Tax Forms

Form 1040 – Use this form to report our earnings. Form 1040 contains taxpayer personal information, filing status, exemptions and adjustments, sources of income, and standard deductions and credits. Form 1040 has few other versions:

  • 1040A (if you make less than $100,000, do not itemize deductions)
  • 1040EZ (filing as single or married filing jointly, no dependents, earned less than $100,000, under 65 years old), or 1040ES (for estimated tax payment including 4 payment vouchers). This form has also close to 20 Schedules that include additional information about other gains or losses or itemized deductions.

Form 1098 – Many forms of tax deductions require one of the 1098 forms. These forms have to be filed by the following recipients:

  • 1098 – Mortgage Interest Statement – received by homeowners as a summary of principal and interest paid on their mortgage and other mortgage-related fees.
  • 1098E – Student Loans Interest Statement – form filed by the institutions providing financing as well as students receiving help; it indicates amount of loans paid and interest paid on those loans by the students.
  • 1098C – issued to individuals making charitable donations of Motor Vehicles, Boats, and Airplanes.
  • 1098T – Tuition Statement enlisting expenses related to college tuition.

Form 1099 – The 1099 tax form is often used by independent contractors, freelancers, or lottery winners. Different variations of this form are attached to income tax return to account for income received from sources other than wages. There are over 20 variations of 1099 form, some which include:

W2 – American employers are required to file the W2 form with Social Security Administration (SSA), who later reports to the IRS, and send a copy to their employees. This form is used by the employees to file their personal incomes tax returns, and includes information about compensation received and contributions made to Medicare and social security taxes. Employers have to provide the form by January 31st allowing their employees enough time to prepare personal returns. Individual employees’ W-2 forms are sent to SSA together with W-3 (summary of all employees), and W-2 copy A.

W4 – The W4 form determines amount of federal income tax withheld from a paycheck by the employer. Withholdings are based on worker’s family status (single, married), number of dependents, additional income, and itemized deductions. Any of the categories can be adjusted during the year to better reflect changes to workers’ situation and withhold appropriate amount. To make sure the correct amount is withheld, IRS offers withholding calculator for more accurate computation.

Form 1065 – If you conduct business as a partnership, you will most likely have to fill out tax form 1065. U.S. Return of Partnership Income details business activity for the tax year and once profit or loss is determined, it is transferred into partners’ individual tax returns. Partnership types required to file Form 1065 include: domestic general partnership, domestic limited partnership, domestic limited liability company, domestic limited liability partnership, and foreign partnership (for other forms of partnership, check with your accountant). In its simplest form, the partners have to show income generated and deductions (costs) incurred during the year and answer partnership related questions in Schedule B. Depending on the partnership structure and revenues, the partners might be required to fill out the remaining pages of the form, namely Schedule K, L, M-1, and M-2.

Form 1120 – The U.S. corporations use tax form 1120 to file tax your returns. It details sources of income, deductions in form of all the expenses, and tax payments and credits. The form comes with additional sections, which include: Schedule C (dividends and special deductions), Schedule J (tax computation and payments), Schedule K (additional information), Schedule L (balance sheet per books), Schedule M-1 (reconciliation of income/loss per books with income return), and Schedule M-2 (analysis of unappropriated retained earnings per books).

1120S – The 1120S tax form is used by S Corporations for file annual tax returns. S corporations differ from regular corporations in the way they are taxed: regular corporations are taxed twice, once at the corporate level, and once at the individual level (after the gains or losses were passed on the shareholders); S corporations are taxed only once, at the individual level. Form 1120S is used to determine profit or loss that is later passed on the shareholders who include it on their personal tax return. There is no corporate taxation. This form includes all sources of revenue, costs (deductions), and tax and payments. Additional sections may be required to complete this form; they include Schedule B (other information), Schedule K (Shareholders’ pro rata share items), Schedule L (balance sheet per books), Schedule M-1 (reconciliation of income/loss per books with income/loss per return), and Schedule M-2 (analysis of accumulated adjustments account and undistributed taxable income previously taxed).

1041 – Whoever establishes estates or trusts for other individuals, places them in the management of fiduciaries. The fiduciaries are required to file Form 1041 that is the U.S. Income Tax Return for those instruments. Some of the trust types that file this form are: decedent’s estate, pooled income fund, bankruptcy estate (Chapter 7 and 11), and trusts (simple, complex, qualified disability grantor type, or electing small business). It is necessary to report any gains or losses, charitable deductions (Schedule A), income distribution deduction (Schedule B), tax computation (Schedule G), as well as any payments made to the beneficiaries.

Form 2441 – Child and Dependent Care Credit helps to determine a credit (if any) for child or a dependent care received during a tax period. Form 2441 is attached to Form 1040, 1040A, or 1040NR and can lower your tax liability. It relates qualified expenses for each individual receiving help in a given year with your income. The most important parts of this form are proper distinctions of a qualified person and qualified expenses. For more details, refer to the IRS website. A worksheet on the first page guides your calculations to determine the amount that you may qualify for. It is then transferred to the appropriate field on the 1040 forms mentioned before (detailed instructions are mentioned on the Form 2441) and any credit directly lowers your tax obligations.

