IRS Form 1040 is used to file your individual tax return each year. You may also need to file other types of 1040 forms depending on your sources of income and the deductions you're claiming, such as Schedule A or Schedule C. Prepare for the upcoming tax
IRS Form 1040EZ was a simplified version of the 1040 designed for taxpayers with basic tax situations. While the 1040EZ was discontinued in 2018, Form 1040 has been modified and Form 1040-SR was introduced. Here's a guide to help you understand the diffe
When you start a new job, you will completeForm W-4, which is also called an Employee's Withholding Certificate. This form determines how much tax your employer will withhold from your paycheck. The amount withheld is paid to theInternal Revenue Service(IRS) using your name...
To put it simply, Form W-2 is a document used annually by individuals, the IRS, and the Social Security Administration (or SSA). It’s used for two main reasons. For one, the IRS and SSA use W-2 forms to keep track of the wages, salary, commission, and tips individuals receive th...
Like W2s, 1099 forms are considered information returns, which means they contain information about a taxpayer but do not detail tax liabilities. What is the purpose of the 1099 form? The IRS uses the 1099 to track nonemployee income, and taxpayers use it to correctly prepare and file income...
IRS published the new 2020 Version W-4 with major change: allowances are no longer used for the redesigned Form W-4. This change is meant to increase transparency, simplicity, and accuracy of the form. In the past, the value of a withholding allowance was tied to the amount of the pers...
Form W-9 is not submitted to the IRS—instead, businesses keep it and use the information provided to compile annual Form 1099-NEC. Who needs to fill them out? Most independent contractors in the US need to fill out Form W-9. When do you request Form W-9? This form should be comple...
provides information to your employer so that they can determine how much to withhold from your paychecks. This will ensure that the IRS collects federal income tax from you in an efficient manner. Keep reading to learn how the new IRS Form W-4 changes the way your tax withholding is ...
IRS Form 4562 is used to represent the Depreciation and Amortization of an asset that you have purchased for facilitating your business operations Companies can also claim Bonus Depreciation using Form 4562, although its optional Depreciation refers to the process of writing off the value of a fixed...
IRSForm W-4 is used to calculate withholding. Individuals should file a newForm W-4whenever their personal or financial situation changes. Investopedia / Nez Riaz How Withholding Allowances Worked in the Past Before 2018, an individual was required tofill out Form W-4when hired by an employer...