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14 Tax Forms You Must Understand Before Filing a Return

Look for these forms if you want to avoid costly mistakes this tax season.

By Adam Palasciano

Edited by Chris Kissell

Updated Jan. 23, 2025

Preparing for tax season can be overwhelming. However, understanding the key forms you’ll encounter can help you minimize stress and get ahead financially.

Whether you’re a seasoned filer or handling taxes for the first time, here’s a breakdown of the 14 critical forms you need to understand before hitting “submit.”

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Form 1040

Form 1040 is the basic, core document for reporting your income, calculating taxes owed, and claiming tax credits or deductions. It’s the standard form for most U.S. taxpayers and serves as the starting point for filing your federal tax return.

Understanding this form is crucial, as it provides the framework for attaching additional schedules and forms as needed.

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Form 1040-SR

If you’re 65 or older, Form 1040-SR is designed for simplicity and clarity.

It includes larger print and a straightforward format, making it easier for seniors to file their returns while accommodating common senior-specific deductions, such as medical expenses.

This form ensures that older taxpayers can access the benefits they’re entitled to without unnecessary confusion.

Form W-4

Form W-4 tells your employer how much federal income tax to withhold from your paycheck, ensuring you don’t owe too much — or get too large a refund — at tax time.

You complete this form upon starting a new job or when you decide to change tax withholdings. Regularly reviewing and updating this form can help you better manage cash flow throughout the year.

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Form W-2

If you’re an employee, your employer will provide you with a W-2 summarizing your annual wages and taxes withheld. It’s a must-have document for filing taxes and reporting earned income accurately.

Keep this form handy as you prepare a return.

Form 1099-INT

Do you have earned interest from savings accounts or CDs? Your bank or financial institution will send you a Form 1099-INT if you’ve earned $10 or more in interest.

You must report even small amounts of interest income to avoid potential issues with the IRS.

Form 1099-NEC

If you’re a freelancer or independent contractor, you’ll likely receive this form instead of a W-2. It reports payments of $600 or more from clients, ensuring your self-employment income is properly taxed.

Make sure to track all expenses throughout the year to offset taxable income effectively.

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Schedule A (Form 1040)

Use this schedule if you’re opting to itemize deductions rather than taking the standard deduction.

Common deductions include medical expenses, mortgage interest, and charitable donations, all of which can help you lower taxable income.

Schedule B (Form 1040)

Schedule B is for taxpayers who earn more than $1,500 in interest or dividends. It provides the IRS with details on your investment income, helping ensure you’re properly taxed on these earnings.

Schedule C (Form 1040)

If you run a small business or have side hustle income, Schedule C helps you calculate profit or loss.

It also allows you to deduct business-related expenses, such as office supplies or travel costs.

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Schedule D (Form 1040)

Schedule D is essential if you’ve sold investments such as stocks, bonds, or real estate. It helps you report and calculate capital gains or losses, which can affect your overall tax liability.

Schedule SE (Form 1040)

If you are self-employed, use Schedule SE to determine how much you owe in self-employment taxes.

Filing the form helps the government determine how much you will receive in Social Security benefits.

Form 1098

Homeowners should look for Form 1098 from their lender. This form reports mortgage interest paid during the year. The amount may be deductible, reducing your taxable income if you itemize.

You might also get a Form 1098-E if you paid interest on a student loan, or a Form 1098-T if you paid tuition and related expenses.

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Form 1040-X

If you made an error on your original tax return, Form 1040-X allows you to amend the return to fix mistakes or claim missed credits or deductions. This ensures you don’t overpay or underpay taxes.

Form 4868

Need more time to file your taxes? Filing Form 4868 grants you a six-month extension.

However, remember that while this extends the time to file, it doesn’t extend the deadline to pay taxes. You still need to estimate and pay any owed taxes by the original due date.

Submitting this form simply ensures you avoid late-filing penalties if you need extra time to organize your documents.

Bottom line

Filing a tax return doesn’t have to be stressful. Understanding these 14 essential forms is one key to navigating tax season smoothly.

Taking the time to familiarize yourself with these forms now can help you build your wealth and avoid unnecessary headaches when filing time arrives.

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