How to Get Tax Transcript Online

The IRS recently enhanced its e-authentication procedures required to register and use certain self-help tools on IRS.gov. This is a more rigorous e-authentication process than IRS has used in the past. It is in line with federal information security standards and the latest industry practices used by major financial institutions as well as many other large businesses.

 

Here’s what new users need to get started:

  • A readily available email address;
  • Your Social Security number;
  • Your filing status and address from your last-filed tax return;
  • Access to certain account numbers for either:
    • credit card, or
    • home mortgage loan, or
    • home equity (second mortgage) loan, or
    • home equity line of credit (HELOC), or
    • car loan
  • A readily available mobile phone. Only U.S-based mobile phones may be used. Your name must be associated with the mobile phone account. Landlines, Skype, Google Voice or similar virtual phones as well as phones associated with pay-as-you-go plans cannot be used;
  • If you have a “credit freeze” on your credit records through Equifax, it must be temporarily lifted before you can successfully complete this process.

Because this process involves verification using financial records, there may be a “soft notice” placed on your credit report. This notice does not affect your credit score.

 

To securely access Get Transcript Online, first-time users must:

  • Submit their name and email address to receive a confirmation code;
  • Enter the emailed confirmation code;
  • Provide their SSN, date of birth, filing status and address on the last filed tax return;
  • Provide some financial account information for verification such as the last eight digits of their credit card number or car loan number or home mortgage account number or home equity (second mortgage) loan number;
  • Enter a mobile phone number to receive a six-digit activation code via text message;
  • Enter the activation code;
  • Create username and password, create a site phrase and select a site image.

 

Returning taxpayers who have not completed the new secure access process:

  • Log in with an existing username and password;
  • Submit financial account information for verification, for example, the last eight digits of a credit card number or car loan number or home mortgage account number or home equity (second mortgage) loan account number;
  • Submit a mobile phone number to receive an activation code via text;
  • Enter the activation code.

Returning taxpayers who have completed the new secure access process:

  • Log in with an existing username and password;
  • Receive a security code text via mobile phone provided with account set up;
  • Enter the security code into secure access.

If at any point, you cannot validate your identity – for example, you cannot provide financial verification information or you lack access to a mobile phone – you may use Get Transcript by Mail.

Get Transcript by Mail allows you to go online and select a return or account transcript type to be mailed to your address of record and delivered within five to 10 days. You may also call 1-800-908-9946 to order these transcripts by phone.

Missing form W-2? The IRS can help

Missing form W-2? The IRS can help

Most taxpayers receive their forms W-2 at the end of January. Form W-2, wage and tax statement shows your income and the taxes withheld from your wages during the year. You need to file an accurate tax return.

 

What to do if you do not receive W-2 before February?

If you don’t receive your form for mid-February, this is what you should do:
• Communicate with your employer. Ask for a copy to your employer (or former employer). Be sure to have your correct address.
• If you can get a copy of your employer, call the IRS at 800-8291040 Extensions 2, after February 23. The IRS will send a letter to your employer on your behalf. You will need the following information when you call:
◦ Your name, address, SSN, phone number number;
◦The name of your employer, address, and telephone number;
◦Dates of Employment of employment; and
◦An approximate calculation of wages received federal tax withheld in 2016. Use information from the last pay stub for these amounts.

 

File Your Tax Return, Even with No W-2

File your return on time. Your tax return generally expires on April 18, 2016. Use the form 4852, substitute for form W-2, statement of wages and taxes (in English), if you did not get your W-2 in time. Click here for an estimate of income and tax withheld as accurately as possible. If you can finish your return deadline, you may request more time to present. Request an extension of six months presenting the form 4868 (SP) application for automatic extension for filing a Federal Declaration of taxes. It can also send a request by e – file for more time or you can do it free with Free File of the IRS.

You may need to correct your tax return if you received W-2 missing after submitting the Declaration. If the W-2 tax information is different from that originally reported, you need to file an amended tax return. Use Form 1040 X, Declaration as amended from the tax Federal on income of the United States (in English), to make the change.

 

2016 Health Insurance Tax Forms

Important notice: by 2015, there are new forms of health insurance. Starting the year 2016, the majority of taxpayers will receive one or more of the forms related to the health coverage they had in the previous year If it is signed by 2015 for medical coverage through the health insurance market, you should receive form 1095-A, statement of medical coverage of the market, at the beginning of February.

What to do if Health Insurance Forms are Missing?

