Demystifying the most common terms you'll encounter during tax season.
Adjusted Gross Income (AGI)
Tax Withholding
W-2 and 1099 Forms
Your gross income minus specific deductions, like IRA contributions or student loan interest. A key figure for determining eligibility for various tax credits and deductions.
Money your employer deducts from your paycheck to cover income taxes. Paid to the IRS on your behalf throughout the year, helping you avoid a large tax bill.
W-2 reports annual wages and taxes withheld from an employer. A 1099 reports income from non-employment sources, such as freelance work or investments.
Navigating Tax Forms
Understanding the various forms and schedules attached to your tax return is crucial. We break down the purpose of each, from the standard 1040 to specific schedules like A or C. Learn what information each form requires and how it impacts your tax picture, all without legalese.
Many get overwhelmed by tax documents. Our guides clarify the distinction between income reporting forms (W-2s, 1099s) and forms for claiming deductions or credits. We also cover common attachments like Form 8863 for education or Form 8962 for premium tax credits, ensuring you know which documents apply to you.
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