The Internal Revenue Service or IRS has thousands of tax forms for different income types. If you’re new to all this taxes thing, you can be quite confused with the whole thing. However, you don’t need to learn about each one of them. What you need to familiarize and understand are the commonly used forms. Here are five of them:
Form 1040 – The Basic Tax Form
This is known as the U.S. Individual Income Tax Return and is the standard tax form for individuals who need to report their gross income. This is a long form, and you can take some time answering or filling up the form. Tax Form 1040 will allow you to claim tax credits, expenses, and other benefits.
This is the Income Tax Return for Single and Joint Filers with No Dependents. This is the simplest of all tax forms and is also the easiest to complete. This is intended for persons who are below 65 years old and are without children or dependents. To use this form, your income should be lesser than $100,000.
This tax form is intended for non-resident aliens. It is called the U.S. Nonresident Alien Income Tax Return and is a bit similar to Form 1040. If you know of a U.S. non-resident, ask him/her to file this form, especially if he/she has engaged in business in the country within the period of two years. Likewise, non-residents who have no regular business but enjoy income from various sources in the U.S. are required to fill up and submit this tax form.
This is known as the U.S. Income Tax Return for Certain Nonresident Aliens With No Dependents form. This is similar to 1040NR, except for the fact that it is shorter. This is also intended for non-residents of the United States, but it does not allow the taxpayer to claim for his/her dependents.
This form is similar to 1040 but is simpler and shorter. Needless to say, it is also easier to fill up. Form 1040A is intended for individuals of any filing status and age. Likewise, it is meant for those who want to adjust their taxable income. The downside, however, is that you are not allowed to itemize your deductions. Those with an income lesser than $100,000 can use this form.
Now that you have been introduced to the most common IRS tax forms, it is just right that you familiarize yourself with some of the forms you need to attach to your tax forms.
For itemized deductions, you need to attach Schedule A to your tax form.
If you have over $1,500 in ordinary dividends or taxable interest, you need to attach Schedule B to your tax form. Meanwhile, if you need to report loss/losses, deductible expenses, and profit, you have to attach Schedule C to the form.
For those with stock sales, the right attachment for your tax form is Schedule D, while Schedule SE is what you need if you want to find out self-employment net earnings tax due.