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Tax Forms 2006

Tax forms are forms that you fill out and return to the Internal Revenue Service to report your financial information to the state and to determine the amount of tax you owe.

If you live in the United State then you pay taxes. The Internal Revenue Service is who manages the division of the government that deals with taxes. You fill out certain forms put out by the Internal Revenue Service and then return them to the state with your payment or you will be issued a return because you actually overpaid your taxes that year by having too much taken out of each paycheck or getting tax cuts.

Depending on your financial situation and your tax determination you will figure out which tax form you need to fill out. If you are a business you will file different taxes than if you are filing as an individual. Which one you use will also be determined by if you are itemizing your expenses and income or not.

The most well known and most used tax form is the 1040. The 1040 is an individual income tax return. This form is used by an individual who will not be itemizing their income and expenses.

The 1040A is also well known. It is a short version of the 1040. The only people that can use the 1040A are people that make less than one hundred thousand dollars in that tax year. Also only people taking the standard deduction and not itemizing their deduction can use this form.

A tax form used by non profits to become exempt from tax is form 990. Form 990 is called Return of Organization Exempt from Income Tax. Basically any tax exempt or non profits still have to report their income and expenses even if they are going to be exempt from paying taxes on the money they made.

1040NR is a form used for people who are not actually residents of the United Sates that are filing tax returns. Any non residents that have not been in the United Sates for more than 5 years should be using this form. Even though they are not residents of the United States they generally will still file taxes.

As you can see there are several kinds of tax forms. The ones listed are only few of a very long list. If you need help figuring out which tax form you need to use contact the IRS or look online.

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