If registered in other medical coverage in 2015 you will receive new form 1095-B 1095-C offer health coverage and health insurance coverage provided by the employer for the end of March. If you believe that you should receive a form, but it has not reached contact the issuer of the form – the market, your provider coverage or your employer. If you expect to receive a form 1095 – A, must wait to file your taxes for the year 2015 until this form is received. However, it is not necessary to wait the 1095-B or C-1095 forms in order to present.

 

Every taxpayer has a number of fundamental rights which should be taken into account when dealing with the IRS. These are the rights of the taxpayer. Explore your rights and our obligations to protect them at IRS.gov.

Which Tax Form is Best for You?

This tax filing season, get things off to a good start. Make it easy on yourself and let the software you use to e-file select the right tax form for you. Filing electronically is the easiest way to file a complete and accurate return. The tax software asks questions at each step and minimizes errors. E-file also helps you get the tax credits and deductions that you are entitled to claim. Brand-name software is also free when you use IRS Free File on IRS.gov. Here are some tips to help you choose the right forms:

Who can use Tax Form 1040Ez to File Taxes?

You can generally use Form 1040EZ if:

  • Your taxable income is below $100,000;
  • Your filing status is single or married filing jointly;
  • You don’t claim dependents; and
  • Your interest income is $1,500 or less.

Note: You can’t use Form 1040EZ to claim the Premium Tax Credit. Nor can you use this form if you received advance payments of the premium tax credit in 2015.

 

Who can use IRS Form 1040A to File Taxes?

Form 1040A may be best for you if:

  • Your taxable income is below $100,000;
  • You have capital gain distributions;
  • You claim certain tax credits; and
  • You claim adjustments to income for IRA contributions and student loan interest.

 

Who can use IRS Form 1040 to File Taxes?

You must use the Form 1040 if:

  • Your taxable income is $100,000 or more;
  • You claim itemized deductions;
  • You report self-employment income; or
  • You report income from sale of a property.

 

Easiest to E-File Tax Return

Remember, if you e-file you don’t need any paper forms to mail to the IRS. Go to IRS.gov and click on the ‘IRS e-file’ icon to check your options. Don’t forget to see if IRS Free File is right for you. If you need a paper form you can get it on IRS.gov/forms at any time.

Each and every taxpayer has a set of fundamental rights they should be aware of when dealing with the IRS. These are your Taxpayer Bill of Rights. Explore your rights and our obligations to protect them on IRS.gov.

Free Fillable IRS Forms, electronic versions of the IRS paper forms

70 percent of taxpayers are eligible for easy-to-use, brand-name software. Find the right software product for you at irs.gov/freefile. Free File Fillable Forms is best for people comfortable preparing their own tax return with limited assistance.

IRS Free Fillable Forms

Free Fillable Forms from the IRS is extremely comprehensive.

It doesn’t use the “interview question” style of other commercially provided software. But if you know the forms that you need to fill out, it offers a way for you to select them, fill them out, and automatic math calculations are done when possible for you.

You can save your work while you prepare your taxes and revisit it later. You can also get printouts. Then you have an option of filing online directly or mailing in your completed filing.

What Free IRS Forms are Available?

List of Available Schedules and Forms
https://www.irs.gov/uac/List-of-Available-Free-File-Fillable-Forms

One Page Overview
https://www.irs.gov/pub/irs-utl/Free-File-Fillable-Forms-Get-Started.pdf

Detailed User Manual (19 pages)
https://www.irs.gov/pub/irs-utl/Free_File_Fillable_Forms_User_Guide.pdf

It will be available soon, on Jan 19th. No income limit for using this.

Access Portal
https://www.irs.gov/uac/Free-File:-Do-Your-Federal-Taxes-for-Free

 

Specific to OP: Schedule D and Form 8949 are both available in Free File Fillable Forms. There is one limitation to Form 8949 — you are not able to use the “EXPIRED” entry in columns (d) or (e) related to gains or losses from an expired option “that isn’t a section 1256 contract but is a capital asset in your hands.”

 

What free fillable IRS forms to use?

Once your account is created, select the start button for the type of 1040 you want to file: Form 1040, 1040-A, or 1040-EZ. If you select the wrong form and need to start over, all your tax information will be erased. Not sure which form to select? • Read the form instructions at the bottom of the screen to see which one will best meet your needs. Switching to another main form later on will delete all the tax information you entered • For the 1040-EZ, read the checklist in the Form 1040-EZ instructions • For the 1040-A, read “Who Can Use Form 1040-A” in the instructions • To file an extension (Form 4868) you must first select a main 1040 form and fill in your name, address and SSN sections

 

What free fillable IRS forms are available?

