Filling tax demands a lot of time due to the complexity of preparing and filing tax forms. You should be prepared and informed on how to file tax so that you can minimize time and effort needed to file tax.
Tax preparation is also probably one of the most paper-intensive tasks around; trying to accomplish and keep track of all the tax forms needed for tax preparation can be a challenge to even the most conscientious man. Preparation of tax is perhaps one of the most paper-intensive events which can often overwhelm you. You need to know the following about tax form management.
1. Form W-2
The form is officially known as the “Wage and Tax Statement” is a tax document which an employer sends to the Internal Revenue Services (IRS) and employee at the end of every financial year. The form includes the employee’s annual salary and the amount of taxes withheld from her or his paycheck.
You should be provided with a Form W-2 by your employer on or before January 31. The deadline will help prepare to file your tax returns before the April 15 deadline. Form W-2 includes the name of the employee, employer, wage, salary information, state, federal, and taxes withheld. You will need this information as an employee when filing our tax return in the Form 1040 series.
For federal tax returns and most state tax returns a W-2 or a 1099MISC is required. Individuals who do not attach these items are likely to prevent their tax returns from being processed or cause a refund delay.
2. Form 1095-C
The form contains vital information about the type of health care that is offered by your employer. The form is used to prove that you or your employer have complied with the Affordable Care Act. The information in the form is used when filing your tax returns or in determining your eligibility for a premium tax credit.
The form is used as a proof of “proof of insurance” for the IRS. Form 1099-MISC is used to report total annual payments made to self-employed people who received at least $600 for services rendered during the previous calendar year. This 1099 must be given or mailed to the contractor by January 31 of the following year.
3. Tax tips
You can access both the Form W-2 and Form 1095-C online. Visit the TAX FORM MANAGEMENT website for guideline and tips on how to file your return before the deadline. The tax gotten from non-qualified distributions from Archer MSAs and HSAs that are used to cover the price of over the counter medicine without a script will increase to 20 percent. Medical devices, contact lenses, eyeglasses, deductibles, and copays are not affected, nor is Insulin even if it is non-prescription.
What matters is how you understand the TAX FORM MANAGEMENT and how well you can fill yours, ‘to pay or not to pay’ is a secondary issue important for safety reasons. But if paying more helps you become familiar with your taxes now then it goes without saying that you pay much less in future.