Here are important tax terms and forms you can download:
- Adjusted Gross Income (AGI) – AGI is a measure of income that is used to determine the amount of tax owed. It is calculated by subtracting certain deductions from total income.
- Alternative Minimum Tax (AMT) – The AMT is a separate tax system that applies to certain individuals, estates, and trusts with high income. It is designed to ensure that these taxpayers pay at least a minimum amount of tax.
- Capital Gains – Capital gains are profits that are realized when a capital asset (such as stocks, bonds, or real estate) is sold for a price that is higher than the original purchase price.
- Charitable Contributions – Charitable contributions are donations made to qualified charitable organizations. These donations may be tax-deductible, depending on the taxpayer’s income level and the type of organization.
- Dependents – Dependents are individuals who are claimed on a tax return and who receive financial support from the taxpayer. Dependents may be eligible for certain tax credits and exemptions.
- Deductions – Deductions are expenses that can be subtracted from total income to reduce the amount of tax owed. There are two types of deductions: itemized deductions and the standard deduction.
- Earned Income Credit (EIC) – The EIC is a tax credit for low- to moderate-income taxpayers who have earned income (such as wages or salary) from employment or self-employment.
- Exemptions – Exemptions are deductions that reduce the amount of income that is subject to tax. Each exemption is worth a specific dollar amount, and taxpayers may claim exemptions for themselves, their spouses, and their dependents.
- Filing Status – Filing status is a classification that determines the tax rate and tax credits that a taxpayer is eligible for. There are five filing statuses: single, married filing jointly, married filing separately, head of household, and qualifying widow(er) with dependent child.
- Form 1040 – Form 1040 is the standard individual income tax return form used by taxpayers to report their income, deductions, credits, and other tax-related information.
- Form 1040EZ – Form 1040EZ is a simplified version of Form 1040 that can be used by taxpayers with relatively simple tax situations.
- Form 1040NR – Form 1040NR is the tax return form used by nonresident aliens who have income from U.S. sources.
- Form 1040X – Form 1040X is used by taxpayers to correct errors on a previously filed tax return.
- Form 1099 – Form 1099 is a tax form that is used to report various types of income other than wages, salary, and tips. Examples include interest income, dividends, and self-employment income.
- Form 2106 – Form 2106 is used by employees to report and claim deductions for business-related expenses that are not reimbursed by their employer.
- Form 2441 – Form 2441 is used by taxpayers to claim the child and dependent care credit, which is a credit for expenses incurred in caring for a child or other dependent while the taxpayer works or looks for work.
- Form 3903 – Form 3903 is used by taxpayers to claim moving expenses that are not reimbursed by their employer.
- Form 4562 – Form 4562 is used by taxpayers to claim deductions and credits for business-related assets, such as machinery and equipment, that are placed in service during the tax year.
- Form 4797 – Form 4797 is used by taxpayers to report the sale or exchange of business property, including real estate and personal property.
- Form 6251 – Form 6251 is used by taxpayers to calculate and report the amount of AMT that is due.
- Form 8283 – Form 8283 is used by taxpayers to report charitable contributions of property, such as clothing, furniture, and art, that are valued at over $500.
- Form 8332 – Form 8332 is used by a noncustodial parent to release the right to claim a child as a dependent to the custodial parent.
- Form 8396 – Form 8396 is used by homeowners to claim the mortgage interest credit, which is a credit for mortgage interest paid on a qualified home.
- Form 8582 – Form 8582 is used by taxpayers to report passive income and losses from activities in which they do not materially participate.
- Form 8606 – Form 8606 is used by taxpayers to report contributions to traditional IRA accounts and to claim deductions for these contributions.
- Form 8812 – Form 8812 is used by taxpayers to claim the additional child tax credit, which is a credit for taxpayers with children who do not qualify for the full amount of the child tax credit.
- Form 8829 – Form 8829 is used by taxpayers who operate a business from their home to claim deductions for business
- Form 8839 – Form 8839 is used by taxpayers to claim the adoption credit, which is a credit for expenses incurred in the adoption of a child.
- Form 8853 – Form 8853 is used by taxpayers to claim the Archer MSA deduction, which is a deduction for contributions made to Archer Medical Savings Accounts.
- Form 8870 – Form 8870 is used by taxpayers to report charitable contributions of appreciated property, such as stocks and mutual funds, to qualified charitable organizations.
- Form 8917 – Form 8917 is used by taxpayers to claim the tuition and fees deduction, which is a deduction for qualified education expenses paid during the tax year.
- Form 8936 – Form 8936 is used by taxpayers to claim the qualified plug-in electric and electric vehicle credit, which is a credit for the purchase of qualified plug-in electric and electric vehicles.
- Form 8962 – Form 8962 is used by taxpayers to calculate and report the premium tax credit, which is a credit for taxpayers who purchased health insurance through the Marketplace.
- Form 8995 – Form 8995 is used by taxpayers to claim the qualified business income deduction, which is a deduction for qualified business income earned by individuals and pass-through entities.
- Form 8995-A – Form 8995-A is used by taxpayers to calculate the amount of the qualified business income deduction that is claimed on Form 8995.
- Form 8995-B – Form 8995-B is used by taxpayers to report the allocation of the qualified business income deduction among multiple businesses.
- Form 965 – Form 965 is used by U.S. shareholders of controlled foreign corporations to report the income, deductions, and credits of these corporations.
- Form SS-5 – Form SS-5 is used by individuals to apply for a Social Security number.
- Form W-2 – Form W-2 is a tax form that is used by employers to report wages, salaries, and other compensation paid to employees.
- Form W-4 – Form W-4 is used by employees to determine the amount of tax withheld from their paychecks. Employees complete Form W-4 to specify the number of allowances they claim, which affects the amount of tax that is withheld from their pay.
- Form W-9 – Form W-9 is used by taxpayers to provide their taxpayer identification number (TIN) to payers (such as employers or clients) who are required to file information returns with the IRS.
- Income Tax – Income tax is a tax that is imposed on individuals and businesses based on their income or profits.
- Itemized Deductions – Itemized deductions are specific expenses that taxpayers can claim on their tax return to reduce their taxable income. Examples include charitable contributions, medical expenses, and mortgage interest.
- Passive Income – Passive income is income that is earned from activities in which the taxpayer does not materially participate. Examples include rental income and income from limited partnerships.
- Qualified Dividends – Qualified dividends are dividends that are taxed at a lower rate than ordinary dividends. To be qualified, dividends must meet certain requirements, such as being paid by a U.S. corporation or a qualified foreign corporation.
- Standard Deduction – The standard deduction is a fixed amount that taxpayers can claim as a deduction on their tax return instead of itemizing their deductions. The amount of the standard deduction depends on the taxpayer’s filing status.
- Tax Credit – A tax credit is a reduction in the amount of tax that a taxpayer owes. Tax credits may be available for a variety of purposes, such as education expenses, child and dependent care expenses, and energy-efficient home improvements.
- Tax Exemption – A tax exemption is a reduction in the amount of income that is subject to tax. Tax exemptions may be available for a variety of purposes, such as for individuals, dependents, and charitable contributions.
- Taxable Income – Taxable income is the amount of income that is subject to tax after deductions and exemptions have been taken into account.
- Taxable Year – A taxable year is the period of time for which a tax return is filed and tax is calculated. Most taxpayers use a calendar year (January 1 to December 31) as their taxable year, but some may use a fiscal year (a 12-month period ending on the last day of any month except December).
We hope this will save you some time and money…