Forms Available for Filing Season 2016 (TY 2015)
Form Number Form Name Available
Form 1040 U.S. Individual Income Tax Return Known Limitations

Now

Form 1040A U.S. Individual Income Tax Return Known Limitations

Now

Form 1040EZ Income Tax Return for Single and Joint Filers With No Dependents

Now

Form 1040V Payment Voucher

Now

Form 1040ES Estimated Tax Payments

01/31/16

Form 1099-R Distributions From Pensions, Annuities, Retirement or Profit-Sharing Plans, IRAs, Insurance Contracts, etc. Now
Schedule A Itemized Deductions Known Limitations

Now

Schedule B Interest and Ordinary Dividends

Now

Schedule C Profit or Loss From Business

Now

Schedule C-EZ Net Profit from Business Known Limitations

Now

Schedule D Capital Gains and Losses

Now

Schedule E Supplemental Income and Loss Known Limitations

Now

Schedule EIC Earned Income Credit Known Limitations

Now

Schedule F Profit or Loss From Farming

Now

Schedule H Household Employment Taxes

Now

Schedule J Farm Income Averaging

Now

Schedule R Credit for the Elderly or the Disabled

Now

Schedule SE Self-Employment Tax

Now

Form 1116 Foreign Tax Credit Known Limitations

Now

Form 1310 Statement of Person Claiming Refund Due of a Deceased Taxpayer (You cannot e-file a return with this form attached. You can complete the  form and mail it with your return)

Now

Form 2106 Employee Business Expenses

Now

Form 2106EZ Unreimbursed Employee Business Expenses

Now

Form 2120 Multiple Support Declaration

Now

Form 2210 Underpayment of Estimated Tax by Individuals, Estates, and Trusts

Now

Form 2210F Underpayment of Estimated Tax by Farmers and Fishermen

Now

Form 2439 Notice to Shareholder of Undistributed Long-Term Capital Gains

Now

Form 2441 Child and Dependent Care Expenses Known Limitations(Complete line 1 columns (a) through (d) for each person or organization that provided the care. Don’t forget to include their SSN or EIN)

Now

Form 2555 Foreign Earned Income

Now

Form 2555EZ 2555EZ Foreign Earned Income Exclusion

Now

Form 3468 Investment Credit

01/31/16

Form 3800 General Business Credit

Now

Form 3903 Moving Expenses

Now

Form 4136 Credit for Federal Tax Paid on Fuels

Now

Form 4137 Social Security and Medicare Tax on Unreported Tip Income

Now

Form 4255 Recapture of Investment Credit

Now

Form 4562 Depreciation and Amortization (Including Information on Listed Property) Known Limitations

Now

Form 4684 Casualties and Thefts

Now

Form 4797 Sales of Business Property Known Limitations

Now

Form 4835 Farm Rental Income and Expenses

Now

Form 4868 Application for Automatic Extension of Time to File U.S. Individual Income Tax Return Known Limitations

Now

Form 4952 Investment Interest Expense Deduction

Now

Form 4972 Tax on Lump Sum Distributions

Now

Form 5329 Additional Taxes on Qualified Plans (Including IRAs) and Other Tax-Favored Accounts

Now

Form 5405 First-Time Homebuyer Credit (Only Page 2, Part IV of the Form, Repayment of Credit may be e-filed)

Now

Form 5695 Residential Energy Credits

Now

Form 5884 Work Opportunity Credit

01/31/16

Form 6198 At-Risk Limitations Known Limitations

Now

Form 6251 Alternative Minimum Tax-Individuals Known Limitations

01/31/16

Form 6252 Installment Sale Income

Now

Form 6765 Credit for Increasing Research Activities

01/31/16

Form 6781 Gains and Losses from Section 1256 Contracts & Straddles

Now

Form 8082 Notice of Inconsistent Treatment or Administrative Adjustment Request

Now

Form 8275 Disclosure Statement

Now

Form 8275R Regulation Disclosure Statement

Now

Form 8283 Noncash Charitable Contribution Known Limitations

Now

Form 8379 Injured Spouse Allocation

Now

Form 8396 Mortgage Interest Credit

Now

Form 8453 U.S. Individual Income Tax Transmittal for an IRS e-file Return(This form can’t be e-filed, it must be mailed in)

Now

Form 8582 Passive Activity Loss Limitations Known Limitations

01/31/16

Form 8582-CR Passive Activity Credit Limitations

Now

Form 8586 Low-Income Housing Credit

Now

Form 8594 Asset Acquisition Statement

Now

Form 8606 Nondeductible IRAs (For 1040A)

