Tax forms are legal documents used by taxpayers and tax-exempt organizations to formally report financial information to the Internal Revenue Service or other governing bodies of the United States.
All tax forms are used to report income and calculate taxes that must be paid to the federal government (as well as the local governments) of the United States of America.
The IRS, as a result of the advancements made in computer technology, typically offers two versions of each tax form: the simplified version known as the EZ model and the standard-issued tax forms. If you need legal advice and assistance, contact tax lawyers.
Examples of Federal Tax Forms:
Form 990: This IRS form is titled “Return of Organization Exempt from income Tax.” The form 990 is submitted by all tax-exempt organizations and non-profits to notify the IRS with annual financial information. The short
Form 990, known as the 990-EZ may be filed by organizations with gross receipts between $25,000 and $500,000 and total assets that are less than $2.5 million.
The Form 990 provides the public (individual tax payers and corporations) with financial information about a given tax-exempt organization; typically the Form 990 is the only source of such information. As a result, the Form 990 is used by government agencies to prevent such organizations from abusing their tax-exempt status.
1040 Series: The Form 1040 is the classic tax form used to report an individual’s personal income tax. These tax forms are the starting point for an individual’s Federal income tax returns that must be filed with the Internal Revenue Services.
Any full-time resident individual in the United States who is an income taxpayer may use the standard form 1040, however, those with uncomplicated tax returns (a lack of itemized deductions, no capital gains) may be able to use the simplified Form 1040A, known as the short form or 1040EZ. The Form 1040, which is the most comprehensive tax form, contains 11 attachments, known as schedules that may need to be filed depending on the taxpayer’s specific obligation. The attachments are as followed:
• Schedule A : IRS form, Itemizes all allowable deductions against income; instead of filling out Schedule A, taxpayers may choose to take a standard deduction between $5,700 and $15,800 (for tax year 2010), depending
on age, filing status, and whether the taxpayer and/or spouse is blind.
• Schedule B : IRS form, Details dividend and/or income generated from interest payments, and is required if either interest or dividends received during the tax year exceed $1,500 from all sources or if the filer had certain foreign accounts.
• Schedule C : IRS form, Lists income and expenses related to self-employment, and is used by sole proprietors.
• Schedule C-EZ : IRS form
• Schedule D : IRS form, Section of the 1040 tax forms used to describe the intricacies associated with capital gains and losses incurred during the tax year. Schedule D also calculates the tax amount due given the special reduced tax rates applied to capital gains and qualified (domestic) dividends.
• Schedule E : IRS form, Schedule E is used to report income and expenses arising from the rental of real property, royalties, or from pass-through entities, such as trusts, estates, partnerships, or S Corporations
• Schedule EIC : IRS form, Used to document a taxpayer’s eligibility for the Earned Income Credit.
• Schedule F : IRS form, Used to report income and expenses related to farming.
• Schedule H : IRS form, Used to report taxes owed due to the employment of household help.
• Schedule J : IRS form, Used when averaging farm income over a period of three years.
• Schedule L : IRS form, Used to figure an increased standard deduction in certain cases.
• Schedule M : IRS form, (2009 and 2010) is used to claim the up to $400 tax credit
• Schedule N : IRS form
• Schedule R : IRS form, used to calculate the Credit for the Elderly or the Disabled.
• Schedule SE : IRS form, Used to calculate the self-employment tax owed on income from self-employment (such as on a Schedule C or Schedule F, or in a partnership).
• Form 1041 : IRS form, Used by trusts and estates for tax returns
• Form 1065 : IRS form, Tax forms used by partnerships to file tax returns
• Form 1098 : IRS form, Tax forms regarded as the Mortgage Interest Statement; these tax forms are used to report interest that a taxpayer has satisfied on his or her mortgage.
• 1099 Tax Forms : IRS form, These tax forms are used in the United States income taxation system to prepare and file various information concerning salaries, wages, and tips.
As April approaches, most Americans are getting ready to file their tax returns. This is the time when taxpayers gather all the necessary paperwork and start filling in the forms. Filling out tax forms can be a daunting task, especially if you are not familiar with the tax code and the various forms available. In this article, we will discuss the essential tax forms you need to file your taxes, what each form means, and how to fill them correctly.
Form W-2: Wage and Tax Statement
Form W-2 is one of the most essential tax forms you will need to file your taxes. This form reports the total amount of money you earned during the year and the amount of federal, state, and local taxes withheld from your paycheck. If you have more than one job, you will receive a W-2 from each employer.
