As we approach tax season, it is important to understand different types of tax forms, and why we need them. If you’re hiring a new employee, or trying to report your income tax returns, you have come to the right place! Tax forms are essential for all small businesses and must be filled out properly. The Internal Revenue Service (IRS) is constantly on the move and requires every small business to file their taxes. Tax forms can be complicated and cause major headaches. To make sure you are prepared for the future success of your small business, here are some of the important tax forms you will need to know about:
Form 1120 is used to report business taxes to the IRS. With these forms, you’ll report income, gains, losses, deductions, or credits associated with your business.
The 1099 form is an IRS tax return document used to report income from self-employment earnings, government payments, dividends and interest and more. Basically, a 1099 form is used to record money that an entity or person, not your employer, paid you.
Is used by U.S. tax payers and a standard IRS form used for individuals to file their annual income tax returns. It is also used to claim tax deductions and credits. It calculates the amount of tax refund or tax fill for the year.
Is a document an employer is required to send to each of their employees and the IRS at the end of the year. Also known as the Wage and Tax Statement, the W-2 form reports the employee’s annual wages and the amount of taxes withheld from his or her paychecks.
Is used by independent contractors or freelancers to estimate the federal tax they owe from their income. This is used to figure and pay your estimated tax.
This reports income taxes, social security tax, or Medicare tax withheld from employee’s paychecks. Typically, most small businesses file this form if they have employees. The 941 form is filed quarterly and is the employers federal tax return.
This form is used to apply for an employer identification number or an EIN. This is a 9-digit number assigned to sole proprietors, employers, corporations, partnerships, trusts, and other entities for tax filing purposes.
The purpose of the W-4 form is for new employment. When you are hired for a new job, one of the many documents needed is your W-4 form, which determines the amount of tax your employer will withhold from your paycheck.
Is used to apply for an IRS individual taxpayer identification number. This ITIN form can be also be used to renew an existing ITIN that is expiring or has already expired.
This document is an IRS document that is used to gather past tax transcripts that are in the IRS’s files.
This document is an installment payment plan, and IRS application form. Taxpayers who owe less than $50,000 in taxes, interest and taxes may be able to complete an online payment agreement (OPA) application.
This is a form that is filed by tax payers to request copies or transcripts of previously filed tax returns and tax information. You can request a range of different types of previously filed tax returns.
So, no matter your type of business—whether you are a blogger, online retailer, or an attorney—small business owners must file with the correct tax forms. At Vyde, it’s our goal to help you stay compliant with the IRS. Reach out to our team for any of your tax related questions.