Now

Form 8606 Nondeductible IRAs (For 1040) Now
Form 8609A Annual Statement for Low-Income Housing Credit

Now

Form 8611 Recapture of Low-income Housing Credit

Now

Form 8615 Tax for Children Under Age 18/24 With Investment Income of More Than $1,800

Now

Form 8689 Allocation of Individual Income Tax to the US Virgin Islands

01/31/16

Form 8697 Interest Computation Under the Look-Back Method for Completed Long-Term Contracts

Now

Form 8801 Credit for Prior Year Minimum Tax – Individuals, Estates and Trusts

Now

Schedule 8812 Additional Child Tax Credit Known Limitations

Now

Form 8814 Parents’ Election To Report Child’s Interest and Dividends

Now

Form 8815 Exclusion of Interest From Series EE US Savings Bonds Issued After 1989

Now

Form 8820 Orphan Drug Credit

Now

Form 8824 Like-Kind Exchanges

Now

Form 8826 Disabled Access Credit

Now

Form 8828 Recapture of Federal Mortgage Subsidy

Now

Form 8829 Expenses for Business Use of Your Home Known Limitations

01/31/16

Form 8833 Treaty-Based Return Position Disclosure Under Section 6114 or 7701(b)

Now

Form 8834 Qualified Electric Vehicle Credit

Now

Form 8839 Qualified Adoption Expense

Now

Form 8844 Empowerment Zone and Renewal Community Employment Credit

01/31/16

Form 8845 Indian Employment Credit

01/31/16

Form 8846 Credit for Employer Social Security and Medicare Taxes Paid on Certain Employee Tips

Now

Form 8853 Archer MSAs and Long-Term Care Insurance Contracts

Now

Form 8859 District of Columbia First-Time Homebuyer Credit

Now

Form 8862 Information To Claim Earned Income Credit After Disallowance

Now

Form 8863 Education Credits (Hope and Lifetime Learning Credits) Known Limitations (Complete First Page 2, Part III)

Now

Form 8864 Biodiesel and Renewable Diesel Fuels Credit

01/31/16

Form 8874 New Markets Credit

Now

Form 8873 Extraterritorial Income Exclusion   Now
Form 8880 Credit for Qualified Retirement Savings Contributions Known Limitations

Now

Form 8881 Credit for Small Employer Pension Plan Startup Costs

Now

Form 8882 Credit for Employer – Provided Child Care Facilities and Services

Now

Form 8885 Health Coverage Tax Credit

Now

Form 8886 Reportable Transaction Disclosure Statement

Now

Form 8888 Direct Deposit of Refund to more than 1 account

Now

Form 8889 Health Savings Accounts (HSAs) Known Limitations

Now

Form 8891 US Information Return for Beneficiary of Certain Canadian Registered Retirement Plans

Now

Form 8903 Domestic Production Activities Deduction

Now

Form 8906 Distilled Spirits Credit

Now

Form 8907 Nonconventional Source Fuel Credit

Now

Form 8908 Energy Efficient Home Credit

01/31/16

Form 8909 Energy Efficient Appliance Credit

Now

Form 8910 Alternate Motor Vehicle Credit

Now

Form 8911 Alternate Fuel Vehicle Refueling Credit

01/31/16

Form 8917 Tuition and Fees Deduction

Now

Form 8919 Uncollected Social Security and Medicare Tax on Wages

Now

Form 8930 Midwestern Disaster Area Distributions

Now

Form 8932 Credit for Employer Differential Wage Payments

Now

Form 8933 Carbon Dioxide Sequestration Credit

Now

Form 8936 Qualified Plug-in Electric Drive Motor Vehicle Credit Known Limitations

01/31/16

Form 8938 Statement of Foreign Financial Assets   Known Limitations Now
Form 8941 Credit for Small Employer Health Insurance Premiums

Now

Form 8949 Sales and other Dispositions of Capital Assets Known Limitation

Now

Form 8959 Additional Medicare Tax

Now

Form 8960 Net Investment Income Tax – Individuals, Estates and Trusts

01/31/16

Form 8962 Premium Tax Credit  Known Limitations Now
Form 8965 Health Coverage Exemptions  Known Limitations Now
Form 9465 Installment Agreement Request

Now

Form 982 Reduction of Tax Attributes Due to Discharge of Indebtedness (And Section 1082 Basis Adjustment)

