With so many different types of tax returns, tax forms and tax schedules, many people get confused as to what each tax return or form is and if they are required to file such tax return. The article below has been drafted by a Denver tax attorney at The McGuire Law Firm to outline common tax returns and give a brief description as to the return.
Form 1040 is the tax return that all individuals with taxable income must file on or before April 15th of each year. Some individuals may be able to file a 1040EZ if their circumstances allow. All income such as wages, interest, dividends, business income, rents, royalties and other income are stated on the 1040. Then the taxpayer can make adjustments to income and take the standard deduction or itemize their deductions. Thereafter, federal withholding tax is calculated and the taxpayer may be able to receive the benefit of non-refundable or refundable tax credits depending upon their circumstances. The taxpayer’s payments are applied and the taxpayer is able to see if they owe tax to the IRS or if they are due a tax refund.
1065 U.S. Return of Partnership Income
Form 1065 is prepared and filed on behalf of partnerships, which would include limited liability companies (LLC). Typically, partnerships do not pay income tax and thus the 1065 is used to pass through the income, gain, loss, credits and deductions to the individual taxpayers on Schedule K-1. The taxpayer will claim the income, loss or other items passed through to them on their 1040 individual income tax return.
1120 U.S. Corporate Income Tax Return
Form 1120 is prepared and filed for corporation. A C corporation does not pay corporate income tax on the net corporate income. A S corporation is a pass through entity like a partnership and the S corporation income is passed through to the individual shareholders on a K-1. The S corporation will file an 1120S as opposed to the 1120.
941 U.S. Quarterly Employment Tax Return
Form 941 is filed by businesses to report wages paid, federal income tax and social security & Medicare tax. There are also schedules to the 941 that may be used to report the federal tax deposits paid. Form 941 is filed quarterly in April, July, October and January (following year). The frequency of deposits is dependent upon the total tax liability.
The above tax returns are the common tax returns for individuals and most business entities. If you have questions regarding your tax return filing requirements or other tax issues, please contact The McGuire Law Firm to speak with a Denver tax attorney. All potential clients receive a free consultation to discuss your situation, needs and issues.
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