IRS 2020 Forms, Schedules, and Tax Publications Updates

The total number of the IRS forms is over 900. Fortunately, you need to know only about a few major ones. From this article, you will learn all the most actual facts about 10 major IRS forms. We recommend you learn them before filing your taxes to avoid any mistakes.

Form 1040 and 1040-SR

Form 1040 is used by all working people of the US for reporting their income, calculating the tax refund, claiming tax credits, deductions, and tax bills. There are 3 standard schedules for filing the form. Your individual schedule may depend on your particular situation and your decision to claim certain credits and deductions. You need the standard 1040 or the senior version, Form 1040-SR. More details for both Form 1040 and Form 1040-SR are available on our website.

Schedule A

If you need to itemize your deductions, stick to Schedule A. This form will help you to reduce tax bills, which is very important. Use it for property taxes, state taxes, charitable contributions, medical expenses, and mortgage interest. Need help – use our Schedule A instructions

Schedule B

Use this form for all taxable interests and dividends that surpass $1,500 during the tax year. For any assistance with the form, use our Schedule B guide, and try to use all legal ways to cut taxable income to reduce costs as much as possible.

Schedule C

If you are a freelancer or a contractor, use this form to report all your profits and losses. It’s also used for deducting business growth and development expenses, including home office supplies expenses and advertising campaigns. Use our Schedule C instructions to file it properly.

Schedule D

Use Schedule D if you trade bonds, stocks, etc. It lets you report your capital gains and losses over the year. The size of deductible net losses is limited to $3000 ($1500 for married filing separately). For more information, use our Schedule D guide.

Form W-2

You receive this form from your employer every year from January to February. It reports on the size of your salary, retirement plan contributions, and withheld taxes. You must provide one copy to the IRS, and our W-2 guide will help you. Besides, fill a W-4 at work to reduce the withholding depending on last year’s refund size. Follow our W-4 instructions to avoid mistakes.

Form 1098

The IRS will send you one of these if you have a mortgage. This form shows your interest size ($600+) paid on the home loan within the year. You should understand that this interest is usually deductible. If you are a student, you will receive a 1098-T for reporting your tuition payments. Besides, you may receive a 1098-E to report about the interest you paid on the student’s loan. Both types of payments may be deductible. You can use our Form 1098 instructions, or 1098-T, and 1098-E guides.

Form 1099

There are 4 major types of Form 1099. All of them are used to report your income if it’s received, not from your employer. 1099-DIV reports dividends form investments, 1099-INT is for interest earned on an investment, 1099-OID is for bonds and notes purchased cheaper than their face value, and 1099-MISC (and 1099-NEC) are for other amounts derived from investments, including the money for freelance work.

Form 1040X

Use this form to report the IRS about your mistakes in any of the previous forms. Following our Form 1040X guide, you can correct all the mistakes and save your money. The only disadvantage is that you have to file it only by mail.

Form 4868

Use Form 4868 to request a tax extension until October. It requires you to pay all or a big part of what you owe to the IRS. Otherwise, you’ll have to pay the interest on the difference. Every month after the October deadline will cost you 5% of the amount you owe.

Knowledge is Free

Now you know enough information about the IRS forms to avoid any tax problems. Do your best to comply with deadlines and be calm. If you need more instructions on other forms, you can find them on our website. Did we answer all your questions? Feel free to ask and tell me about your experience in the comments.