01/31/16

Form W-2 Wage and Tax Statement  Known Limitations Now
Form W2-G Certain Gambling Winnings  Known Limitations Now

 

Filing a Tax Extension

To file an extension, you must first select a main form (1040, 1040A or 1040EZ), and complete the personal information section (Name, Address, and SSN). Next, select the “File an Extension” icon from the menu bar. Form 4868 will open. Complete the form. The bottom half of this extension is similar to Step 2, Page 12, Sections 3–5. When you are filing an extension, you MUST enter amounts on both lines 6 and 7 of the Form 4868 if you owe a balance and want to make a payment. If you leave line 7 blank and you are paying electronically, no amount will be deducted from your bank account. You may elect to pay using direct debit or other e-payment options such as IRS Direct Pay. You may also file a Form 1040V, Payment Voucher, and mail a check to the IRS for the amount on line 7 payable to the US Treasury.

Remember, you must pay your taxes on time even if you are extending your tax filing deadline.

 

Information about Free Fillable IRS Forms:

  • If you weren’t able to e-file your return but printed a copy, mail it in
  • If you do not have a copy to mail, prepare another return
  • For filing options, view the Online Individuals page
  • Get up-to-date refund information with Where’s My Refund
  • Get a copy of your accepted federal return with Get a Transcript
  • Pay your balance or make estimated tax payments with Direct Pay

Estate and Gift Tax IRS Forms

  • Publication 559. This publication is designed to help those in charge of the property (estate) of an individual who has died (decedent). It explains how to complete and file federal income tax returns and points out the responsibility to pay any taxes due.
  • Form 706 (PDF). Form to be filed on certain estates of a deceased resident or citizen. The catalog number for the instructions is 16779E. Prescribing Instructions are: IRC Sec. 6018; Regs. Sec. 20.6018-1.
  • Form 706 Instructions (PDF), This item is used to assist in filing Form 706. Form 706 is used by the executor of a decedent’s estate to figure the estate tax imposed by Chapter 11 of the Internal Revenue Code.  Instructions include rate schedules.
  • Form 709 (PDF). Form 709 is used to report transfers subject to the Federal gift and certain generation-skipping transfer (GST) taxes, and to figure the tax, if any, due on those transfers.
  • Form 709 Instructions (PDF), This item contains helpful information to be used by the taxpayer in preparation of Form 709, U.S. Gift Tax Return. Instructions include rate schedules.
  • Notice — Form 709-A is Now Obsolete and Should Not Be Filed. All gift tax returns must now be filed using Form 709, United States Gift (and Generation-Skipping Transfer) Tax Return (PDF). — 21-OCT-2003
  • Form 2848 (PDF). Used with respect to any tax imposed by the Internal Revenue Code (except alcohol and tobacco taxes and firearms activities). Form 2848 has separate instructions (11981U).
  • Form 2848 Instructions (PDF), This item contains general instructions for using and preparing Form 2848.
  • Form 4421 (PDF) .
  • Form 4422 (PDF) .
  • Form 1041 (PDF).
  • Form 1041 Instructions (PDF).
  • Schedule K-1 (PDF).
  • Section 7520 to be used in valuing certain charitable transfers.
  • Form 4768 (PDF). (NOTICE: Some errors are being made when this form is completed. Please remember to file the second page and to be sure to fill in the decedent’s name and social security number)

Self Employed Form 1040 and Schedule C or Schedule C-EZ

Overview of Small Business Tax Issues for Self- Employed

If you are in business for yourself or you carry on a trade or business as a sole proprietor or you’re an independent contractor, you generally would consider yourself self-employed; and you would file Schedule C or C-EZ with your Form 1040.Here are a few things the IRS wants you to know about self-employment.Self-employment can include work in addition to your regular full-time business activities, such as part-time work you do at home or in addition to your regular job.

What is Self-Employment Tax?

If you are self-employed, you generally have to pay self-employment tax. Self-employment tax is Social Security and Medicare.It’s similar to the Social Security and Medicare taxes withheld from the pay of most wage earners. You figure self-employment tax yourself, using a Form 1040 Schedule SE. Also, you can deduct half of your self-employment tax in figuring your adjusted gross income. And if you’re self-employed, you generally have to make estimated tax payments. This applies even if you also have a full-time or part-time job and your employer withholds taxes from your wages.

What are Estimated Taxes?

Estimated tax is the method used to pay tax on income that is not subject to withholding. If you don’t make quarterly tax payments, you may be penalized for underpayment at the end of the tax year. You can deduct the costs of operating your business.

