run out of money before the next check arrives.

The Takeaway

To calculate gross monthly income from a biweekly paycheck, find the gross amount listed on the pay stub, multiply by 26, then divide by 12. (Do not use this formula if you’re paid twice a month on the same dates, rather than the same days of the week.) For your monthly net pay, substitute your net or take-home pay for the gross amount in the same calculation.

Take control of your finances with SoFi. With our financial insights and credit score monitoring tools, you can view all of your accounts in one convenient dashboard. From there, you can see your various balances, spending breakdowns, and credit score. Plus you can easily set up budgets and discover valuable financial insights — all at no cost.

FAQ

How do you convert biweekly pay to monthly income?

To calculate gross monthly income from a biweekly paycheck, find the gross amount listed on the pay stub (usually the starting number). Multiply that figure by 26 (the number of paychecks received in a year), then divide by 12 (months in a year).

How do I calculate my gross monthly income?

Gross monthly income is the total of all paychecks and income received in a month, including any side hustles, rental income, etc., but before taxes and other deductions.

How do you calculate gross income from a W-2 form?

Gross wages cannot always be found on a W-2 form due to various pre-tax deductions. Instead, look at the gross amount listed on the employee’s final paycheck for the year.

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*Terms and conditions apply. This offer is only available to new SoFi users without existing SoFi accounts. It is non-transferable. One offer per person. To receive the rewards points offer, you must successfully complete setting up Credit Score Monitoring. Rewards points may only be redeemed towards active SoFi accounts, such as your SoFi Checking or Savings account, subject to program terms that may be found here: SoFi Member Rewards Terms and Conditions. SoFi reserves the right to modify or discontinue this offer at any time without notice.

Financial Tips & Strategies: The tips provided on this website are of a general nature and do not take into account your specific objectives, financial situation, and needs. You should always consider their appropriateness given your own circumstances.

Third-Party Brand Mentions: No brands, products, or companies mentioned are affiliated with SoFi, nor do they endorse or sponsor this article. Third-party trademarks referenced herein are property of their respective owners.

Tax Information: This article provides general background information only and is not intended to serve as legal or tax advice or as a substitute for legal counsel. You should consult your own attorney and/or tax advisor if you have a question requiring legal or tax advice.

SORL-Q224-1921206-V1

A Form 1098 is a tax document that reports amounts that may affect a tax filer’s adjustments to income or deductions from their income on their annual tax return. There are several variations of the form — some are used to report amounts paid and some are used to report charitable contributions made. Any of the forms a person may receive are important documents to refer to when completing annual income tax returns.

Reasons for Getting a Form 1098

There are several variations of Form 1098. The standard form, Mortgage Interest Statement, is probably the one most people are familiar with. It reflects mortgage interest a borrower paid in a calendar year. If a borrower paid $600 or more in interest on a mortgage debt in a calendar year, they should receive a Form 1098 to use when completing their annual tax return. The form includes the amount of mortgage interest paid and any refund of overpaid interest, the outstanding mortgage balance, mortgage insurance premiums paid, and other amounts related to the mortgage loan.

1098-T vs 1098-E

For those who have paid tuition to a college or university or who have paid interest on student loan debt, the Forms 1098-T and 1098-E may be familiar.

•   Form 1098-T, Tuition Statement, includes amounts of payments received by the school for qualified tuition and related expenses. It also includes amounts of scholarships and grants a student may have received, adjustments to those scholarships and grants, and other information.

•   Form 1098-E is a Student Loan Interest Statement. Lenders who receive interest payments of $600 or more from a student loan borrower in a calendar year must provide this form to the borrower. The form includes the amount of student loan interest paid by the borrower, the account number assigned by the lender, and other information.

Other Variations of Form 1098

•   Form 1098-C is connected with a very specific form of charitable giving. It shows any donation a tax filer made to a qualifying charity or non-profit of a car, truck, van, bus, boat, or airplane worth more than $500 and that meets other requirements.

•   Form 1098-F shows any court-ordered fines, penalties, restitution or remediation a person has paid.

•   Form 1098-MA reflects mortgage assistance payments made by a State Housing Finance Agency (HFA) and mortgage payments made by the mortgage borrower, the homeowner.

•   Form 1098-Q is connected with a specific form of retirement-savings vehicle, called a Qualifying Longevity Annuity Contract. This form is a statement showing the money the annuity holder received from such a contract over the course of a calendar year.

