IRS Form 1040: U.S. Individual Income Tax Return
IRS Form 1040 is the standard form used by U.S. taxpayers to file their annual individual income tax return. It's how you report your income, claim deductions and credits, and determine if you owe taxes or are due a refund.
IRS Form 1099: Miscellaneous Income
IRS Form 1099-MISC is a form used to report payments made to individuals or businesses who are not employees. Understanding this form is crucial for both businesses making payments and those receiving them.
Reasonable Collection Potential (RCP)
Reasonable Collection Potential (RCP) is the IRS's assessment of your capacity to pay back your tax debt. It plays a crucial role in determining payment plans and settlement options.
Shared Responsibility Payment (SRP)
The Shared Responsibility Payment (SRP) was a penalty for not having qualifying health insurance under the Affordable Care Act (ACA). It's crucial to understand how it worked, especially if you filed taxes during the years it was in effect.
Self-Employment Tax
Self-employment tax is a tax primarily for those who work for themselves, and it covers Social Security and Medicare taxes. Understanding it is crucial for freelancers, contractors, and small business owners.
Statute of Limitations on Tax Debt
The statute of limitations on tax debt is a time limit the IRS has to collect taxes you owe. It's important to know how this works because it can affect your financial obligations.
Tax Adjustment
A tax adjustment is a change made to your initial tax calculation, either increasing or decreasing your tax liability. It's important to understand why adjustments occur and how they can affect you.
Tax Deferment
Tax deferment is a way to postpone paying taxes on income or investment gains until a later date. It can be a useful tool for long-term financial planning.
Tax Forgiveness
Tax forgiveness, also known as tax debt relief, offers ways for some taxpayers to reduce or eliminate their tax debt. It's not automatic, and it often depends on your specific financial situation and ability to pay.
Innocent Spouse Relief
Innocent Spouse Relief is a way the IRS allows you to be freed from responsibility for tax errors made by your spouse (or former spouse) on a joint tax return. It can protect you from hefty tax bills and penalties.