IRS Tax Forms Used to Report Your Income

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IRS Tax Forms Used to Report Your Income

The basic individual income tax form is the 1040. Beginning in the 2018 tax year, the shorter, simpler 1040A and 1040EZ are no longer available; the shortened and simplified 1040 takes their place. The 1040 now includes a new set of six schedules on which you will record adjustments, credits, taxes, and other information.

Things To Know

  • The 1040 is the basic tax form used.
  • Form 2439 and 4952 are used for capital gains and interest, respectively.

Form 2439

If your investment company or trust had capital gains it did not distribute, you should have received Form 2439. You should report the amount on this form on your 1040. You may be able to receive a refund or credit for the taxes your investment company paid on these gains.

Form 4952

If you had interest expenses related to your investments, another form to remember is Form 4952. The purpose of this form is to calculate the amount of investment interest expense you can deduct on your tax return. Investment interest is interest paid on loans for property you hold as an investment. This does not include home mortgage interest. It is important to note that the term property here does not mean real estate. It refers to any capital assets you are investing in.

The IRS tries to make it easy for you to break down your various sources of income and expenses using separate forms called schedules, which become part of the IRS 1040 and respective forms.