Using Form 1098 at Tax Time

For homeowners who are still paying mortgage payments, Form 1098-Mortgage Interest Statement is an important part of completing a tax return. A tax filer’s deductions depend on a number of specific factors, but there are some general rules to keep in mind when looking at Form 1098.

•   It is necessary to itemize deductions on a tax return to claim the mortgage interest deduction.

•   Deductions are limited to interest charged on the first $1 million of mortgage debt for homes bought before December 16, 2017, and $750,000 for homes bought after that date.

•   To take the mortgage interest deduction, the property that secures the debt must be a main or second home.

•   Separate forms will be provided for each qualifying mortgage.

The potential deduction of interest paid on student loans, shown on Form 1098-E, follows different rules. Notably, this deduction is an adjustment to a tax filer’s income, so it’s not necessary to itemize deductions.

•   The student loan interest deduction is limited to $2,500 or the amount actually paid, whichever is less.

•   The deduction is gradually phased out or reduced if the taxpayer’s modified adjusted gross income (MAGI) is between $80,000 and $95,000 ($165,000 and $195,000 if married filing jointly) for 2024, and $85,000 and $100,000 ($170,000 and $200,000 if married filing jointly) for 2025.

Form 1098-T provides information that will be useful for tax filers who qualify for education credits provided by the American Opportunity Credit or the Lifetime Learning Credit.

•   The American Opportunity Credit may be claimed by certain tax filers who paid qualified higher education expenses. To claim the credit, certain qualifications must be met, including income level, dependency status, the type of program the student is enrolled in, the enrollment status of the student, among others. The maximum credit is $2,500 per eligible student and may be claimed for only four tax years per eligible student.

•   The Lifetime Learning Credit may be claimed by certain tax filers who paid qualified education expenses, but has some differences from the American Opportunity Credit. The annual limit is $2,000 per tax return (not per student). It’s not limited to college-related expenses — courses to acquire or improve job skills are also eligible. There is no limit on the number of years this credit can be claimed, and there is no minimum number of hours a student must be enrolled.

Both the American Opportunity Credit and the Lifetime Learning Credit have income phase-out levels. Like the student loan interest deduction provided by Form 1098-E, both of these credits are adjustments to income and don’t require a tax filer to itemize deductions.

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The Takeaway

Any of the variations of Form 1098 contain important information for filing your taxes. They all include financial information that has the potential to affect the amount of money a tax filer may be able to deduct. For specific information about a tax situation, it’s recommended to talk to a tax professional. The information in this article is only intended to be an overview, not tax advice.

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Although we do our best to recognize all Eligible Direct Deposits, a small number of employers, payroll providers, benefits providers, or government agencies do not designate payments as direct deposit. To ensure you're earning the APY for account holders with Eligible Direct Deposit, we encourage you to check your APY Details page the day after your Eligible Direct Deposit posts to your SoFi account. If your APY is not showing as the APY for account holders with Eligible Direct Deposit, contact us at 855-456-7634 with the details of your Eligible Direct Deposit. As long as SoFi Bank can validate those details, you will start earning the APY for account holders with Eligible Direct Deposit from the date you contact SoFi for the next 31 calendar days. You will also be eligible for the APY for account holders with Eligible Direct Deposit on future Eligible Direct Deposits, as long as SoFi Bank can validate them.

Deposits that are not from an employer, payroll, or benefits provider or government agency, including but not limited to check deposits, peer-to-peer transfers (e.g., transfers from PayPal, Venmo, Wise, etc.), merchant transactions (e.g., transactions from PayPal, Stripe, Square, etc.), and bank ACH funds transfers and wire transfers from external accounts, or are non-recurring in nature (e.g., IRS tax refunds), do not constitute Eligible Direct Deposit activity. There is no minimum Eligible Direct Deposit amount required to qualify for the stated interest rate. SoFi Bank shall, in its sole discretion, assess each account holder's Eligible Direct Deposit activity to determine the applicability of rates and may request additional documentation for verification of eligibility.

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Financial Tips & Strategies: The tips provided on this website are of a general nature and do not take into account your specific objectives, financial situation, and needs. You should always consider their appropriateness given your own circumstances.

We do not charge any account, service or maintenance fees for SoFi Checking and Savings. We do charge a transaction fee to process each outgoing wire transfer. SoFi does not charge a fee for incoming wire transfers, however the sending bank may charge a fee. Our fee policy is subject to change at any time. See the SoFi Bank Fee Sheet for details at sofi.com/legal/banking-fees/.
Tax Information: This article provides general background information only and is not intended to serve as legal or tax advice or as a substitute for legal counsel. You should consult your own attorney and/or tax advisor if you have a question requiring legal or tax advice.

