Federal income tax forms
The taxes paid to the federal government for federal programs like defense and education are called federal taxes . The U.S tax code is known as Internal Revenue Code .The main purpose of this code was to provide fund to the federal government .
Federal Income Tax: The federal government laid a tax on individual income .Since the income tax from this source has higher as the percentage increases with the higher income individuals, the tax is also called as progressive tax . Most corporations have taxable income and thus the tax is laid on them too which resulted into double taxation for dividend s paid to stock holder ?s .There also provisions are made to reduce the double taxation. The unique feature of federal income tax in U .S is that all U.S citizens including those who do not live in U .S are also subjected to U.S income tax on their world wide income .
There are many federal income tax forms as per the taxes .Each form has its own title and purpose .Each applicant should fill the relative form as per the type of tax he or she is liable to. Here is the basic for some of these forms:
1. Form 990: The Title of IRS Form 990 "Return of Organization Exempt from Income Tax" and is submitted by tax-exempt organizations and non profit organizations . It gives information about the annual finance to Istle other version ,Form 990-EZ is used by organizations whose gross income is less than $100000 and total asset is less than $250000 .The other variation ,Form 990-PF is available for private foundation organizations . It is the only source for providing the public with financial information of the given organization.
2. Form 1040 series:
Form 1040 is titled as U.S Individual Income Tax Return .This form is filed by any full time individual resident U .S income tax payer .Form 1040 has many other variants.
Form 1040A is used by taxpayers whose taxable income is below $100000 who takes the standard deductions only.
Form 1040EZ is titled as Income Tax Return for Single and Joint Filers with No Dependents . It is used by taxpayers whose taxable income is below $100000 who takes the standard deductions only.
Forms 1040NR and 1040NR ?EZ are used to file returns of non resident ?s aliens.
Form 1040X is titled as Amended U.S. Individual Tax Return and is used to make corrections on Form 1040, Form 1040A and Form 1040 EZ which were filed previously.
3. Form 1065: This form is used by partnerships for filing tax returns .
4. Form 1120: This form is used by corporations for filing tax returns.
5. Form 2553: This form is titled as Election by a Small Business Corporation .
6. Form 2555: This form is titled as Foreign Earned Income .The form is used by those taxpayers who earned income from outside sources of United States
7. Schedule D: The capital gains and losses reported in individual, partnerships and corporations uses this form .
8. W-series:
W-2 Form is titled as Wage and Tax Statement is used as information return to report wages paid to employees and taxes withheld from them . It is also used to report FICA taxes to social security administration .
W-4 Form is used by IRS of United States. The deduction of correct amount of withholding tax from employee ?s wages is done by using this form .
W-8BEN is titled as Certificate of Foreign Status of Beneficial Owner for United States Tax Withholding .Foreign individuals can certify them as non American residents using this form .
W-9 Form is titled as Request for Taxpayer Identification Number and Certification is used by third party who needs to file the information with the International Revenue Service .
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