Form 8863 – Education Credits calculates credits that can be taken for expenses related with post-secondary education. The qualified expenses relate to tuition, enrollment fees, and books and supplies expenses among others. There are two credits that can be taken: American Opportunity (refundable) and Lifetime Learning (nonrefundable). They are slightly different in benefits they offer and limitations they carry. It’s recommended to calculate the amount of credit given by any of the two, and then choose the one providing greater benefit. A student cannot claim the two credits mentioned on the same return, but can alternate between the credits in different years.

Form 8917 – Tuition and Fees Deduction permits to deduct qualified expenses related to attending a post-secondary institution (college, university, or some type of vocational school). Expenses to include on Form 8917 are tuition and fees related to registration and attending the school. They exclude room and board, non-credit courses, books and necessary supplies (unless required as a condition to attend or enroll the school). This benefit is offered to the person filing taxes, a spouse, or a dependent student (some restrictions apply). One very important aspect to keep in mind is that potential benefits of Form 8917 cannot be claimed at the same time as the potential credits on Form 8863 in the same year for the same student. The form itself is very short with clear instructions how to calculate the benefits and how to transfer that information to Form 1040 or 1040A.

Form 1116 – Foreign Tax Credit. If you paid taxes in a foreign country, you may qualify for a tax credit here in the United States. This credit may be based on income generated from passive (i.e. dividends, royalties, interest) or general (wages, salary) returns, section 901(j) income (from sanctioned countries), lump-sum distributions, or re-sourced by treaty. You also have a choice to consider the taxes paid as deduction and provide applicable information on Schedule A of Form 1040. The choice between the two options is based on the rules governing credits and deductions, each having its pros and cons. Few things to keep in mind are exchange rates and that not every category of tax paid is eligible for a credit.  Full instructions are included with the Form 1116 download.

Form 2555 – U.S. citizens or U.S. residents who live and work abroad can file Foreign Earned Income Form to avoid double taxation can fill out Form 2555. To qualify, you have to (1) meet the tax home test (you reside abroad the full 330 days) and (2) bona fide residence test (Part II of the form) or physical residence test (Part III). For 2012, the total amount of foreign income available for exclusion is $95,100. In Part VI, you can claim the Housing Exclusion and /or Deduction. Those expenses must be reasonable and include rent, utilities, property insurance, and repairs among others. There are limits to the exclusion amount (up to 30% of the income you exclude with few exceptions for cities with the higher cost of living). Housing Deductions are calculated in Part IX.

A much simpler version of this form is Form 2555-EZ Foreign Earned Income Exclusion. To qualify you have to meet the following criteria:

  • Be a U.S. citizen or a resident alien.
  • Earn income in a foreign country.
  • Income no greater than $95,100 (2012).
  • File a calendar year return covering a 12-month period.
  • Have no self-employment income.
  • Have no business or moving expenses.
  • Have no foreign housing exclusions or deductions.

Form 3903 – Moving Expenses. In the current state of the economy, many Americans elect to move elsewhere to look for opportunities. If you’re one of them, you may qualify for deductions by filing Moving Expenses on Form 3903. All three conditions must be met in order to qualify:

  • Start of work test – deduct expenses incurred within one year from the time your employment began.
  • Distance test – new job is located minimum 50 miles more than the distance between your previous residence and old job.
  • Time test – must be employed full time minimum 39 weeks in the first 12 months once you arrive at the new location.

Exceptions apply to all three tests. Deductable expenses include cost of packing, car rental, lodging, and storage, among others. Refer to the IRS website for the list of restrictions.

Form 1310 – Refund Due a Deceased Taxpayer. With Form 1310, if a person who expects to receive a refund check dies, a tax refund check can still be issued. In that situation, Refund Due a Deceased Taxpayer can be issued on behalf of the deceased to either surviving spouse or a court-appointed representative. In the second scenario, an official copy of the court order is required with Form 1040, 1040A, 1040EZ, or 1040NR; family ties such as parents-children or verbal appointments to be a representative do not constitute as valid. In those two cases, Form 1310 does not have to be filed. Otherwise, you will be requested to answer additional questions regarding the refund in Part II.

Form 2106 Employee Business Expenses and Form 2106-EZ Unreimbursed Employee Business Expenses – If you were employed during the year and had job-related expenses you can claim them on Employee Business Expenses form as deductions. Typical expenses tied to a job are: use of your vehicle for business, travel, transportation, meals, entertainment, or incidental expenses. IRS requires you to keep all the records related to your deductions and receipts for lodging costs and any other expenses over $75. If you do not have any receipts, you can claim deductions under allowance method, which assigns particular values to different expenses. You may qualify to file Form 2106-EZ Unreimbursed Employee Business Expenses if all the following conditions are met:

  • Your employer does not reimburse you for your work related expenses.
  • The expenses are ordinary and necessary.
  • You are applying standard mileage rate for vehicle expenses.

