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How to Understand Federal Tax Forms

How to Understand Federal Tax Forms

By on Nov 7, 2013 in Tax Preparation | 0 comments

How to Understand Federal Tax FormsUnderstanding your federal tax forms can be difficult and complicated by the fact that the tax laws can change from year to year.  There are well over 1000 tax forms to choose from including forms for income, deductions, expenses and other financial data.  Below is an overview of a few of the most common and important tax forms that you might need to complete your taxes this year.

1.  Form 1040EZ:  This simple form is perfect for individuals who have no dependents, are younger than 65, earn less than $100,000 and are not going to itemize your deductions.

 2.  Form 1040A:  This form is more detailed than the 1040EZ and allows you to make some adjustments to your taxable income (i.e. child tax credits) but is still not the right form if you are looking to itemize your deductions.

3.  Form 1040:  This form is very commonly used, specifically if you make more than $100,000, you need to itemize your deductions or need to declare self-employment status.In addition, depending on your individual situation, you may also need to use one of the following attachments to submit with your federal tax return:

  • Schedule A:  This attachment is for itemizing deductions like mortgage interest, medical/dental expenses, charitable contributions or property taxes.
  • Schedule B:  This attachment is used if you need to report taxable interest or dividends that exceed $1500 of income from a seller financed mortgage.
  • Schedule C:  This attachment is generally used for those who are self-employed.  You would use this form to report profit, loss, or deductible expenses.
  • Schedule D:  You use this form if you need to report capital gains/losses from stock sales in the tax year.
  • Schedule SE:  This form is used to help you calculate self-employment taxes.

Contact a Professional Tax Firm For Help

While this is a general overview of some of the most common tax forms used by individuals each year, there are many more forms and unique situations that require additional and more complicated forms.  It is sometimes easiest to rest easy knowing that you are submitting the correct forms and that your tax return is accurate.

Success Tax Relief is a full service tax firm that specializes in all kinds of tax support, including routine annual tax preparation.  We work with individuals and businesses all over the country to maximize your deductions and ensure that you are getting the most out of your return each year.Our experienced tax specialists work to get to know each and every one of our customers so that we can provide customized and thorough support year after year.  In addition to routine tax preparation, we also help customers prepare for audits, help solve issues surrounding back taxes and negotiate with the IRS on our customer’s behalf to negotiate settlements when necessary.  If your taxes are complicated, if you are behind on your payments or if you just would like another set of eyes to be sure that there are no errors on your return, call Success Tax Relief today at 1-877-958-6638.

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