SOBNK-Q424-075

It’s getting to be that time of year again: tax time. But what happens if you don’t have all your tax information ready to go by April?

While keeping track of everything can be a headache, the good news is, most of your tax information is probably recoverable, even if it doesn’t show up on time. Here’s what to do.

What Paperwork Do You Need to Keep for Taxes?

There are many types of IRS forms that contain the information necessary to file a tax return, whether you’re doing so through IRS Free File or with tax software, a professional preparer, or an accountant.

Income Statements

If you’re an employee of a company, your employer will need to supply a W-2 form, which shows your income, the amount that was already withheld for taxes, and any “elective deferrals” made to a tax-deferred 401(k) or similar employer plan.

Employers have until January 31 to send W-2s.

If you’re self-employed — such as an independent contractor, sole proprietor, member of a business partnership, freelancer, or gig worker — you’ll receive a Form 1099 from each client that paid you $600 or more. It’s specifically a 1099-NEC, which replaced what used to be recorded on Form 1099-MISC, Box 7.

The many types of 1099 forms serve to report income from nonemployment-related sources like freelance work, passive income streams, interest earned from bank accounts, or investment dividends. Which means you might get a 1099 if you’re an employee who has a savings or investment account.

You should receive most of your 1099 forms by January 31 each year to report the prior year’s payments. In certain instances, the1099 due date is February 15.

Recommended: How to File Taxes for Beginners

Interest and Health Care Statements

Other common statements include Form 1098, which comes in several variations and lists expenses that may be tax deductible. Two common ones:

•   Mortgage interest, if you itemize deductions

•   Student loan interest

The IRS requires most 1098s to be sent to taxpayers by Jan. 31 each year.

Form 1095 includes information pertaining to health care coverage. You may get a 1095-A if you had a health care plan from the Marketplace, a 1095-B if you or someone in your household had “minimum essential coverage,” or a 1095-C if you received employer-provided health insurance.

The annual deadline for providers to issue Form 1095s is Jan. 31.

Expense Receipts

If you’re trying to lower your taxable income come tax time (and who isn’t), start by gathering the records you kept in a real or digital folder, or excavating that not-so-carefully kept cache of receipts and bills.

To deduct medical expenses on your federal tax return, you’ll need to itemize your deductions. In addition, your qualified medical expenses must exceed 7.5% of your adjusted gross income. Qualified deductions include:

•   Premiums for medical, dental, vision, long-term care, Medicare Part B, and Medicare Part D insurance that you were not reimbursed for and that were not paid with pretax money.

•   Copays for medical, dental, or vision care.

•   The cost of prescriptions, eyeglasses, contact lenses, lactation aids, medical aids, and medical exam or test fees.

You may be able to claim the child and dependent care credit if you paid for the care of a qualifying person to enable you (and your spouse, if filing a joint return) to work or look for work.

For self-employed individuals, it’s a good idea to save receipts from every business-related purchase and to keep track of utility bills and rent or mortgage information. The home office tax deduction is available to self-employed people who use part of their home, owned or rented, as a place of work regularly and exclusively.

Reasons You May Not Have Gotten Your Tax Forms

First, you’ll want to ensure the form is actually late. Most tax forms should be issued by Jan. 31, but as a general rule of thumb, you may not receive all of your tax forms until closer to Valentine’s Day.

If a form hasn’t appeared by then, a glitch with your address might be the reason. If an employer does not have the right address, a mailed W-2 could be rejected and sent back. An address problem can also trip up the delivery of a 1099.

Make sure payers have your correct address, and, if needed, put in an address forwarding order at your local post office or at USPS.com.

It’s also a good idea to file an IRS change of address Form 8822. The IRS doesn’t update an address based on a change of address filed with the U.S. Postal Service.

You can avoid mail-related delays by signing up for paperless tax forms with your employer and any financial institutions you work with.

What Do You Do If You Don’t Get Your Tax Forms?

If the deluge of heart-shaped candy boxes has come and gone, there are steps you can take to retrieve your information.

What If You Don’t Get Your W-2?

If your employer provides electronic access to your earnings statement, it will typically email an OK to download it. If that message hasn’t appeared by Jan. 31, you might want to check your spam folder. Or you may have just overlooked the email in the slush pile.

