subject: The Short And Skinny On The Federal Tax Forms You Need [print this page] No, you do not have to be aware of every tax form in the IRS's extensive database of challenging documents. When it comes to breaking the law, ignorance is no excuse, but learning the meanings of over 700 tax forms is a little much to ask. And to be fair, the government is not asking that you have that kind of knowledge. Sure, you can go to professionals, who will be able to navigate that mess quite a bit better than you, but prepare to pay at least $150-200 doing so. That could be your entire refund! No, it's best to take the strategic approach and learn only the forms that you will likely need. That will put you in a much better position to do things yourself, and pocket any of the funds you may have coming back to you. But 700 - that's a lot. Where do you begin learning the most common federal tax forms that will likely have you covered?
Why, the Internet, of course!
But be careful. Don't take just anyone's word for it. If you can't trust your judgment, it's always best to pay the money to a reputable someone who knows what they are talking about instead of suffering through an official audit. However, before you do that, check out this selection of the most commonly used federal tax forms, and see if you can't piece it together yourself.
1.Wage and withholdings: Surely you have heard of the W-2, the W-2G, or the W-4. These forms all have to do with your wages and withholdings. You will usually have your information from the previous year on one of these forms before the first month of the New Year lets out. If you keep things simple and don't have a lot of capital gains or losses to speak of, then these federal tax forms could be all you need to get the tax filing process started.
2.Income Tax Returns: If you haven't heard of the Form 1040, then you probably haven't been in the work force very long. Not to worry. You'll pick up on it fast. For those of you who have been, this should be a piece of cake. On federal tax forms such as the 1040, you have the opportunity to list your filing status (single or married), any exemptions, income and adjusted gross, as well as any taxes and credits or other taxes that you must pay in a given year.
3.Qualified Retirement Plans: Ever heard of a 401k or IRA? The government allows many opportunities for you to plan toward a financially secure future. When doing so, you may need access to Forms 5329 and 8606. These forms represent your return for an IRA/qualified retirement plan and non-deductible IRA, respectively. Don't forget to report them come tax season. Not only can these lower your gross income and decrease the amount of taxes you are now paying, they can also save you a lot of hassle, headache, and trouble in the future.
This list is hardly exhaustive, but it represents a good start in preparing you with the federal tax forms you will need to tackle the challenge of a well-equipped tax season. Best of luck and good fortunes!
