Every year, taxpayers have to deal with the hassle of filing their taxes. One of the most important—and confusing—parts of the process is choosing the right IRS tax form. In this blog post, we’ll give you a rundown of the most common IRS tax forms so you can choose the one that’s right for your individual tax situation.
There are two main types of IRS tax forms: individual and business. Individual tax forms are used by taxpayers who file as sole proprietors, partners in a business, or S Corporation shareholders. Business tax forms are used by C corporations and LLCs.
The most common individual tax form is the 1040, which is used to report your income, deductions, and credits. If you’re filing as a sole proprietor or partnership, you’ll use the 1040 to report your business income on Schedule C. If you’re an S corporation shareholder, you’ll use the 1040 to report your share of the corporation’s income on Schedule E.
If you’re filing as a C Corporation, you’ll use Form 1120 to report your income, deductions, and credits. LLCs may use either Form 1120 or Form 1065, depending on how many members the LLC has and whether it has elected to be taxed as a corporation or partnership.
The 1040 Form
The 1040 form is the most common IRS tax form. It’s used by taxpayers who are employed, self-employed, or have other income sources such as investments or rental properties. The 1040 form is used to report your annual income and calculate your federal income tax liability. If you’re filing a joint return with your spouse, you’ll use Form 1040.
The 1040EZ Form
The 1040EZ form is a simplified version of the 1040 form and can be used by taxpayers who meet certain criteria. To be eligible to use the 1040EZ form, you must:
have a taxable income of less than $100,000
claim the standard deduction
have no dependents
Be younger than 65 years old.
not be filing a return for a child who had earned income.
If you meet all of the above criteria, you can use Form 1040EZ to file your taxes. Keep in mind, however, that you may not be able to claim certain deductions or credits if you use this form.
1099 Forms
If you’re self-employed or have income from investments or rents, you’ll need to file a 1099 form. There are several different types of 1099 forms, each used to report a different type of income. For example, Form 1099-DIV is used to report dividend income, while Form 1099-INT is used to report interest income. Be sure to use the correct form when reporting your income; otherwise, you may be subject to penalties from the IRS.
By knowing which IRS tax form to use, you can make sure your taxes are filed correctly and on time. If you’re not sure which form to use, speak with a tax professional or visit the IRS Website for more information. And remember, if you do owe taxes this year, there’s no need to panic—you can always set up an installment plan with the IRS to make paying your taxes more manageable.