IRS Tax Forms
The Internal Revenue Services (IRS) has many tax forms depending on your business type or employment status, that one finds it very confusing when filing tax returns. This article is aimed at simplifying each of the tax forms that maybe applicable to you.
The Form 1040 is one of the most common forms you will come across when filing your tax returns. The Form 1040. U.S. Individual Income Tax Return is the starting form for personal Federal income tax returns filed with the IRS. The Form 1040 is made up of two full pages (exclusive of attachments). The first page would carry information such as taxpayer details, dependents, adjustments to income and income items. The second page would calculate tax due, allowable deductions and credits and taxes already withheld from wages. The Form 1040 also has 11 attachments called Schedules which must be attached depending on the tax payer.
Under the 1040 series there are many forms such as 1040A, 1040EZ, 1040EZ-T, 1040X etc. Each form is to facilitate specific taxpayer type. For example, a tax payer with a taxable income of less than 100,000 USD would fill a form 1040 A who chooses the standard deduction instead of the itemized deduction. A taxpayer filing as Single and Joint Filers with No Dependents would file a 1040EZ. The Form 1040X is the Amended U.S. Individual
Tax Return and should be filed in the case of there being an amendment on the Tax Return already filed.
The 1099 series is to report income which is earned not as a wage, salary or a tip. For example, a Form 1099 should be used in paying an independent contractor. In this case three copies must be made - for the payer, payee and the IRS.
The Form W2 is used to report salaries paid to employees and the taxes withheld from them. The Form W2 is also used to report FICA taxes to the Social Security Administration. The Social Security Administration would in turn report to the Internal Revenue Services of the relevant amounts. The employers must complete a Form W2 on behalf of their employees.
The W4 form is used by employers to determine the correct amount of withholding taxes to be deducted from their employee's wages. The employee must handover a completed W4 with all his/her tax information at the point of starting work at a new company. If there are changes such as filing status, a new W4 form must be handed over to employer.
It is always best that a taxpayer figures exactly which tax forms he/she needs to file in order to simplify the process and avoid unnecessary errors. Good luck with your tax returns!Source: www.bizymoms.com