Home Filing Taxes A Helpful Guide to Tax Forms

A Helpful Guide to Tax Forms

As much as taxes are an inevitable aspect of our financial lives, they remain an overwhelming and confusing topic to many people. Tax payments are important, given that they play a critical role in generating the funds necessary to run the economy of a country. For this reason, it is essential to understand the various forms and regulations required for filing taxes. In this article, we will discuss a helpful guide to tax forms.

The Basics of Taxes

Before diving into the specifics of taxes, it is essential to understand certain terminologies. Taxes refer to the money paid to the government by individuals and businesses to fund government expenditures and to provide basic services such as infrastructure, healthcare, and education. Taxes are not voluntary; instead, they are a mandatory obligation. Failure to pay taxes could result in severe consequences such as fines or imprisonment.

There are various types of taxes, including income tax, property tax, sales tax, and employment tax. Income tax is a tax levied on the earnings of individuals and businesses, while property tax is paid on the value of a person’s real estate property. Sales tax is levied on the purchase of goods and services, while employment taxes are paid by an employee’s employer to the government.

Tax Forms

Tax forms are used to report income and to calculate the amount of tax owed to the government. In the United States, there are numerous tax forms that are provided by the Internal Revenue Service (IRS) to collect the information necessary for calculating and paying taxes. Some of the common tax forms include the W-2, 1040, 1099, and W-4.

W-2 Form

The W-2 form is a tax form issued by employers to their employees that reports the employee’s annual wages and the taxes withheld from their paycheck. The information reported on the form includes the employee’s name, social security number, and address, along with details of the employer, such as the employer’s identification number.

W-2 forms are crucial as they help the IRS to determine the amount of taxable income, and the amount of tax that should be withheld from the employee’s paycheck. It is important to note that employees must file their W-2 forms by January 31st, each year.

1040 Form

The 1040 form is the primary tax form used by individuals to file their income tax returns with the IRS. The form is used to report annual income, including wages, salaries, and tips, and any additional sources of income such as interest, dividends, or capital gains.

The 1040 form is divided into several sections, including income, adjustments, deductions, credits, and taxes. The combination of these sections determines the amount of tax owed to the government or the refund amount. The form must be filed by April 15th of each year, which is the tax filing deadline.

1099 Form

The 1099 form is a tax form used to report income from various sources, such as freelance work, contract work, and dividends. The form is issued to the recipient of the income and to the IRS.

The 1099 form is used to report income that is not subject to tax withholding, which means that the recipient is responsible for paying the correct amount of tax owed to the government. The form must be filed by January 31st for non-employee payments, and by February 28th for other payments.

W-4 Form

The W-4 form is a tax form used to determine the amount of tax that should be withheld from an employee’s paycheck. The form is filled out by employees and submitted to their employers.

The form is designed to calculate the employee’s income tax withholding based on their expected income and various factors such as marital status, number of dependents, and additional sources of income. The W-4 form should be updated when there is a significant change in the employee’s life, such as getting married or having a child.

Common Tax Deductions

Tax deductions are the reductions in taxable income that one is eligible for, resulting in a decrease in the amount of tax owed to the government. There are numerous deductions available to individuals, including the following:

Charitable donations: Donations made to charitable organizations such as churches, schools, or medical charities are tax deductible.

Mortgage interest: Homeowners who pay mortgage interest may be eligible for a tax deduction.

Medical expenses: Medical expenses such as doctor’s fees and medication costs may be tax-deductible if they exceed a certain percentage of the individual’s income.


In conclusion, taxes are a critical aspect of our lives, and failing to comply may result in serious consequences. Understanding the different tax forms and regulations may seem confusing, but it is essential to make sure you are following all necessary procedures and paying the correct amount of tax owed.

By sticking to the guidelines outlined in this article, you can ensure that you have the necessary knowledge to fill out and submit your tax forms correctly and on time. Remember to keep all relevant documents and receipts in order to ease the tax filing process and avoid any complications that may arise as a result of failing to do so.

The IRS presented individuals such as obligated tax payers and tax exempt organizations the use of tax forms to report any financial information. These tax forms are used to report income, which is identified as  the sum of all wages,salaries, profits, interests or any other form of  earnings received within any given period of time. These forms are used to calculate any taxes owed to the federal government of the United States. There are four standard versions of tax forms used  by individuals when referencing their income to the federal government.

The most widely used form to file income taxes is known as the individual Income tax return form 1040EZ. This is a simple form that can be applied to individuals who are 65 years old and younger with no dependents. They would also need to meet the requirement of no itemized deductions. Any itemized deduction is any allowable expense a individual would be able to report on their taxes in order to reduce their taxable income.

To qualify for the 1040 form individuals also has to have no advance earned income tax credit (EITC), and their taxable income for 6 months must be no more than 50,000. The next tax form provided for the purpose of filing taxes is known as the 1040A for. This form has slightly more detail to it that the 1040EZ form. Individuals who do not have any itemized deductions or a net income more than 50,000 meet the qualifications under the conditions of this form. These individuals must also claim only certain tax credits and their income comes in the forms of tips, wages, salaries, interest or ordinary dividends, capital gains, fellowship grants, annuities, pensions, or unemployment.

The other tax form is known as the extended version of 1040A which is called Form 1040. Individuals who do not meet the qualifications of 1040A are required to use 1040. It is recorded that nearly 3/4 of the American economy use this form, even with all of the qualifications of 1040A. There are a certain number of requirements a person needs in order to use this form. The last form ideally used to record revenue to the IRS is known as the 1040PC form. This is a special version of a tax return that is generated by  certain income tax software such as Tax Brain, or Turbo Tax. IRS computers translates the information of this software and it has a shorter application process compared to  the regular 1040.

Although these are the four frequently applied tax forms. Reports indicate that the Internal Revenue Service will showcase a release of additional forms within the next couple of years. This tax forms will mostly apply to business corporations as preventative measures to bridge the escalating tax gap. The tax gap is identified as the taxes that are owed verses the taxes that are paid. There has been a growing problem to resolve the tax gap presented from individuals and business who evade their tax obligations.