What Business Expenses?

These costs are known as business expenses. Assets you will use in your business for more than one year, such as buildings or furniture, are things you’ll have to depreciate. Assets with a life of a year or less, such as office supplies, are not depreciated but are deductible in the year you purchase them. To be deductible, a business expense must be both ordinary and necessary. An ordinary expense is one that is common and accepted in your field of business. A necessary expense is one that is helpful and appropriate for your business. In addition, you must be able to substantiate your expenses. Therefore, it’s important to keep good records. And finally, for information, see the Small Business and Self-Employed Tax Center on www.irs.gov. Generally, you are self-employed if any one of the following apply to you.

 

Schedule C or Schedule C-EZ

To file your annual Federal tax return Form 1040, you will need to use Schedule C or Schedule C-EZ to report your income or loss from a business you operated or profession you practiced as a sole proprietor. Also, be sure to include any income reported to you as a self-employed person on Form 1099-MISC. Small businesses and statutory employees with expenses of $5,000 or less may be able to file Schedule C-EZ instead of Schedule C. To report your Social Security and Medicare taxes, file Schedule SE (Form 1040), Self-Employment Tax.

Calculate Social Security and Medicare taxes Due

Use the net income or loss from Schedule C or the net income from Schedule C-EZ to calculate the amount of Social Security and Medicare taxes due for the year. The instructions for the Schedule SE will be helpful in filling out the form.

Schedule C-EZ instead of Schedule C

You may use Schedule C-EZ instead of Schedule C only if you had business expenses of $5,000 or less; used a cash method of accounting; did not have an inventory at any time during the year; did not have a net loss from your business; had only one business as either a sole proprietor, qualified joint venture, or statutory employee; and you had no employees, no depreciation or amortization of business expenses, you do not deduct expenses for business use of a home, and no prior-year un-allowed passive activity losses. Over time, a sole proprietorship may have to switch from Schedule C-EZ to the Schedule C. This is usually an indication that the business has grown and now has more expenses, inventory, employees, et cetera.Use Form 1040 (Schedule C) to report income or loss from a business you operated or a profession you practiced as a sole proprietor.

What does the IRS Consider a Business?

An activity qualifies as a business if your primary purpose for engaging in the activity is for income or profit, and you are involved in the activity with continuity or regularity. Also use Schedule C to report gross receipts and expenses of your sole proprietorship, as well as certain miscellaneous income shown on Form 1099-MISC. Since most businesses start off as sole proprietor, we’re using Form 1040 (Schedule C) in our examples.Calculating a profit or loss from business is divided into five parts. Parts 1, 2, and 3 use terms such as gross receipts, net profit or loss, net sales, cost of goods sold, and gross profit. Parts 4 and 5 ask for information about your vehicle and other expenses. In the next few slides, I’ll explain these terms. Let’s begin with net profit or loss. To figure estimated taxes and to report income earned from your business, you must figure your net profit or loss.

What is Self-Employment Net Profit?

Net profit is the amount on which you pay tax. If you operated at a loss, enter the amount in parentheses. The basic way to determine profit or loss is the same for each type of business organization. You’ll use this formula: Gross income less expenses equals net profit or loss. Net profit is the amount by which the gross profit is more than the business expenses for the same period. A net loss is where the cost of goods sold and business expenses are more than the gross receipts. If your Schedule C shows a profit, enter the amount on both Form 1040 and Schedule SE.

Net Loss on Form 1040 Schedule SE

If you have a net loss and all of your investment is at risk, enter the loss on both Form 1040 and Schedule SE.If you have a loss and some of your investment is not at risk, in most cases you must complete Form 6198, At-Risk Limitations, to figure your allowable loss. The At-Risk Rules may limit the amount of loss you can claim.

What are Considered Gross Receipts?

Next we’ll discuss gross receipts, returns, and allowances and net sales. Gross receipts or sales are the income that a business receives from the sale of its products or services. Take a look at this basic formula: Gross receipts less returns and allowances equal net sales. Individuals that don’t make or buy products for resale as part of their business don’t have returns or allowances to deduct on gross sales.

What is Cost of Goods Sold?

Now for the next term, cost of goods sold. Cost of goods sold is the cost to a business to buy or make the products being sold. It’s easy to figure the cost of goods sold if you sell all your merchandise during the year; however, some of your sales will probably be from inventory that you carried over from earlier years, and you will probably have an inventory left unsold at the end of the year. Note, some companies that provide services, such as lawn care, web design, et cetera, do not have inventories and don’t need to compute the cost of goods sold amount. Here’s another formula for you.

