Tax season is rolling around again, and it can be overwhelming if you’re not working with an accountant. While working with a certified and experienced tax professional is always recommended, many people successfully file their tax returns themselves.
In Naperville, accounting services by Odoni Partners will help you file on time and get your maximum refund. But, before you file, whether you’re working with a pro or a free filing tool like TurboTax, it’s essential to understand what these forms are and why you might need them.
Anyone filing income taxes will be familiar with one of the below forms. Regardless of whether you’re filing employee, self-employed, or government income, you will need to file some variation of the 1040 form.
Form 1040 is your primary federal income tax form that tracks what you made, what taxes were withheld or paid quarterly, any deductions or credits you may have, and determines how much you owe the IRS (or how much they owe you for your refund!).
The form 1040-SR is an alternative to the regular 1040, specifically available to seniors. Those over 65 will enjoy this document that is easier to understand and documents individual sources of retirement income like social security, IRA distributions, annuities, investment income, or pensions.
When you work as an employee for a company, you’ll need to ensure you’ve filled out and received the following forms.
The W-4 form is where you claim your filing status to determine how much tax gets withheld from your checks. You’ll fill this form out any time you start a new job, updating it with significant life events such as having a baby, getting married, or a death in the family.
The W-2 form shows how much you paid in taxes for the fiscal year and how much you made in total. All employers have until January 31 of each year to get you this form.
When you’re self-employed, taxes work a little differently. Rather than having the money withheld, you need to save it and pay your estimated taxes, usually every quarter.
Like the W-4 form, a W-9 is where you submit your tax information to the person contracting you for work. It should include your current address, filing status, SSN or EIN, and more.
If you’re a contractor, sole proprietor, or otherwise made $600 or more of taxable income and needed to fill out a W-9, then you’ll be receiving a 1099-MISC around the same time you get a W-2.
No doubt, at one point, you’ve filled out at least one of these most standard tax forms. Filing your taxes can be time-consuming and lead to headaches if you’re unsure what you’re doing. After all, you don’t want to miss out on premium tax credits and more opportunities. Call the Odoni Partners team today at (312) 440-0960 for a free estimate if you need tax planning services!