Form 4684 – Casualties and Thefts. Every year natural disasters strike the United States often eradicating the properties and personal possessions worth years of hard work. The IRS created Casualties and Thefts Form 4684 to mitigate losses caused by those circumstances. Hurricane, fire, flood, or a Ponzi scheme is a basis for filing Form 4684. The form requires description of the property lost, cost basis, insurance amount received (if any). In the event where your reimbursement is more than the value of the property in question, this might be considered as gain and you might have to pay taxes on the difference; payment of those taxes may be postponed. If the replacement of damaged property or goods carries similar value, there is no gain to report.

Form 8283 – Noncash Charitable Contributions. Every year millions of Americans help one another by making donations and now those gifts can be accounted for on Noncash Charitable Contributions form and a deduction can be claimed. Form 8283 is required if the value of donated goods surpasses $500 and calls for listing of the donated goods, acknowledgment by the organization receiving donations, and a signature of an appraiser if donated goods are valued more than $5,000. The appraisal cannot be done more than 60 days before the donation. Exclusions include volunteering work or clothes and household items that are not in good used condition (unless their value is over $500 and you obtain an appraisal).

Form 8822 – Change of Address. This form should be used if you move and want to make sure the IRS has your most current information. People usually change their addresses at the post office that later notifies the IRS, but you can skip the “middleman” and go straight to the source. It is really recommended if you expect any correspondence or refund from the IRS and want to make sure it doesn’t get lost. Businesses facing similar scenario should use Form 8822-B. Attached to the form are instructions that include address to where to send the form; they vary based on your old state of residence.

Form 4972 – Tax on Lump-Sum Distributions. Recipients of lump-sum payouts who were born before January 2, 1936 might qualify for reduced taxes on those payments. Those payouts might include annuities, pensions, qualified employee plans, or inheritance of this type of plans. For that purpose the IRS created Form 4972, Tax on Lump-Sum Distributions. The first part of the form asks a series of questions that determine whether or not an individual can use this form. Those who qualify can choose between a 20% capital gain payment, 10-year tax option, or both. This form should accompany Form 1040, 1040NR, or 1041. Additionally, you should receive form 1099-R specifying the payout amount to report.

Form 1099-R –  Distributions from Pensions, Annuities, Retirement, or Profit Sharing. If you received payments from or contributed to a retirement-type account, you might have to file Distributions From Pensions, Annuities, Retirement or Profit-Sharing Plans, IRAs, Insurance, Contracts, etc. The form identifies all the parties involved in the transaction, the amount paid out (or contributed) and taxable. In case the taxable amount in not determined, it is a taxpayer requirement to calculate that amount. Section 7 of the form determines the type of distribution received; it might get confusing, as there are 25 options to choose from. Detailed explanation of those categories and potential exceptions can be obtained from the instruction document from the IRS website.

Form 4562 – Depreciation and Amortization. If you purchased a property to do business, you can file Depreciation and Amortization form to recover some of its costs. Both tangible and intangible properties can be written off; some of them include: buildings, vehicles, equipment, furniture, patents, and copyrights. If you operate more than one business, you have to file a separate form for each business. Often associated with Form 4562 is Section 179 that provides additional specifications as to which products can be amortized or depreciated. Although no particular paperwork is required with this form, details on how you calculate different aspects of depreciation and amortization amounts should kept on file.

Form 2439 – Undistributed Long-Term Capital Gains. Among many investment options real estate investment trusts (REIT) and regulated investment companies (RIC) are popular choices. Due to their higher than average dividend payment they provide diversification to your portfolio. With that come tax implications as some of those companies might withhold long-term gains but still pay taxes on them. If you’re invested in one of those companies, you will receive a statement indicating any undistributed long-term capital gains and/or unrecaptured section 1250 gains. For individual taxpayers those numbers are to be transferred to Schedule D of Form 1040 (see the instructions included with the statement).

Form 5405 – First Time Home buyer Credit and Repayment of the Credit. This form is for those who qualified to receive a credit as first-time home buyers prior to 2011 and in some cases in 2011. It also applies to long-term residents of the same main home, but the amounts of credit differ slightly between the two groups. If you had qualified for the credit and disposed of the house in 2011, you are required to repay the credit and file this form. If you qualify for the credit, you must file your taxes on paper and attach all the corresponding documentation. If you purchased the house after 2008 and maintained it as your primary residence for at least 36 months, you do not have to repay the credit or file this form.

Form 5695 – Residential Energy Credits. Homeowners who invested in energy efficiency improvements at their homes can claim a credit. Improvements such as energy efficient windows and doors, roof, wind or solar panels all qualify. Additionally you can claim insulation material used in many improvements but not the labor cost. Be sure to enter the amounts of credit claimed in the last four years; they are additive and cannot surpass the current limit. Part II of the form takes into consideration the following investments to establish an Energy Efficient Property: solar electric, solar water heating, wind energy, geothermal heat pump, or fuel cell.

