US TAX RETURNS
– CA Vishal Jagetiya, CA Shivam Thakkar
The U.S. tax system is set up under both a federal and state level. There are several types of taxes such as income, sales, capital gains, etc. Federal and state taxes are completely separate and each one has is own authority to charge taxes. Tax Returns are generally prepared using forms prescribed by the IRS.
2. Types of Returns
(I) Form – 1040: Personal federal income tax returns filed by United States Residents, Green Card Holder or anyone residing in USA for more than 6 months need to file this return.
|When?||Income tax returns for individual calendar year taxpayers are due by Tax Day, which is usually April 15 of the next year.|
|Variants of 1040:||For filing the regular tax return, in addition to the standard Form 1040, there are also two variants: the 1040NR and the 1040X.
(II) Form – 1065: Partnerships file an information return to report their income, gains, losses, deductions, credits, etc.
|But When?||15th day of the third month after the end of your partnership’s fiscal year. For a December 31 year-end, the due date is March 15.|
|Pay Tax by Whom under Partnership?||
(III) Form – 1041: Tax Return for Estates and Trusts
|By whom to file?||In the year of a person’s death, he or she leaves both personal income and, in some cases, estate income. That’s why the person dealing with the estate of a deceased person will have to file personal income taxes for the deceased and, potentially, estate income taxes, too.|
|When to file?||If Calendar year, then due date is on or before April 15.If fiscal year, then due date shall be 15th days of fourth month following the tax year close.|
(IV) Form – 1120: Corporation Income Tax Return
|When?||Filed by the 15th day of the 3rd month after the end of your corporation’s tax year.If your corporation has a December 31 tax year-end, you would need to file this tax report by March 31 of the following year.|
|Series of 1120:||
(V) Form – 1099: Report of various types of income other than salaries, wages by payer.
|When to generate?||It’s a record that an entity or person (not your employer) gave or paid you money.|
|Major Types of 1099:||
Completion of the some form can be confusing and complex, so it’s advisable to work with a knowledgeable tax professionals.