Ten important IRS forms for meeting the 2014 tax deadline
Ten of the important forms frequently downloaded from the IRS website are:
1. Form 1040EZ is the most simplified form for filing a federal income tax return by single or married taxpayers whose annual income is under $100,000.00, who are not over age 65, whose interest income is under $1,500.00, and who are not blind.
2. Form 1040A is another short form for filing a federal income tax return when the taxpayer has deductions that fit one of these three schedules:
Schedule 1 – deduct interest or dividends.
Schedule 2 – deduct child or dependent care expenses.
Schedule 3 – deduct credits for the elderly or disabled.
Form 1040A is quite similar to Form 1040EZ, and also applies to individual or married taxpayers reporting under $100,000.00 in annual income.
3. Form 1040 is known as the long form for a married of individual taxpayer of any income level filing a federal income tax return. Form 1040 covers basically every deduction possible by allowing taxpayers to apply deductions and report income using applicable formulas chosen from a series of 13-schedules and 14-forms located on the IRS website.
4. Form 1041 is used to report Net Investment Income Tax (NIIT) to Form 1040. NITT went into effect January 1, 2013 and applies a tax of 3.8-percent to trusts, estates, and individuals whose income exceeds certain thresholds starting at $100,000.00.
5. Form W-2 is provided by employers to employees documenting earnings and taxes withheld during the calendar year and provides important information necessary for the completion of Forms 1040EZ, 1040A, or 1040.
6. Form W-9 is a request for taxpayer identification number and certification completed by independent contractors and given to a business or individual wishing to contract for their services.
7. Form 941 is the employer’s quarterly income tax return which accompanies payments to the IRS for Medicare, Social Security, and income taxes withheld from employee payroll.
8. Form 1098 reports tax credits for the charitable contribution of a motor vehicle or payments of student loan interest, college tuition, or home mortgages.
9. Form 1099 Series is used to report income that is not derived from salaries, tips, or wages, and doesn’t exceed $600.00, such as dividends, interest, and self-employment earnings. A Form 1099 is sent by the individual or business making the payment to the recipient of the income, in a manner similar to the employer reporting on employee earnings using a Form W-2.
10. Form 8941 is used to report a tax credit by small businesses or not-for-profit organizations when employer-sponsored health care is provided. This credit is intended to benefit employees earning low- to moderate-incomes, by giving their employers an incentive to write-off health care benefits.
Looking ahead, an enhanced version of the small business employer-sponsored tax credit, per Form 8941, takes effect January 1, 2014, along with the Affordable Insurance Exchange (AIE). The latter is designed to allow individuals and families to use tax credits to purchase healthcare coverage. Check the IRS website in 2014 for revisions to Form 8941 and a new form for the AIE credit.