Form 8396 – Use this form to determine current year mortgage interest credit. Information you will have to enter on the form includes the amount of credit paid in a given year, credit rate (see mortgage credit certificate), and any carryover amounts from previous years. Fill out the second part of the form if you have any unused amount for the given year and determine the carry-forward amount for the next year. Once you determine the amount of credit, transfer that number onto form 1040 (line 53) or 1040NR (line 50).

Form 8949 – Sales and Other Disposition of Capital Assets. This form should be used to indicate the sale or exchange of capital assets, gains from involuntary conversion of capital assets, and non-business bad debt. The capital assets that should be considered are: stocks, bonds, and real estate. It is not necessary to use this form if you already reported real estate assets on a different form. The form is divided into two sections: short-term capital gains and losses (one year or less) and long-term capital gains and losses (assets held more than one year). Record keeping is important as the form asks for dates of acquisition and sale, purchase price, cost basis, and profit or loss on each transaction.

Form 8453 – U.S. Individual Income Tax Transmittal for an IRS e-file Return. Those who file taxes electronically and are requested to provide additional supporting documents or forms must file this form. Once the IRS receives your tax return, it will notify you and provide Declaration Control Number (DCN) necessary to enter on the form. Besides the names, address, and social security numbers, you will have to check the attachments that are included with this form; it is limited to just over 10 forms (see IRS website for the current list). You will then send the forms to the address indicated by the IRS. Should you be required to provide forms not listed on Form 8453, you cannot e-file your taxes.

Form 4868 – Application for Automatic Extension of Time to File U.S. Individual Income Tax Return. In case you’re not ready to turn in your tax returns, filing Form 4868 will give you 6 more months to complete that task. The form has to be filed by April 15, 2013 and can be done either electronically via IRS efile, by paying all or portion of your estimated liability, or sending the form by mail. The extension runs through October 15 with some exceptions for taxpayers living out of the country. Interest is due on the unpaid portion of the amount you owe until fully paid. There are also late payment and late filing penalties associated with not submitting the appropriate documents/payments on time; the maximum penalty in both cases is 25% of the amount you owe.

Form 2350 – Application for Extension of Time to File U.S. Income Tax Return. Taxpayers (US citizens or resident aliens) residing abroad who expect to qualify special tax treatment can file this form to get more time to file tax returns. If you plan to file Form 2555 or Form 2555-EZ but need additional time to meet residence test (bona fide or physical presence) to qualify for foreign income/housing exclusion, Form 2350 is your choice. This form should be filed as soon as possible in case is not approved. In general, file it on or before the last day to file taxes; taxpayers classified as “out of the country” may be granted another 2 months to file it. If you are granted an extension, you will have 30 days to file your taxes from the time you expect to meet the residence test.

Form 4768 – Application for Extension of Time to File a Return and/or Pay U.S. Estate Taxes. File this form to request an automatic 6-month extension to file the following forms:
– Form 706 – United States Estate (and Generation-Skipping Transfer) Tax Return
– Form 706-A – United States Additional Estate Tax Return
– Form 706-D – United States Additional Estate Tax Return Under Code Section 2057
– Form 706-NA – United States Estate (and Generation-Skipping Transfer) Tax Return, Estate of nonresident not a citizen of the United States
– Form 706-QDT – United States Estate Tax Return for Qualified Domestic Trusts
The form requires written explanation why the full amount of the estate cannot be paid by the due date. It should be filed on or before tax return deadline. Any underpayment is subject to interest; failure to file the estate tax return or make required payment by the due date might result in penalties.

Form 5558 – Application for Extension of Time to File Certain Employee Plan Returns. Taxpayers receiving income from employee plans who need more time to file tax returns should use this form. It can be used to request an extension to Form 5500 Series (and/or Form 8955-SSA) or Form 5330 (excise taxes). Important information required to complete this form include EIN or social security number, plan name, number, and date of plan ending year; also enter date you request the extension to expire. The form is due at your tax deadline and usually gives an automatic 3-month extension.

Form 8809 – Application for Extension of Time to File Information Returns. File this form if you need more time to file the following tax forms: W-2, 1097, 1098, 1099, 3921, 3922, W-2G, 1042-S, 5498, 5498-ESA, 5498-SA, and/or 8027. File Form 8809 as soon as you realize that you need additional time to file any of the mentioned forms. Each of those forms has its own due date by which they have to be filed. Due dates vary between the forms and how you file them: on paper or electronically. For exact due dates, see instructions to Form 8809 on You can request an extension even if you had already requested and received one. In that case, reason for an additional extension has to be provided.

Form 8868 – Application for Extension of Time to File an Exempt Organization Return. It is a two-part form for exempt organizations to file tax returns depending on the length of the extension they request. One is an automatic 3-month extension and the other additional (not automatic) 3-month extension. Automatic extension is granted if this form is correctly completed, filed, and a balance due is paid. An organization can submit this form when requesting extension for the following returns: Form 990, 990-BL, 990-EZ, 990-PF, 990-T, 1041-A, 4720, 5227, 6069, and 8870. The extension is added to the due date of each of the mentioned forms. Late payment and filing penalty as well as interest on the outstanding balance apply.

