27 Jan The Different Types of Tax Forms Explained
Tax forms are government documents that the IRS requires in filing your taxes. The more detailed your finances are, the more forms you may be required to fill out. There are several types of tax forms; the following are explained below:
- The W-2 Form is a form that is sent by your employer. This indicates your gross wages, which is the amount before tax deductions. Your withholding tax or any taxes that were withheld, such as federal, state, local, and Box 12, which is your healthcare, is also indicated in your W-2 form.
- The 1099 Form you receive from working by working as a freelancer or independent contractor. Similar to the W-2 form except it does not include withholding taxes.
- The 1098-E Form is for those that have a student loan. This form includes the interest that has been paid throughout the year. This is important to note because you may be qualified to deduct that interest on your tax return, this is considered an above-the-line deduction that does not need to be itemized.
- Then there are the 1040 Forms, there are eleven of these forms, 1040, 1040A, 1040EZ, 1040NR, 1040NR-EZ, 1040C, 1040ES, 1040SS, 1040PR, 1040V, and 1040X. Each has a different use and purpose.
- 1040 Form is all-inclusive and is the longest form. It allows the taxpayer to itemize their deductions to lower their bill. There are many reasons why a taxpayer is required to use this type of form – they have a yearly income of more than $100,000, they are qualified for retirement plans, or need to make excess advance premium tax credit repayments are the most common reasons.
- The 1040A Form is the simpler version of the 1040 Form, you can claim the standard deductions and will no longer need to itemize the deductions.
- The 1040EZ Form is shorter and you will no longer need to itemize. It is for a yearly income of less than $100,000, single or married, but are filing jointly. No dependents can be claimed with the 1040EZ and can not be used for those that are blind or over 65 years old.
- The 1040NR and 1040NR-EZ Forms are for non-resident aliens living in the US.
- The 1040 C Forms are for aliens that are leaving the US that are required to pay their taxes for the entire year.
- The 1040ES Forms are usually filed by people who have investments, self-employed or are landlords. This is an estimated payment that is usually more than $1000.
- The 1040SS Form is in English and the 1040PR Form is in Spanish. These forms are for self-employed people living in territories such as Guam and Puerto Rico.
- The 1040X Form is to amend taxes that have already been filed.
- The last one is the 1040V Forms which are used to send payments to the IRS. It is filed and mailed with the full payment; this is known as a ‘payment voucher’.
If you have any questions on other kinds of support you can get when it comes to your taxes, we invite you to contact the Golden Tax Relief team.