Once you have ascertained that you need to file an income tax return, comes the question, “which form(s) to fill?” Whilst a number of forms which are a part of the taxation system might overwhelm the average taxpayer, generally there are only a handful of forms that need to be filled.
Tally Of The Most Requested Forms
Leading the pack is Form 1040, the individual tax payer’s Income Tax Return form. Form 1040 along with its schedules - the 1040 Schedule A (itemized deductions including medical and dental expenses, taxes paid, interest paid, gifts to charity), Schedule B (interest and ordinary dividends) and 1040 EZ (easy) (for single and joint filers with no dependants) all form a part of the top five most requested forms.
The Form 1040A, also referred to as the ‘short form’ can only be used by taxpayers whose taxable income is below $100,000 and who claim standard deduction in lieu of itemized deductions. In addition, only if such a taxpayer’s sources of income fall within the list of applicable sources can he use Form 1040A.
Next in line is Form W-4. This is the form to ensure that your employer deducts the correct amount of federal income tax from your income.
The last of the top five requested forms is the W-9. This form is collected by clients or companies who hire independent contractors or freelancers.
Forms To Go With The Main Form
Form 1040 is accompanied by eleven schedules or attachments. How many of these need to be filled depend up on the complexity of each individual tax payer’s income.
Deductions and credits sought have their respective schedules; and details of these have to be mentioned at the appropriate place in Form 1040.
For instance, Student Loan Interest deduction needs Form 1098 E, Mortgage Interest requires Form 1098, Qualified Tuition and Related Expenses go in to Form 1098 – T, and so on.
A detailed list of where to report items from 2008 Forms W-2, 1098 and 1099 in the Form 1040 can be found at http://www.irs.gov/pub/irs-pdf/i1040gi.pdf.
Apart from Form 1040 and the accompanying schedules, the IRS usually wants the Social Security Administration Form, the W-2 to be attached to the return as well.
A complete list of tax forms can be classified into forms for federal taxes and forms for state taxes. Subsequent classifications of federal tax forms are based on the series number, for instance the W Series has the W-2, W 1042-S, W-4, W-8 BEN, and the W-9. Similarly, the 1099 Series has the 1099, 1099-B and 1099-R forms.