Form 8892 – Application for Extension of Time to File Form 709 and/or Payment of Gift/Generation Skipping Transfer Tax. If you expect to report generation-skipping transfer (GST) tax or taxable gifts filed on Form 709 but need more time, file for extension using form 8892. If you already filed Form 4868 for automatic extension to report income taxes and expect to owe tax for gifts or GST, use a payment voucher (Form 8892-V) to make appropriate payment. If your Form 4868 was approved, you don’t have to submit Form 8892 because the former one extends and applies to Form 709. Similar to other extension forms, this one, if granted, only extends the time to submit documents; it doesn’t extend time to make payments. Interest will be assessed on any unpaid portion of tax due; late payment and late filing penalties can apply.

Form 9465 and 9465FS – Installment Agreement Request. If you are unable to pay full amount of your tax liabilities on time, you may have to file application for installment payment. It is a simple one-page document that requires a lot of personal information. Besides standard data (social security number, name, etc) it asks for your employment contact information and banking details (if you choose electronic withdrawals). Your application is usually examined within 30 days. If approved, it carries a fee of $52 or $105 depending on the payment method you choose (electronic vs. check/money order/credit card). The fee can be lowered based on your economic situation or waived completely if you can pay the full amount in 120 days therefore eliminating the need for installment plan; contact IRS at 800-829-1040 if you qualify.

Form 656 – Offer in compromise. Taxpayers who experience economic hardships and inability to pay their tax obligations can present offer in compromise. If accepted by the IRS, you will be able to settle liabilities for less than what you currently owe. It is part of the IRS’s Fresh Start program although not everyone applying will qualify and the application fee is $150. The application is relatively elaborated, asking questions related to reason for offer, amount you offer to pay and corresponding payment terms (20% of your offer has to be made as initial payment if you choose lump sum payment), and indicate sources of funding. The offer amount is calculated on Form 433-A for individual wage earners and/or self-employed, or Form 433-B for corporations, partnerships, or limited liability companies.

Form 433F – Collection Information Statement. Taxpayers who owe more than $50,000 including interest and penalties and apply for installment payment of their liabilities, are required to fill out the collection information statement. This form should be submitted together with Form 9465-FS. The purpose of this form is to collect financial information of your assets and expenses. Information that is required include: bank and brokerage accounts and their balances, real estate owned and your equity in each property, credit cards (their limits and current balance), other assets, wages, and non-wage income. Finally, provide monthly necessary living expenses.

Form 2210 – Underpayment Penalty. Taxpayers who pay estimated taxes might occasionally underpay and face a penalty. There are several routs to go about. One is to let the IRS figure out any potential penalty payment for you. The condition is that you did not have to check box B, C, or D in Reasons for Filing (Part II of the form). Under this scenario, the IRS will send you a bill and as long as you file your taxes on time and make payment(s) by specified dates, no interest will be charged on the penalty itself. Another way to determine whether or not a payment is necessary is to answer questions on the flow chart at the beginning of the form. If you are required to pay the penalty, complete the short or the regular method to calculate its amount. See the IRS instructions to the form for information on exceptions to the penalty and a waiver of penalty.

Form 2210-F – Underpayment of Estimated Tax by Farmers and Fisherman. Legal entities as well as individuals deriving two-thirds of their income from farming or fishing should file this form if there is an underpayment on estimated taxes. If you did not pay at least two-thirds of the tax shown on your last year return or 100% of the tax of the prior year’s return, you must pay the underpayment penalty. The first part of the form, Reasons for Filing, determines who will calculate the amount of the penalty. If you selected options A or B, you are responsible for the calculations. Otherwise, leave the Penalty line on your tax return blank and the IRS will calculate it and send you a bill. Form 2210F is much simpler than Form 2210 in calculating the underpayment amount and the penalty. Similarly, there are exemptions and waivers of the penalty.

Form 4137 – Social Security and Medicare Tax on Unreported Tip Income. Employees who received cash or charge (credit/debit card) tips of more than $20 in a calendar month but did not report it as income should file this form. Its purpose is to determine social security and Medicare taxes on those unreported tips; include any allocated tips from W2 form. Form 4137 is very straightforward and walks you through all the calculations in order to determine the proper amount of social security and Medicare taxes you owe. There is a penalty for willful neglect to report tip income, which is 50% of the social security and Medicate tax you owe on those tips. Once you file this form your social security records will be updated to reflect those amounts when calculating your benefits.

Form 4797 – Sales of Business Property. The IRS identifies the following reasons that require filing Form 4797:

  • When you sell or exchange a property that is, used for business purposes, depreciable or amortizable, used in excavation of minerals (oil, gas, geothermal, other), or classified as Section 126 property.
  • The disposition of noncapital assets.
  • The disposition of capital assets not reported on Schedule D.
  • The involuntary conversion of business property and related capital assets.
  • The disposition of Section 179 property by partnerships or S corporations.
  • To determine the recapture amount of sections 179 or listed property whose value decreases to 50% or less.

