What are the different types of tax forms that I need to file in the United States?

Filing taxes is a fundamental civic duty that can appear daunting due to the number and complexity of forms involved. Whether you are an employee, a self-employed individual, an investor, or an immigrant, there are a variety of tax forms applicable to your particular financial situation. This article will guide you through the various tax forms you may be required to file.

Visa Status vs Tax Forms

Before plunging into the plethora of tax forms, it is essential to comprehend why your visa status is relevant. In the United States, your visa status plays a significant role in determining your tax residency status, which, in turn, determines which tax forms you must complete and the type of income you must report.

For tax purposes, you are considered a resident immigrant if you hold a U.S. Green Card or satisfy the “substantial presence test” based on the number of days you’ve stayed in the U.S. As with U.S. citizens, resident immigrants are taxed on their worldwide income. Form 1040 or U.S. Individual Income Tax Return and other forms are typically filed depending on their financial circumstances.

You are typically designated a nonresident immigrant if you are in the United States on a temporary visa, such as a student or tourist visa. Form 1040NR (U.S. Nonresident Immigrant Income Tax Return) or 1040NR-EZ (U.S. Nonresident immigrant Income Tax Return) must be filed by nonresident immigrants and other specific forms.

Forms of Taxation Commonly Used By Employees

If you are an employee, your employer should provide you with Form W-2. It details your annual income and the tax withheld from your paychecks.

For Self-Employed Persons

If you are self-employed or an independent contractor and earned over $600 from a client, you will receive Form 1099-NEC, which reports this income.

• Schedule C (Form 1040): Generally, self-employed individuals must complete Schedule C to report business income or loss.
• For Investors Form 1099-B: If you sold stocks, bonds, mutual funds, or other securities, your brokerage firm will provide you with Form 1099-B.
• Form 1099-DIV: If you received dividends from equities or mutual funds, your brokerage firm or the company that paid the dividend will send you Form 1099-DIV.
• Form 1099-INT: You will receive Form 1099-INT if you earned $10 in interest from a bank, brokerage firm, or other financial institution.
• This form is used to report capital gains and losses resulting from the disposal of investments.
• For Immigrants Form 1040: Form 1040, the standard form for U.S. citizens, is typically filed by resident immigrants.
• Form 1040NR or 1040NR-EZ: Nonresident immigrants who meet certain criteria file Form 1040NR or the simplified Form 1040NR-EZ.

Supplementary tax forms

You may be required to submit additional tax forms depending on your situation. Typical examples include:

• If you choose to itemise deductions instead of claiming the standard deduction, you must complete Schedule A (Form 1040).
• Schedule EIC (Form 1040): File Schedule EIC if you claim the Earned Income Tax Credit.
• Form 8862: Attach Form 8862 to your return if your EITC was previously disallowed, and you can claim it again.
• Form 2441: File Form 2441 if you claim the Child and Dependent Care Expenses Credit.

Depending on your income sources, deductions, credits, and residency status, filing your taxes can require various forms. It is essential to know which tax forms apply to your situation and how your visa status affects your tax obligations. If you are unsure which tax forms to use, consider consulting a tax professional or using tax preparation software to guide you through the process. Remember that timely and accurate tax submission is an essential aspect of financial responsibility, regardless of the complexity.

Changes to Come and Your Tax Forms

Tax laws can change, and with those changes, so can the tax forms you must file. The IRS updates tax forms and instructions regularly, sometimes in response to modifications in federal law or IRS regulations. These modifications may affect tax rates, deductions, and credits and necessitate the introduction of new or revised tax forms.

As a responsible taxpayer, you must remain informed of these changes. Checking the IRS website frequently, consulting a tax professional, or using up-to-date tax software can help ensure you use the correct forms and adhere to the most recent tax laws. 

Remember that understanding and correctly completing your tax forms can help you avoid penalties, maximise deductions and credits, and meet your tax obligations on time.