1. Form 1040-EZ
If your tax situation isn’t complicated, you might be able to
take the “easy” route and file Form 1040-EZ. You need to meet all the
requirements, such as being under 65 years old, single or married filing
jointly, claiming no dependents, and with taxable income less than $100,000.
Other requirements apply if you want to use this simplified form.
2. Form 1040, U.S. Individual Tax Return
This is the basic IRS tax form most U.S. filers use
for their annual tax return. You might have to use this form depending on your
age, filing status and gross income. Even if you had no taxable income but are
eligible for a tax refund or credit, this might be the correct form for you. While
this form is more complicated than Form 1040EZ, it allows you to itemize
deductions as well as claim numerous expenses and tax credits.
3. Schedule A to Form 1040, Itemized Deductions
You might hear people say that some personal expenses are
“deductible” from your gross income to potentially lower the amount of taxes
you have to pay. That statement is true. And if your total deductible personal
expenses are greater than the standard deduction amount set by the
IRS, you can itemize them using Schedule A.
The schedule has seven categories of expenses, including
charitable donations, medical expenses, and mortgage interest. Strict rules
apply for calculating and claiming these deductions, however. In some cases,
you might not be able to deduct the full amounts.
You also don’t have to complete every line of the schedule.
If you don’t have expenses in a certain category, simply skip over it. Once
you’re finished, your total deduction amount is then added to Form 1040.
If you had over $1,500 in taxable interest or ordinary
dividends from your bank accounts and investments, you might have to file
Schedule B to report the amounts.
Additionally, if you have any foreign bank or investment
accounts or receive distributions from certain foreign trusts, you must report
that information on this schedule. Once completed, these totals also transfer
over to Form 1040.
5. Form 1099-INT, Interest Income
You might receive a Form 1099-INT from banks or other
financial institutions if they paid you a certain amount of interest on your
deposits. In many cases, you’ll have to pay tax on the interest the form lists
and report it on your tax return.
All amounts listed on the form need to be added to your
return. Additionally, you must prepare a Schedule B with the name of each payer
and the amount of interest received if the total taxable interest is over that
$1,500 threshold.
6. Schedule C to Form 1040, Profit or Loss From Business
(Sole Proprietorship)
If you are self-employed, you may need to file Schedule
C to report the gross profit or loss from your business. Categories of
expenses include costs like insurance, travel, meals and entertainment, taxes,
office supplies, wages, and other business-related items.
7. Form 1099-MISC, Miscellaneous Income
Self-employed people generally receive this form from each
client that paid them throughout the year. It reports the total earnings
received, and you must report that income on your tax return. As a freelancer
or independent contractor, this form replaces a Form W-2 you receive working
for a traditional employer.
Form 1099-MISC is also a catch-all for other types of income,
such as prizes, awards, and fishing boat proceeds.
8. Form W-4, Employee’s Withholding Allowance Certificate
You don’t file Form W-4 with your annual tax return
or send it to the IRS. Instead, you give it to your employer to instruct them
on how much tax to withhold from your gross paycheck and remit to the taxing
authorities. This form includes a worksheet to help you calculate the amount.
You file a new W-4 if you change employers. You can also file
a new Form W-4 with your current employer if your circumstances change, for
example, if you have a baby and want to claim an additional dependent.
9. Form W-2, Wage and Tax Statement
People often confuse Form W-4 and Form W-2. Your
employer gives you Form W-2 at the end of the calendar year to show the total
amount of tax they withheld from your paychecks.
Your employer also provides a copy of the Form W-2 to the
IRS, Social Security Administration and some state taxing authorities. These
taxing entities match up the amounts you claim as income with the amounts your
employer reports they paid you. Because your employer sends this form to the
IRS, you do not need to file it with your tax return.
The Bottom Line
No matter which forms you need to file, always make sure you use the
correct tax year versions. For example, during the 2018 tax season, file your
tax forms for the 2017 tax year. Also, keep in mind your personal situation may
change, and you might need to file more or fewer forms each