Calculating Cost of Goods Sold

To figure the cost of goods sold, start with the cost of the inventory on hand at the beginning of the year. Add the cost of additional goods purchased or manufactured during the year. Be sure to subtract the cost of any merchandise withdrawn for personal use, such as food a grocer may take home or gasoline a garage owner may give to relatives. The result is the cost of items available for sale during the year. Then subtract the value of your inventory at the end of the year. Your cost of goods sold is the remainder. Some businesses may choose to keep a continuous or automated inventory system. But no matter how you choose to track it, you need to keep good beginning and year-end inventory records. Now I’m going to figure gross profit. Here comes the final formula we’re discussing today. Beginning with gross receipts, subtract your sales, returns, and allowances and the cost of goods sold to determine gross profit.

What expenses can Service Companies Deduct?

Again,we note that sole proprietorships that are service companies don’t need to deduct the cost of goods sold to complete their gross profit.Let’s go into more detail about common business expense deductions. We’ll start with travel, transportation, and entertainment.These deductions are common to all types of businesses. We’ll take a look at each type. Travel expenses are the ordinary and necessary expenses for traveling overnight away from home in the course of your trade or business. These expenses include the cost of public transportation, operating and maintaining your car, meals, lodging, and other related expenses.

Deducting Transportation Costs

You can deduct the actual cost of meals or use a standard per-diem rate. See Publication 463 for the latest per-diem rates and detailed information about your travel expenses. Transportation expenses are the ordinary and necessary expenses of getting from one workplace to another in the course of your business or profession while you are not away from home. Commuting expenses are not deductible.Exactly what are commuting expenses? You cannot deduct the cost of taking a bus, trolley, subway, or taxi, or of driving a car between your home and your main or regular place of work. These costs are personal commuting expenses. You cannot deduct commuting expenses no matter how far your home is away from your regular place of work. You cannot deduct commuting expenses even if you work during the commuting trip.For example, you sometimes use your cell phone to make business calls while commuting to and from work. Sometimes business associates ride with you to and from work, and you have a business discussion in the car.These activities do not change the trip from personal to business.

You cannot deduct your commuting expenses.

You cannot deduct your commuting expenses. If you use a car for business only, you may base your deduction on the full cost of operating it. If you use the car for both personal and business purposes, you must divide your expenses between those uses on the basis of mileage to compute a business percentage. Do not include commuting to and from work as business mileage. You may take a deduction for your actual business expenses for the car or use a standard mileage rate. Standard mileage means multiplying your business mileage by a standard rate. For this year’s rate, check the IRS website.

Using Standard Mileage Deduction

However, to use the standard mileage rate on a vehicle after the first year of business use, you must have used the standard mileage rate for the first year. In later years, you can alternate between standard mileage and actual expenses. This alternating option is not available to you if you claimed actual expenses in the first year of business use. Actual business expenses include gas, oil, repairs, insurance, depreciation, tires, and license plates. Under either method, parking fees and tolls are deductible. See Publication 463, Travel, Entertainment, Gift and Car Expenses, for more information on using standard mileage rates and the use of a car in your business.Business entertainment expenses are deductible only if they are ordinaryand necessary expenses of carrying on your trade or business. To deduct these expenses, you must maintain receipts and records. This includes taking clients to lunch. Publication 463 explains the 50% limit on business meal expenses.

 

2015 W-2 Form for Filing Taxes in 2016

To file your taxes in 2016, you will need a 2015 W-2 Form from your employer that reports wages from working in 2015. This tax form is called the W-2. Employers will typically start sending out form W-2 in late January and this form is very important to filing your tax return.

 

What is 2015, 2016 Form W-2?

A W-2 tax form shows the amount of taxes withheld from your paycheck for the year and is used to file your federal and state taxes. You should only receive a W-2 if you are an employee. If you are an independent contractor or self-employed, the work you do may be the same as an employee, but you will receive an earnings statement on a Form 1099 rather than a W-2.

What Information is on Form W-2?

Each W-2 includes information about your employer, including its name, address and tax identification number. It will also have your name, address, and Social Security number. It’s important to check this information to ensure accuracy. Because a copy of your W-2 goes to the Social Security Administration to establish your work history and eligibility for Social Security benefits, mistaken Social Security numbers can lead to lower monthly payments in retirement or even denial of benefits entirely.

