If you trade stocks, bonds or other instruments, Schedule D is for you because it is where you add up your capital gains and losses for the year. If you`re like most investors, some of your investments probably performed well and others probably didn`t. Report both: Up to $3,000 of your net losses can be deductible ($1,500 for those who are married and file separately), and Schedule D is where this mathematical magic happens. You`ll likely need information from other IRS forms called 1099s (see below) to do this. (How it works.) Form W-2 is an IRS form that your employer sends you in January or February. The W-2 shows, among other things, how much your employer paid you during the year, what you contributed to your company`s retirement savings, and what taxes are withheld for you. A copy goes to the IRS, so be sure to report this information accurately. (How it works.) There are different types of business tax returns to suit the different sizes and needs of businesses.3 minutes spent reading Joe would also have the chance to reduce his actual bill if he produced the longer 1040A. If Joe was taking a course to improve his job skills and was not paid by his employer, he could claim the education and continuing education tax credit. It is also available on the long form 1040.

The best tax message for Joe is that a loan allows you to reduce what you owe the IRS dollar for dollar. But the only tax credit listed on the 1040EZ is the income tax credit, which is only available to low-income taxpayers. Schedule C is what you use to report profits and losses from self-employment, ancillary or contract work. Here, you can also deduct expenses related to the growth and development of your business, such as advertising, home office expenses, or office supplies. (How it works.) Submit this form to the IRS before the April deadline — you can even do it online — and you`ll buy yourself a tax extension until October. Attention: You must make a good estimate of what you owe to the IRS and send some or all of the amount with your renewal application. If the estimated payment you send in April is less than what you actually owe, you`ll have to pay interest on the difference. And don`t miss your extended deadline: The IRS may charge you 5% of the amount due for each month or partial month of your late filing.

(How it works.) Retirees must use the Certificate of Source for annuity payments to determine the exact amount of federal income tax that should be withheld. The rules for these types of distributions vary, so this form is essential to correctly calculate the correct amount that needs to be paid each year. The Affordable Care Act has made health insurance mandatory on tax returns. Some people may be eligible for the premium tax credit, which helps pay for health insurance available in the health insurance market. Form 8962 is used to calculate the loan amount you receive. Keep in mind that just because you`ve received a specific income tax form in the past doesn`t mean you should use it. If your situation has changed – let`s say you now have enough deductions to make the breakdown worthwhile – submit another form. IRS forms are now available for the 2021 tax year, which is what you need to file your taxes before the April 18, 2022 tax deadline. So, opting for Form 1040A instead of 1040EZ will save Joe a packet. And there are even more opportunities for tax savings on the long form 1040.

They may not apply to Joe, but they could reduce your tax bill – if you take the time to go through each of the forms. Here are the basic guidelines for the three individual tax returns. If you have received market health insurance, you will receive Form 1095-A by mail or online at HealthCare.gov account. This is necessary before you file your tax return. The form contains tax credits on premiums used and premiums paid. What for? Form 1040EZ offers Joe no valuable tax relief found on the other two tax returns. IRS tax forms are documents used to report certain financial transactions, calculate taxes owing, or prepare tax returns. There are hundreds of types of IRS forms, and the IRS issues many each year to reflect changes in tax regulations. Luckily, you probably don`t have to worry about most of them.

Are you interested? Look for Form 1099-INT from your bank, broker or other financial institution if you earned more than $10 in interest for the year.