Box 1 of the W-2 form reports your total taxable wages and salaries for the year, including bonuses and commissions. Box 2 shows the amount of federal income tax withheld from your paycheck during the year. Box 3 reports the total amount of wages subject to Social Security tax, and box 4 reports the amount of Social Security tax withheld. Boxes 5 and 6 report the same information for Medicare tax.
You will use the information on your W-2 form to fill out your tax return, including Schedule 1 (Form 1040). If any of the information on your W-2 is incorrect, you will need to contact your employer to get a corrected form before filing your taxes.
Form 1099-MISC: Miscellaneous Income
If you are self-employed or work as an independent contractor, you will receive a Form 1099-MISC from each client who paid you $600 or more during the year. This form reports the total amount of money you earned working as a freelancer or contractor. If you received less than $600 from a client, they are not required to send you a 1099-MISC.
Box 7 of the 1099-MISC form shows the total amount of nonemployee compensation you received during the year. This includes fees, commissions, rents, royalties, and other income from a trade or business you operated as a sole proprietor.
You will use the information on your 1099-MISC form to report your income on Schedule C (Form 1040). Make sure to include all taxable income, even if you did not receive a 1099-MISC.
Form 1099-INT: Interest Income
Form 1099-INT is used to report interest income from bank accounts, certificates of deposit, loans, and other investments. If you earned more than $10 in interest during the year, you will receive a 1099-INT from your bank or financial institution.
Box 1 of the 1099-INT form reports the total interest income you earned during the year. Box 2 reports any federal income tax withheld on your interest income. You will need to report this income on your tax return even if you did not receive a 1099-INT.
You can use the information on your 1099-INT form to help fill out Schedule B (Form 1040), which is used to report interest and dividend income.
Form 1099-DIV: Dividend Income
Form 1099-DIV reports any dividends and other distributions you received from stocks, mutual funds, and other investments. If you received more than $10 in dividends during the year, you will receive a 1099-DIV from your financial institution.
Box 1a of the 1099-DIV form reports the total ordinary dividends you received during the year. Box 1b reports any qualified dividends you received that are eligible for lower tax rates. Box 2a reports any capital gain distributions you received from mutual funds or other investments.
You will need to report the information on your 1099-DIV form on Schedule B (Form 1040), which is used to report interest and dividend income.
Form 1098: Mortgage Interest Statement
If you own a home and paid mortgage interest during the year, you will receive a Form 1098 from your mortgage lender. This form reports the amount of mortgage interest you paid during the year and is used to determine if you are eligible to deduct your mortgage interest on your tax return.
Box 1 of the 1098 form reports the total amount of mortgage interest you paid during the year. Box 2 reports any points you paid to obtain the mortgage, which may be deductible. Box 3 reports any mortgage insurance premiums you paid during the year, which may also be deductible.
You will need to use the information on your 1098 form to fill out Schedule A (Form 1040), which is used to itemize deductions. The amount of your mortgage interest deduction will depend on several factors, such as the amount of your mortgage, your interest rate, and the number of points you paid.
Form 1040: U.S. Individual Income Tax Return
Form 1040 is the main tax form used to report your income and deductions and calculate your tax liability. This form is used by individuals and married couples filing jointly to file their federal income tax return.
The first page of Form 1040 is used to report your income and claim valuable tax credits, such as the Earned Income Tax Credit (EITC) and the Child Tax Credit. The second page of Form 1040 is used to calculate your tax liability, including any additional taxes you may owe, such as the Alternative Minimum Tax (AMT).
You will need to use the information from all the other tax forms we have discussed to fill out your Form 1040 correctly. Make sure to double-check your math and make sure you have included all necessary forms and schedules.
Form 1040-SR: U.S. Tax Return for Seniors
Form 1040-SR is a simplified tax form for seniors who are 65 or older. This form is similar to Form 1040 but has larger text and bigger spaces to make it easier to read and fill out. Seniors who use Form 1040-SR can claim the same tax credits and deductions as other taxpayers but may find it easier to use the simplified form.
Form 4868: Application for Automatic Extension of Time to File U.S. Individual Income Tax Return
If you need more time to file your tax return, you can file Form 4868 to request an extension of time to file. This form allows you to extend your filing deadline by six months, giving you until October 15 to file your return. However, any taxes you owe are still due by the original filing deadline of April 15.
To fill out Form 4868, you will need to estimate your total tax liability for the year and subtract any payments and credits you have already made. You can pay any taxes you owe with a credit or debit card or by mailing a check or money order to the IRS.
Filing your taxes can be a complicated process, but understanding the tax forms you need can make the process easier. By gathering the necessary paperwork and understanding each form’s purpose, you can ensure that you file your taxes accurately and on time. Remember to check the IRS website for any updates to the tax code and to consult with a tax professional if you have any questions or concerns.