This form is quite elaborate and more difficult to master comparing to other IRS forms. One reason for this difficulty is the fact that it may trigger filing other forms in order to complete it, among them Form 4684, Form 4255, Form 8824, Form 6252, or Form 8949.

Form 4835 – Farm Rental Income and Expenses. Landowners or sub-lessors who earn income by renting out their property are required to report income received on Form 4835. If you are a tenant, participating landowner or sub-lessor, owner receiving cash for flat fee, estate or trust with income and expenses from crop and livestock, or partnership or S corporation with income and expenses from crop and livestock, file the appropriate schedule on Form 1040 or Form 8825; Form 4835 not required.
The form is a worksheet divided into income and expense part that helps you determine net farm income or loss. It also instructs you where to transfer the appropriate numbers to file your taxes.

Form 4952 – Investment Interest Expense. If you had to make interest payments on your investments, that amount can be deducted or carried forward. The IRS limits the amount of deduction to the net amount of income generated by your investment. Any amount over that can be carried over to the next year, with the same rules applying to determine the maximum allowable deduction. If you meet the following three tests, there is no need to file Form 4952:

  • Interest expense < investment income from interest + ordinary dividends – qualified dividends.
  • There are no other deductible investment expenses.
  • You do not have any carryover investment interest expense from the previous year.

By meeting all three conditions, you are allowed to deduct your entire investment interest.

Form 5329 – Additional Taxes on Qualified Plans (Including IRAs) and Other Tax-Favored Accounts. Individuals receiving early distributions from certain tax-favored accounts have to notify the IRS. The additional tax payments should be reported for disbursements from the following type of accounts: IRAs, other qualified retirement plans (qualified pension, profit-sharing, or stock bonus plans such as 401(k), annuity contract, annuity plan), modified endowment contracts, Coverdell ESAs, QTPs, Archer MSAs, or HSAs. This form should be filed together with Form 1040 or 1040NR at the regular filing date. File Form 5329 by itself if you’re not required to file Form 1040 or 1040NR. The form is divided into 8 sections, each representing different scenario that may potentially trigger additional tax payment; instructions to the form are very helpful to complete the form.

Form 6251 – Alternative Minimum Tax for Individuals. Tax code provides for many deductions and credits and it is possible to drive your tax liability to zero. Well-to-do individuals might find more opportunities to engage in activities offering many of those credits and deductions. To ensure that all individuals contribute at least some portion of their earning to the government coffers, the IRS introduced Alternative Minimum Tax (AMT). The first part of the form, AMT Income, goes over a list of numerous sources of income that add up at the end. Instructions to the form help calculate incomes from events such as home mortgage interest adjustment, disposition of a property, or different investments. Second part of the form helps calculate AMT, including exemptions, AMT Foreign Tax Credit, or Foreign Earned Income. In some instances, you may have to complete the third part, Tax Computation Using Maximum Capital Gaines Rates. Transfer that information to the appropriate line on Form 1040.

Form 8332 – Release/Revocation of Claim to Exemption for Child by Custodial Parent. The purpose of this form is to allow the custodial parents determine whether or not they want to claim an exemption for the child. Custodial parent is the one with whom a child spent/lived more nights during the year. In case the child spent equal number of days with both parents, the one with higher adjusted gross income is considered custodial. Custodial parents can use Form 8332 to release a claim to exemption allowing the non-custodial parent to claim the credit. They can also revoke a prior release of claim to reclaim the exemption. The form is very simple, asking the custodial parents to release of claim for the current year, future years, or revoke of release of claim for future years. Special rules apply for children of parents who get divorced or separated.

Form 8582 – Passive Activity Loss Limitations. Noncorporate taxpayers (individuals, estates, trusts) use Form 8582 to calculate any passive loss activity (PAL) that occurred in the current year as well as unallowed amount from the prior year. PAL includes activities in which you did not materially participate as well as rental activities. The IRS offers broad description of passive and rental activities, exceptions, and special allowances. PALs can only offset loses from passive activities.

The form is divided into four parts that include: passive activity loss, special allowance for rental real estate activities with active participation, allowance for commercial revitalization deductions from real estate activities, and total losses allowed; it also includes seven worksheets. Before filing Form 8582, make sure you qualify for it by reading the instructions to the form to determine whether your business activity is passive or not and if you are considered materially involved; the instructions also cover former passive activities and disposition of passive activity.

Form 8606 Nondeductible IRAs – Several types of contributions, conversions, or distributions from IRA accounts have to be reported to the IRS. The IRAs accounts that fall under the obligations of this form may include traditional, SEP, SIMPLE, or Roth IRAs. File Form 8606 if the following scenarios occurred:
– nondeductible contributions to Traditional IRAs
– distributions from Traditional, SEP, and SIMPLE IRAs
– conversions from Traditional, SEP, or SIMPLE IRAs to Roth IRAs
– distributions from Roth IRAs
The form should be filed together with your Form 1040, 1040A, or 1040NR. If you’re not required to file any of the 1040 forms, sign and send Form 8606 to the IRS at the regular filing time.