If you can’t get your W-2 by mail or electronically, contact your employer’s HR or accounting department.

If you still aren’t able to resolve the problem, you can turn to the IRS. Call 800-829-1040, the IRS’ toll-free service, with the following information:

•   Your name, contact information, and taxpayer identification number

•   Your employer’s name and contact information

•   The dates you worked there

•   An estimate of how much you earned and how much was withheld from your income in federal taxes; pay stubs might help with this part

You may be asked to file Form 4852, which serves as a substitute for Form W-2 if the W-2 can’t be located. On Form 4852, you’ll need to estimate wages earned and taxes withheld. Base the estimate on year-to-date information from your final pay stub, if possible.

You could also try the IRS “Get Transcript” tool, which you can access through your individual online account (if you don’t have an account, you can create one at IRS.gov). Once you’re logged into your account, you can request your wage and income transcript, which shows the data reported on W-2s, the Form 1099 series, Form 1098 series, and Form 5498 series. Keep in mind that information for the current processing tax year may not be complete until the earnings are reported.

What If You Don’t Get Your 1099?

If you have not received an expected 1099 by several days after Jan. 31, when most are due, contact the payer.

If you aren’t sure where the 1099 reporting your investment income or interest earned in a high-yield savings account is, try logging on to your online brokerage or bank account and clicking around. Digital forms are often offered directly to account holders.

The good news is, you aren’t required to attach your 1099s to your tax return unless taxes were withheld from the payments reported on them. So if you have another record of that income — such as year-end account statements — you may file your taxes with that information.

Recommended: Visit the Tax Season Help Center

What If You Don’t Get Your 1095?

If you don’t have your 1095, you can reach out to the source it should have come from. For the 1095-A, log into your Health Insurance Marketplace account and look for the digital version of the form there.

According to the IRS, you should only wait to file if you’re missing Form 1095-A. The other two types, 1095-B and 1095-C, are not required.

What If You Don’t Get Your 1098?

This is another tax document that’s not formally required by the IRS, but it does contain information you probably want to include on your return, since it could translate to a tax deduction.

If you haven’t received your 1098 in the mail, one first step is to log into the account you have with the lender that issued the mortgage or student loan. Again, digital tax documents are often offered directly to borrowers through the online portal. If you can’t find the documents yourself, call the lender’s customer service line. You might also be able to find the necessary numbers on your year-end statement.

What to Do If You Don’t Have Your Stuff Together On Time

If all else fails and you’re simply feeling crunched for time, you can always file for an extension with the IRS, which involves — of course — a form: Form 4868. Individual tax filers, regardless of income, can electronically request an automatic tax-filing extension.

To get the extension, you must estimate your tax liability on the form and pay any amount due, the IRS says.

You can also get an extension by paying all or part of your estimated income tax due and indicate that the payment is for an extension using IRS Direct Pay, the Electronic Federal Tax Payment System, or a credit or debit card.

An extension gives you an additional six months to get your paperwork in order.

Finally, if you use a tax preparer service, whether a human or software product, keep in mind that your information from the prior year is probably on file, which may help fill in some gaps. Taxpayers can also request a transcript of their prior year’s tax return directly from the IRS.

The Takeaway

Tax time can be stressful even for the most organized among us, and missing tax forms can add angst. If tax forms have not materialized by mid-February, don’t hit the panic button. There are workarounds and simple solutions.

Interested in opening an online bank account? When you sign up for a SoFi Checking and Savings account with eligible direct deposit, you’ll get a competitive annual percentage yield (APY), pay zero account fees, and enjoy an array of rewards, such as access to the Allpoint Network of 55,000+ fee-free ATMs globally. Qualifying accounts can even access their paycheck up to two days early.

FAQ

Do you get penalized for missing tax forms?

Tax filers are not penalized for missing forms. If they can’t get the forms, they must still file their tax return on time or get an extension to file.

A business may be penalized for failing to issue W-2s, 1095-Cs, 1099-NECs, or 1099-MISC forms by the deadline to do so.

How long does it take to send missing tax forms?

Copies of W-2s can be requested from the IRS. It can take up to 10 days for an online request to be processed, and up to 30 days for a mail or fax request.

Can I look up my tax forms online?

Yes. You can access your personal tax records by logging into your individual online account at IRS.gov. According to the IRS, this is the quickest and easiest way to view or download your tax transcripts, find out how much you owe, check your refund, view your payment history, make a payment, and see your prior year adjusted gross income (AGI).

