10 Different Types of Tax Forms and When You Need Them
It’s no secret that doing your taxes in America can be a complex process. Services abound to assist everyone from regular citizens to small businesses with their tax filings to make sure everything is accounted for and above board. Filing your taxes incorrectly can, of course, result in having to pay hefty fines.
If you do decide to do your taxes yourself, you’ll need to become familiar with the different types of tax forms that you’re likely to encounter. This article will take a look at ten of the most common and when you’ll need them.
1: Form 1040
Form 1040 is probably the most well-known tax form there is. It is also known as the US Individual Income Tax Return form. If you’re doing your taxes there’s a good chance you’ll start off with this form.
2: Form 1040EZ
This form is the “EZ” version of the above 1040. If you’re single or married with no dependents and an income of $100,000 this form could be for you. It’s a shorter and less complex option than the form 1040.
3: Form 1040A
The 1040A is shorter than the 1040 but a little more complex than the 1040EZ. Again, your income will need to be below $100,000 to use this form. You can use it to claim extra credits such as the child tax credit.
4: Form W-2
If you work for an employer and receive a wage, you’ll have seen the W-2 form. The W-2 is also known as the Wage and Tax Statement. It’s for employers and only a business that has paid out over $600 in the past year is required to fill out this form.
5: Form 1099-MISC
If you are self-employed, on the other hand, you’ll need Form 1099-MISC. Contract or freelance workers who’ve made over $600 dollars in the past year use it to calculate tax liability. It is also known as the Miscellaneous Income form.
6: Form 1098
Form 1098 is also known as the mortgage interest statement. This form is for those who are renting out a property they are still paying a mortgage on. This form is only applicable if you’ve received $600 or over in mortgage interest.
7: Form 941
Form 941 falls into the category of business tax forms. When you withhold income tax, social security tax, or Medicare tax from your employee’s paycheck, you’ll need to fill out this form. It is used to determine employers’ tax portion of these paid expenses.
8: Form 433-B
Another business-related form, 433-B is better known as a Collection Information Statement for Businesses. You’ll need to fill out this form if your business owes tax and is unable to pay it off. To learn a bit more about this form, you can follow this link: https://silvertaxgroup.com/irs-form-433-b/.
9: Form 8962
All US citizens must report their healthcare coverage on their tax returns. Depending on what coverage you have you may be eligible for something called a premium tax credit. This form helps to see whether you are, and if so, for how much.
10: Form W-4
When switching from one job to another, you’ll need form W-4. This will let your new employer know how much income tax to withhold from your salary. You may also want to complete this form each year your financial situation alters.
Different Types of Tax Forms
Of course, the above is just a sampling of the different types of tax forms you may come across. Hopefully, though, it will help you to better navigate the complex tax system. If you’re looking for more advice, see the rest of our site.