Form 8615 Tax for Children Who Have Investment Income of More Than $1,900 – Children who have investment income and meet certain conditions must file Form 8615. Investment income considered includes taxable interest, dividends, capital gains, rents, royalties, pensions, annuities, etc. A child that meet the following conditions, has to file Form 8615:

  • Received investment income of $1,900 or more.
  • Is required to file a tax return.
  • Was under 18 years old at the end of 2012, or was 18 at the end of 2012 and did not have earned income that was more than half of his/her support, or was over 18 but younger than 24 at the end of 2012, was a full-time student and did not have earned income that was more than half of his/her support.
  • At least one of the parents was alive at the end of 2012.
  • The child does not file a joint return for 2012.

For children younger than 18 (and certain older children) whose investment income is greater than $1,900, tax rate on that income is that of their parents if the parents rate is higher than the child’s. To calculate child’s rate, use Form 8615; instructions to the form contain worksheets to calculate child’s tax.

Form 8801 Credit for Prior Year Minimum Tax – Individuals, Estates, and Trusts. Individuals, estates, or trusts can prepare Form 8801 to calculate what portion of previously paid Alternative Minimum Tax (AMT) they can recover in the current year or carry forward to future returns. There are nonrefundable credits that apply to individuals, estates, and trusts, and refundable credits that apply only to the individuals. AMT is caused by deferral items (i.e depreciation, or other situations that do not have a permanent impact on taxable income) or exclusion items (i.e. standard deduction, personal exemption, tax-exempt interest); tax credits are only allowed for the AMT triggered by deferral items. Form 8801 is essentially a worksheet to calculate: net minimum tax on exclusion items (Part I), current year nonrefundable credits and carryforward (Part II), tax computation using maximum capital gains rates (Part III), and tentative refundable credit (Part IV).

Form 8812 Additional Child Tax Credit – Additional child tax credit is a one-page worksheet to help you determine whether or not you can claim any amount if your current child tax credit is not optimal. If you qualify for additional amount for a qualified child and do not owe any taxes, that amount may become a credit. You may have to reduce the credit if your adjusted gross income (AGI) is more than $110,00 (married filing jointly), $75,000 (single, head of household), or $55,00 (married filing separately).
To claim the additional child tax credit, complete the worksheet and carry the final amount to the appropriate field on Form 1040, 1040A, or 1040NR. Publication 972 provides more in-depth explanation and a detailed example of how to complete the form.

Form 8814 Parents’ Election to Report Child’s Interest and Dividends – Under certain conditions you can report your child’s income on your return. On the form, you first report child’s interest and dividends that will be reported on your return and then proceed to calculate tax on the first $1,900 of child’s interest and dividends. By reporting child’s income on your return, your child is released from having to file a return provided that he/she meets all of the following conditions:

  • 19 years old or younger (24 years old is the limit for a full-time student).
  • Income was $9,500 or less and limited to interest and dividends.
  • The child has to file a tax return which is NOT a joint return.
  • Income was not a subject to federal income tax withholding and no estimated taxes were paid for the child.

If you’re filing Form 1040 or 1040NR as joint return or married filing separately and your taxable income is higher than of child’s other parent, you can elect to include child’s income on your return. Do so by attaching Form 8814 to your return respecting the filing deadlines. File separate form for each child whose income is reported on your tax return.

Form 8829 Expenses for Business Use of Your Home – If you use your home to conduct business on regular basis, you can claim some expenses as deductions. The amount of home expenses that can be deducted depends on the percentage of your home used exclusively for business. There are some limits as to the maximum amount that you can deduct if your business is not profitable or the profit is small. Form 8829 will walk you through all necessary calculations to determine the deduction. First, you calculate the percentage of home used for business. Then figure out allowable deductions, calculate depreciation, and finally determine if any portion of unused deduction can be carried over to next year.

Deductions can be taken if your home is used:

  • As your principal place of business.
  • As a place where your patients, clients, or customers meet/deal with you.
  • As a separate structure used in your business activities.

Form 8880 Credit for Qualified Retirement Savings Contributions
The IRS encourages saving for retirement and one of the available tools is Form 8880 that shields portion of your income from taxation in form of a tax credit. Some qualified saving contribution plans for which this form can be applied include 401k, 403b, traditional or Roth IRAs, government 457, SEP, SIMPLE plan, Thrift Savings Plan, or 501(c)(18)(D) plan. This form has to be filed together with Form 1040, 1040A, or 1040NR. You are unable to take advantage of this credit if the following applies:
– your income was more than $28,750 (individuals), $43,125 (head of household), or $57,500 (joint filers)
– person making the qualified contribution was claimed as a dependent on someone else’s 2012 tax return, was a student, or was born after January 1, 1995
The form itself is a worksheet to help you determine the appropriate credit amount. The final amount is then transferred to Form 1040/1040Z/1040NR.

