Federal Tax Forms
IRS Tax Forms
All income generating individuals or organization in the United States of America are subjected to taxes. The purpose of which is to fund government programs that are designed to help improve the country’s economy, education, technology, social services and defense. The Internal Revenue of Services is tasked to calculate and collect these taxes.
Generally, there are three major types of taxes collected among a complex taxation system. The Income tax is deducted from an individuals’ net income after deductions. The Corporate tax on the other hand is a percentage of the organizations’ profit while the Social Security and Medicare tax is levied on individuals who are receiving conventional income for the purpose of retirement.
To collect the necessary financial tax related information, the IRS use different tax forms. Individuals and organizations are required to submit these on specific dates, like April 15 of every year for individuals. Once the required information is gathered, these are used to calculate the corresponding taxes.
Currently, there are about 800 various tax forms available to individuals and organizations for income tax return filing purposes.
When the word tax is mentioned, most people automatically associate it with numbers and complex calculations that most people opt to have their tax information and reporting done by third party tax experts so that they do not have to attend to the matter themselves. Well discuss a few of the tax forms in this article in the effort to understand the system of tax reporting a little better, although not all forms are applicable to all especially individually taxed income earners.
For individual taxpayers, the Form 1040 is used for personal federal income tax returns filing to the IRS. It contains two pages, has 11 attachments called schedules, and in most cases will need to be submitted with the Form W-2. Over 100 specialized forms are available depending on the requirements. Short versions of the Form 1040 are the Forms 1040A, which is limited to tax payers with taxable income below $100,000 with standard deductions and the Form 1040EZ forms for single and joint filers without dependents and receiving income below $100,100. These two are what we call short forms.
For U.S. Nonresident Aliens who have US source incomes use the Form 1040NR to file their Income Tax returns. The easy “version” 1040NR-EZ is used for those with no dependents.
Individuals who are self-employed and others who do not have enough income taxes withheld make use of the pay-as-you-go tax. They use the Form 1040-ES or the Estimated Tax for Individuals to be submitted quarterly for their estimated installments of annual tax liability.
For smaller nonprofit organizations with less than $25,000 in annual receipts, they are placed on a filing mandate to file the Form 990 under the 2006 Pension Bill. In addition to this, some NPO’s have several comprehensive reporting requirements and various schedules designed to help clarify disclosures.
Another type of form that was developed jointly by the US Department of Labor, the IRS and the Pension Benefit Guaranty Corporation is the Form 5500. This is an important tool for compliance, research and disclosure for employee benefit plan assurance and management. Since the year 2009, all Forms 5500 are filed on the Department of Labor’s website electronically.
There are several forms for Entity Returns. For partnerships, Form 1065 US Return of Partnership Income is used. Form 1120 US Corporation Tax Returns for C corporations and Form 1120S for the S Corporations. For estates and trusts, Form 1041 or US Income Tax Return for Estates and Trusts is utilized.
There are two Employment or Payroll tax forms used by employers and these are the Form 940, the Employers Annual Federal Unemployment Tax Return (FUTA) and the Form 941, the Employers Quarterly Federal Tax Return.
For Transfer Taxes, Gift Taxes are reported using the Form 709 or the United States Gift Tax Return while the Estate Taxes are reported through the Form 706 or the United States Estate Tax Return.
The Forms mentioned above are just few of the many forms used to report the unending taxes in the United States. There are still other tax information reporting tools like the 1098 Series, 1099 Series and their variations. The 5498 Series, W Series and all other forms
There are many taxes imposed on individuals, organizations, business and other entities based on income and transactions. Usually informational returns using these forms are done or prepared by third party to be reported to the IRS and the taxpayers. It is imperative the individual or organization must be responsible in declaring an accurate and correct amount of income or profit on the income tax return.