When you’re preparing your taxes, it can sometimes be difficult to know what forms you need to use. After all, with more than a thousand IRS tax forms that exist for reporting different types of expenses, income and financial information, it can be easy to lose track of which are which.
With this in mind, here’s a quick overview of some of the tax documents that are likely to be most important to you as you file your taxes:
- Form 1040EZ: The “EZ” refers to “easy,” as this is the simplest version of Form 1040 you’ll find. You’ll be able to use it if you do not have any dependents, are younger than 65, earned less than $100,000 and do not intend to itemize your deductions. This will give you a more streamlined way of filing your taxes.
- Form 1040A: This form is somewhere between the regular Form 1040 and 1040EZ in terms of how complicated it is. You are able to make some adjustments to taxable income (including child tax credits and student loan deductions), but you are unable to itemize deductions and must have earned less than $100,000 without self-employment income.
- Form 1040: This is the form you’ll use if you made more than $100,000, have self-employment income or intend to itemize your deductions. This is the form used by most taxpayers under the Tax Cuts and Jobs Act.
- Form W-2: This is the form you fill out to document the earnings you made in the previous calendar year. You’ll get this form from your employer. This gives you the most important information you’ll need to fill out any version of Form 1040.
- Form 1099: This category of forms, which has some variations, is used to report any income aside from salary, wages or tips. This includes work earned as an independent contractor or consultant, from rents or commissions, from royalties, from distributions from retirement or investment accounts, from capital gains or from interest earned on investments.
- Form 1098: Form 1098 is a form you’ll receive if you paid any interest on mortgages or student loans, if you paid college tuition or if you donated a vehicle to charity. All of the information you’ll need to account for these on your taxes will be made available to you via this form.
- Schedules: You may receive additional attachments you’ll need to add on to your return. Schedule A, for example, features itemized deductions, Schedule B allows you to report taxable interest or dividends greater than $1,500, Schedule C is for profits and losses from owned businesses, Schedule D is for capital gains and losses from stock sales and transactions and schedule SE is for self-employment taxes.
These are just a few examples of some of the tax forms you are most likely to encounter as you go through your tax preparation process this coming spring. For more information about these various tax forms in Hayward, CA and what you need to know about filling them out, we encourage you to contact the tax preparation specialists at Menjivar & Company CPAs, Inc. today.
Categorised in: Tax Preparation