Form 8885 Health Insurance Credit for Eligible Recipients – This form is a very short worksheet to determine the amount of credit, if any, of your health coverage tax credit (HCTC). You have to determine for which months of the given year you can claim the credit (you may have qualified in some months and not in the other). There are 8 questions you have to answer and they all must be true on the first day of that month for you to claim the credit. In order to answer some questions, you have to refer to the instructions that come with the form in order to determine your availability for the following: trade adjustment assistance (TAA), alternative TAA (ATAA), reemployment TAA (RTAA), or Pension Benefit Guaranty Corporation (PBGC).
Form 8885 has to be attached to Form 1040, 1040NR, 1040SS, or 1040PR; additionally, you have to submit the following documents to verify that your insurance plan is qualified:

  • Copy of your health insurance bills or your COBRA payment coupons.
  • Proof that payments were made (payment receipts).
  • Copy of “Notice of Rights to Continue Coverage”.

Form 8888 Direct Deposit to More than One Account – If you are receiving a refund from the IRS this year and would like to have it deposited automatically in your checking or savings account, fill out Form 8888. Your refund can be split and different amounts you choose can be allocated between three different accounts (checking, savings, IRA, health savings account, Archer MSA, Coverdell education savings account, or TreasuryDirect), you can request a paper check, or purchase U.S. Series I Savings Bond of up to $5,000. If you file Form 8379, Injured Spouse Allocation, then your refund has to be deposited to a single account. IRS Tip, on occasions there are delays in processing refunds and they may be deposited in a single account even if you requested to have it split; in that case make sure the first account you list on Form 8888 is the most important and you want the refund to go there if there is a problem.

Form 8889 Health Savings Accounts (HSAs) – Health Savings Accounts (HSAs) holders are required to file Form 8889 to report the following:

  • Contributions into your HSA account by you, your employer, or anyone else.
  • Any distributions.
  • Acquisition of any interest in an HSA due to the death of the account holder.

To complete the form you may need information from Form 1099-SA and Form 5498-SA you receive from your HSA bank as well as Form W-2. The form is a worksheet from which you transfer information into your appropriate Form 1040. If you did not use up the entire amount you contributed during the year, it rolls over to the next one. It is also portable; if you change employment, the plan transfers with you to the new employer. Health savings plans and accounts is an extensive topic and for that reason the IRS created Publication 969 offering more details of any aspect of those accounts/plans.

Form 8910 Alternative Motor Vehicle Credit – If you purchased a motor vehicle either for personal or business use, you may qualify for a tax credit. First determine whether or not the vehicle qualifies and then fill out Form 8910 to calculate the amount of credit. According to the IRS, the vehicle in question is the one with at least 4 wheels and is a qualified fuel cell vehicle. For other 2- or 3-wheeled and some low-speed 4-wheeled electric vehicles see Form 8834. Additionally, you must be the owner of the vehicle (if leased, lessor qualifies for the credit, not the lessee), the vehicle was placed in service in the tax year related to the credit, you are the original owner of the vehicle and did not buy it for resale, and it is primarily used in the U.S.

Form 8815 Exclusion of Interest from Series EE Bonds – Typically all interest earned is subject to taxation but if you cashed EE series bonds or I U.S. savings bonds in 2012 some of the interest might be excluded from your income. Complete Form 8815 to determine the amount of interest, if any that can be shielded from taxation. In order to be eligible for exclusion, the following conditions must be met:

  • Bonds were cashed in 2012 and issued after 1989.
  • You, your spouse, or your dependent had qualified higher education expenses in 2012.
  • Your filing status was not married filing separately.
  • Met certain income limits based on Adjusted Gross Income (AGI).
  • $87,850 or less if single or head of household.
  • $139,250 if married filing jointly or qualified widow(er) with dependents.

Additionally, you must have been at least 24 years old at the time you acquired the bond for it to qualify for exclusion. You should keep records related to qualified payments related to higher education and any operation involving bonds.

Form 8862 Information to Claim Earned Income Credit after Disallowance – Individuals who qualify for Earned Income Credit (EIC) and either:

  • Want to take it now and met all the requirements.
  • The EIC was reduced or disallowed for any reason should file Form 8862 and attach it to the tax return.

There are several situations in which you can still take the EIC and not file Form 8862. Under certain circumstances, you may be disqualified from taking EIC for a period of time. The form asks questions related to the reasons of your EIC disallowance, details regarding the qualifying children, and living situation of filers without qualifying children. For any additional questions regarding EIC, refer to Publication 596 about Earned Income Credit.

Form 8839 Qualified Adoption Expenses – Form 8839 allows you to deduct certain credits and benefits related to child adoption from your income and you can receive a refundable credit even if you owe no tax. The tax return has to be filed on paper along with appropriate adoption documentation; it cannot be filed electronically. Different documents are required depending on: domestic vs. foreign adoption, whether it’s final or not final, or if it’s an adoption of a special needs child. This year the maximum adoption credit has been settled at $12,650. The form asks to enter adopted child information, adoption credit including qualified adoption expenses, and employer-provided adoption benefits. Credit for the adoption of a foreign child can be taken only when the adoption becomes final. Adoption expenses include: adoption and legal fees (attorney, court), travel expenses, and re-adoption expenses in connection with adoption of a foreign child. Any payments received towards adoption from the employer may decrease overall adoption credit you can qualify for.