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Annual percentage yield (APY) is variable and subject to change at any time. Rates are current as of 12/23/25. There is no minimum balance requirement. Fees may reduce earnings. Additional rates and information can be found at https://www.sofi.com/legal/banking-rate-sheet

Eligible Direct Deposit means a recurring deposit of regular income to an account holder’s SoFi Checking or Savings account, including payroll, pension, or government benefit payments (e.g., Social Security), made by the account holder’s employer, payroll or benefits provider or government agency (“Eligible Direct Deposit”) via the Automated Clearing House (“ACH”) Network every 31 calendar days.

Although we do our best to recognize all Eligible Direct Deposits, a small number of employers, payroll providers, benefits providers, or government agencies do not designate payments as direct deposit. To ensure you're earning the APY for account holders with Eligible Direct Deposit, we encourage you to check your APY Details page the day after your Eligible Direct Deposit posts to your SoFi account. If your APY is not showing as the APY for account holders with Eligible Direct Deposit, contact us at 855-456-7634 with the details of your Eligible Direct Deposit. As long as SoFi Bank can validate those details, you will start earning the APY for account holders with Eligible Direct Deposit from the date you contact SoFi for the next 31 calendar days. You will also be eligible for the APY for account holders with Eligible Direct Deposit on future Eligible Direct Deposits, as long as SoFi Bank can validate them.

Deposits that are not from an employer, payroll, or benefits provider or government agency, including but not limited to check deposits, peer-to-peer transfers (e.g., transfers from PayPal, Venmo, Wise, etc.), merchant transactions (e.g., transactions from PayPal, Stripe, Square, etc.), and bank ACH funds transfers and wire transfers from external accounts, or are non-recurring in nature (e.g., IRS tax refunds), do not constitute Eligible Direct Deposit activity. There is no minimum Eligible Direct Deposit amount required to qualify for the stated interest rate. SoFi Bank shall, in its sole discretion, assess each account holder's Eligible Direct Deposit activity to determine the applicability of rates and may request additional documentation for verification of eligibility.

See additional details at https://www.sofi.com/legal/banking-rate-sheet.
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When buying or selling a property, you may come across the term “fee simple.” What does fee simple mean, and why is it important in real estate? Fee simple is the highest form of property ownership, and it’s the most common type of homeownership in the U.S. Here’s a closer look at the meaning of fee simple and how it works in practice.

Definition of Fee Simple

Fee simple, also known as fee simple ownership, provides full control and rights to a property. This includes the right to use, sell, or lease the property as the owner sees fit. Another important aspect of fee simple definition: Ownership is indefinite, meaning that it can be passed on to heirs or beneficiaries for any amount of time.

Fee simple ownership dates back to the feudal system in medieval England. While this system originally required services on behalf of both the tenant and landlord, it gave rise to our modern system of private property rights.

Fee simple meaning can vary based on the type of fee simple ownership, which we’ll elaborate on below.

Recommended: Mortgage Calculator With Taxes

Types of Fee Simple Ownership

There are two types of fee simple ownership that you’ll want to acquaint yourself with before you make a home purchase, whether you’re buying a foreclosed home or getting a home mortgage loan for a vacation property: fee simple absolute and fee simple defeasible.

Understanding both types of fee simple ownership can help buyers uncover any conditions on a property before making an offer on a home. Here is an overview of the different types of fee simple ownership:

•  Fee simple absolute: This form of fee simple ownership gives unrestricted rights to a property title in perpetuity. The property can be used, leased, sold, or transferred without any limitations other than liens, local zoning, or failure to pay property taxes. This type of fee simple ownership is the most common.

•  Fee simple defeasible: This type of ownership comes with certain restrictions and conditions. As with fee simple absolute, owners can keep their property in perpetuity. But if conditions are violated, even after closing, the property could legally be transferred back to the seller or a designated third party. For example, fee simple defeasible could require that property remains as agricultural land. As you might imagine, if you are selling a property, this could affect how much a house is worth.

Rights and Responsibilities of Fee Simple Owners

Fee simple owners have considerable rights in how they use their property within the limits of zoning. Owners also have the right to lease, sell, improve, bequeath, or mortgage the property.

There are also responsibilities to be mindful of as a property owner. If you own a condo or apartment, for example, you typically have fee simple ownership of the individual unit. However, the owners may also be responsible for the upkeep of shared common areas, which often have restrictions on their use.

