The Most Common Federal Irs Tax Return Forms
As the tax season warms up, your mailbox will be inundated with tax forms. Although many have familiar names and numbers, there is a multitude of new schedules this year. Each one has a specific purpose and contains essential information for completing your tax return, and to know which tax preparation service to opt-in for.
Here are the most important tax forms for this year, including how to determine which ones are best for you.
You might think of this as the grandfather of tax forms; many of the other forms and appendices are linked to it. For example, the amount from box 1 of Form W-2 is reported on Form 1040, line 1. Form 1040 is a summary of your income, adjustments, deductions, taxes, and credits for the taxation year, which for most individuals is the calendar year. You must file relevant supporting forms and appendices with Form 1040, and there are many more for 2019 returns than there were in previous years.
Another version of Form 1040 is Form 1040X, which you can file when you need to modify a previously filed return. This form cannot be filed electronically. It must be mailed with a copy of your 1040 return marked “As amended,” any amended schedules, and any new tax documents showing federal source deductions.
Employers use Form W-2 to report wages and salaries as well as federal and state income tax, social security, and health insurance taxes withheld during the year. Copies of this form are sent to the employee, the Social Security Administration, the IRS, the state, the city, or the employee tax department.
This form is used to report winnings on certain amounts from gaming activities such as bingo, slot machines, keno, poker, lotteries and sweepstakes, and races. Report these gains on line 21 of Schedule 1 attached to your Form 1040.
This form is the employee’s deduction allowance certificate. When you start working for an employer, you complete Form W-4 to tell your employer the amount of tax to deduct from your paycheck, based on your reporting status and the number of qualified dependents that you ask in your statement. If your situation changes later – for example, you are getting married or have a baby – you can fill out a new W-4 to have more or less tax deducted from your salary.
There are many 1099 forms, each ending with a letter or letters indicating their specific purpose. These forms generally indicate different types of income. We have included the most common ones below;
- Form 1099-B: Form 1099-B reports transactions in stocks or bonds in a brokerage account. Transactions generally result in a gain or loss, which is reported in Schedule D with the net gain or loss reported in Schedule 1, line 13.
- Form 1099-C: Form 1099-C reports the canceled debt that may have to be reported as income on your tax return. This may include mortgage debt forgiven by a mortgage restructuring or foreclosure or the settlement of a credit card or other loan balance for an amount less than the balance owed. The taxable portion of this income is reported in Schedule 1, line 21.
- Form 1099-DIV: Form 1099-DIV reports the dividends earned, most often from a brokerage account but also from shares held directly in a company. Dividends must be declared in Appendix B, and the totals transferred to Form 1040, line 3a (total dividends) and line 3b (eligible dividends).
- Form 1099-INT: Form 1099-INT shows interest earned from banks, credit unions, or brokerage accounts. This interest can also be reported on Schedule B and the total reported on Form 1040, line 2a (taxable interest), or line 2b (tax-exempt interest).
- Form 1099-G: Form 1099-G reports certain government payments, such as a state tax refund or unemployment benefit. These amounts are reported in Schedule 1, lines 10 or 19.
- Form 1099-MISC: Form 1099-MISC indicates several different types of income, the most common being the remuneration of non-employees (box 7) for amounts over $ 600 paid to independent contractors. It is also used to report rental and royalty income, prices and rewards, medical and health care payments, crop insurance proceeds, payments to lawyers, etc.
- Form 1099-R: Form 1099-R reports pension or annuity income and distributions from an IRA. These are the same amounts that you enter on Form 1040, lines 4a and 4b. Line 4a is the total amount of distributions, and line 4b is the taxable amount.
- Form 1099-Q: Form 1099-Q reports distributions from eligible education programs, such as 529 plans and Coverdell education savings accounts. If all of your distributions from these accounts were tax-exempt, which means you used them for eligible education expenses, you do not need to report the amount anywhere on your return. Just be sure to keep good records of how you used the funds in case the IRS decides to verify your return.
- Form 1099-S: Form 1099-S report the proceeds from the sale or exchange of real estate. This is another scenario where capital gains may be involved. Whether the gain is taxable depends on the circumstances relevant to the sale.
Form 1099-SA gives detailed reports of distributions from Health Savings Accounts (HSA), Archer Medical Savings Accounts (Archer MSA), and Medicare Advantage Medical Savings Accounts (MA MSA).
Form SSA-1099 reports income from social security. The total amount and the taxable amount are declared on the lines 5a and 5b of Form 1040. Line 5a is the total amount of social security benefits paid, and line 5b is the taxable amount.
Form 1098, Declaration of Mortgage Interest, shows the amount of interest paid to the mortgagee on the real estate – usually the taxpayer’s house – as well as all the points paid on the purchase and mortgage insurance premiums. If your mortgage payments include property taxes, this amount can also be reported on Form 1098. If it does not appear on the form itself, it can be included in the transaction detail, which is frequently included with the form 1098.
Form 1098-E, Statement of Interest on Student Loans, shows the amount of interest on student loans the beneficiary paid during the year. If the student has loans from more than one source, they can receive a 1098-E from each. Interest in paid student loans is a deduction above the line shown in Schedule 1, which reduces adjusted gross income to a maximum of $ 2,500 per return.
Form 1098-T is a statement of tuition fees. It records the number of tuition fees received or billed by an eligible educational institution, the scholarships or grants that the student has received, that he studies at least part-time and that he studies higher education.
With the blizzard of tax forms that you will receive and have to fill out this year, you may feel worried or unsure about how all of these forms come together. You can always make an inquiry to a local tax preparation accountant in Queens, New York, to assist you in your tax issues.