Every year individuals receive certain statements and paperwork vital to individual or business income tax preparation and unknowingly disregard the importance of such items. While the general public is familiar with the disbursement of W-2 forms for employee wages, their release typically coincides with the beginning of tax season.
However, for small businesses and corporations the tax season is year long in regards to 941 and other forms specific to the state of the business or federal implications. Correctly monitoring these forms and clean record keeping are essential in making sure both your personal and business tax returns can and will be filed correctly.
Following are some important forms coupled with a more detailed look into what each entails for filing purposes. Also of note are some supporting documents or records which can be easily monitored during the year in order for a smooth transition to the tax form when applicable.
First, the actual tax form filled out by an individual or couple filing jointly is registered on one of a series of 1040 forms for the Internal Revenue Service (IRS). The regular 1040 is a long form typically used for more detailed returns or those individuals showing capital gains/losses or self-employment income.
The 1040A is a shorter form requiring less detail and typically no capital gains/losses. A 1040EZ form can be completed if filing individually or jointly with no dependents with usually only a W-2 income verification.
A few other 1040 tax forms
exist in the series for non-resident aliens of the United States.
Required by the IRS, employers must report all employees earnings and taxes withheld both for the applicable state and federal government. The W-2 form is used to complete this information and relay it to both the IRS and individual employees.
Commonly referred to as informational returns the 1099 series
is used to display income coming from various sources other than the primary employment. Whether an individual is an independent contractor, the beneficiary of dividends, or subject to interest income a 1099 form will be utilized.
Small businesses file the 941 form quarterly as essentially one of four smaller tax returns during the year. These forms show wages, adjustments, and the amount of taxes paid for employees during the quarter.
Some businesses file and submit these funds as payroll is completed or they can be settled when the 941 is due.
The experts at Bloch, Rothman, and Associates
can answer any questions regarding individual or business income taxes and assist with a variety of bookkeeping options. A full detailed review of your tax situation can be completed in addition to resolution issues and estate compilations. All services will be completed in a timely manner, depending on your restrictions and possible tax deadlines. Whether you need a simple explanation on a random tax form or are in need of a variety of other services our tax experts are ready and willing to assist. Call 303-321-7160 or contact us
for your initial free no obligation consultation.