Fee Simple vs. Other Forms of Property Ownership

Fee simple is one of several forms of property ownership. Here are some other types of property ownership to keep in mind.

•  Leasehold ownership: Whereas fee simple grants indefinite ownership, leasehold ownership is subject to the duration and terms set in a lease agreement. In a leasehold arrangement, landlords can set conditions on how a tenant uses the property, such as restricting pets in an apartment. When the lease ends, the lessee’s rights to use the property end.

•  Life estate: This is a type of joint ownership that transfers a property to another person after the owner’s death. This allows an heir, or grantor, to receive the property without going through probate. The owner retains their full rights to use the property, but selling the property or mortgage refinancing would require the grantee’s approval.

Importance of Fee Simple in Real Estate Transactions

Buying a home or property is a major investment. It’s important to understand how fee simple impacts property value, financing, and the marketability to prospective homebuyers.

Generally speaking, fee simple ownership comes with higher property values than other forms of ownership, since there are fewer restrictions on how it’s used. Because owners have full control of the property, it also makes the homebuying process and commercial real estate transactions less complex. This reduced risk can help buyers secure financing and enhance a property’s appeal when it’s time to sell.

Limitations on Fee Simple Ownership

There are limitations to any type of property ownership, including fee simple. Fee simple ownership is subject to encumbrances — legal claims against a property from a party other than the owner. In other words, encumbrances impact an owner’s ability to use and transfer the property.

The main types of encumbrances to be aware of include: deed restrictions, easements, encroachments, and liens.

•  Deed Restrictions: These are rules and restrictions on how a property can be used by the owner. They’re often used by homeowner’s associations (HOA) to limit how a property can be improved and used.

•  Easements: This type of encumbrance grants land use rights or property access to a third party. For example, an easement can grant a neighbor access to a shared driveway.

•  Encroachments: This occurs when a neighbor violates an owner’s property rights by putting up a structure that limits the full use of the property. A common example is building a fence that crosses a property line.

•  Liens: This gives another party the right to seize a property for nonpayment of a debt. Examples include HOA fees, home mortgage loans, and property taxes.

Another potential limitation to note is eminent domain, which allows governments to claim private property if it’s considered necessary for public use. In the rare case of eminent domain, owners are compensated for the value of their property.

How to Obtain Fee Simple Ownership

To reiterate, fee simple ownership is the most common type of property ownership. Checking the deed is the most reliable way to confirm whether a property is fee simple or another type of ownership. Once you’ve ticked this off your to-do list you can get on to other things, like ordering up a home inspection and preparing your moving checklist.

Recommended: Mortgage Interest Deduction

Fee Simple in Commercial Real Estate

Fee simple ownership applies to both residential and commercial real estate. Since fee simple is the highest form of ownership with the least restrictions, it can make obtaining financing easier for commercial properties. With fee simple ownership, keep in mind that local zoning dictates what commercial activities can take place at a specific property.

The Takeaway

It’s important to take note of any encumbrances that could impact how a property is used before getting to the closing table. If you’re in the market for a new home or investment property, keep in mind that fee simple ownership is the most common type of property ownership in the U.S. and fee simple ownership — specifically fee simple absolute ownership — grants the greatest level of control and rights over a property.

Unless you’re a realtor or building out a portfolio of properties, fee simple and other real estate terms may go beyond your needs. But understanding your rights with different types of homeownership can help inform your property search.

Looking for an affordable option for a home mortgage loan? SoFi can help: We offer low down payments (as little as 3% - 5%*) with our competitive and flexible home mortgage loans. Plus, applying is extra convenient: It's online, with access to one-on-one help.

FAQ

Is fee simple a good thing?

Yes, fee simple absolute (one of two types of fee simple property) gives unrestricted rights to a property title in perpetuity. The property can be used, leased, sold, or transferred without any limitations other than those imposed by liens, local zoning rules, and unpaid property taxes.

What are the restrictions on a fee simple property?

The only restrictions on a fee simple absolute property are those posed by local zoning rules — and of course any restrictions posed as a result of unpaid property taxes or mortgage debt, for example. Fee simple defeasible property has more restrictions. Specifically, the property could legally be transferred back to the seller or a designated third party if a pre-established rule of ownership isn’t followed. For example, a rule might specify that property be used for agricultural purposes.

Photo credit: iStock/venuestock

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