 

Important W-2 into TurboTax or other tax software

Many firms are making their staff W-2 forms available on the internet since it makes submitting income taxes less complicated. When using web based submitting companies like, TurboTax or H&R Block you will have the capability to import your W2 data into your current tax return therefore you don’t have to worry about the paper work getting sent by mail. TurboTax Online will find and import your W2, which allows you to file your taxes as soon as you are ready. Alternatively, if you know the EIN of your employer you can enter this information and some of your own personal information to search for your W-2 online. H&R Block Online will find and import your W2.

Importing W2 into Tax Software

When using a web based company like, H&R Block you will have the capability to import your W2 data into your current tax return therefore you don’t have to worry about the paper work getting sent by mail. Once you have found your W-2 you have the option to begin filing or download and print out your W-2 so it can be included with your tax return. If you need additional copies, you can always go back to the website and repeat the process again.

 

Combined Annual Wage Reporting Missing Form W-2 Inquiries

The Social Security Administration (SSA) and Internal Revenue Service (IRS) have an agreement to exchange employment tax data. SSA shares Form W-2 data with the IRS and the IRS shares Form 941, 943, 944, 945 (henceforth called Form 94X) and Schedule H data with SSA. The Combined Annual Wage Reporting (CAWR) is a document matching program that compares the Federal Income Tax (FIT) withheld, Medicare wages, Social Security wages, and Social Security Tips reported to the IRS on the Forms 94X and Schedule H against the amounts reported to SSA via Forms W-3 and the processed totals of the Forms W-2.

 

Missing 2015 Form W2

Many taxpayers face missing their tax documents because they have moved during the previous year and their tax forms are sent to their prior address. If you sign up to get your W 2 forms online, you are able to eliminate having your forms sent to the wrong address.

Additionally, when you get your forms online you usually are able to access them before they would arrive in the mail. This way you can be ahead of everyone else when tax season comes which means you will receive your refund sooner.

 

Getting W2 Forms Online

When getting your W-2 form online you will receive an email notification once they are available. Lastly, when you access your forms online you are able to download and print your forms whenever you need them. This way you do not have to worry about keeping them in a safe place then forgetting what the safe place was.

IRS E-signature Authorization Forms

In an effort to make electronic filing easier and recordkeeping less burdensome, the IRS will allow E-signatures on two authorization forms for individual income tax returns. The first one is the Form 8878. That’s the IRS e-file Signature Authorization for Form 4868 or Form 2350. The other form is Form 8879. For those that are interested in the Esignature process, more detailed information can be found in Publication 1345. That’s the Handbook for Authorized IRS e-file Providers of Individual Income Tax Returns.

 

IRS e-file Signature Authorization for Form 4868 or Form 2350

E-signatures can be completed in many forms by many different technologies as you’re aware. In order to allow for innovation in this new area, no specific technology or process has been mandated by the IRS in order to utilize this. But to provide some context, if you look at Publication 1345, it offers some examples of currently acceptable signature methods, and a couple of those examples are a handwritten signature input onto an electronic signature pad. Another example that’s in there is a digitized image of a handwritten signature that is attached on an electronic record. So take a look at Publication 1345 for other examples of acceptable signature methods.

 

IRS E-Signature Requirements

One of the requirements for utilizing these signatures is that the process used must be able to generate evidence as to the person the electronic signature belongs to, as well as generate evidence that the identified person is actually associated with the electronic record.

 

 

Other IRS E-Signature Requirements

For joint returns or other situations where there’s more than one taxpayer listed for signing that electronic record, the E-signature process must be designed to separately identify and authenticate each taxpayer that’s listed.

 

What is Individual Taxpayer Identification Number ITIN

What is an ITIN?

Individual Taxpayer Identification Number – An ITIN is a tax processing number, issued by the Internal Revenue Service, for certain resident and nonresident aliens, their spouses, and their dependents. It is a nine-digit number beginning with the number “9”, has a range of numbers from “70” to “88”, “90” to “92”, and “94” to “99” for the fourth and fifth digits and is formatted like a Social Security number.

 

How to get an ITIN?

The ITIN is only available to individuals who are required to have a taxpayer identification number for tax purposes but who do not have and are not eligible to obtain an SSN from the Social Security Administration. Only individuals who have a valid filing requirement or are filing a U.S. federal income tax return to claim a refund of over-withheld tax are eligible to receive an ITIN.

 

ITIN Expiration and ITIN Renewal

Individual Taxpayer Identification Numbers (ITINs) will expire if not used on a federal income tax return for any year during a period of five consecutive years, the Internal Revenue Service announced today. That is, the IRS will not deactivate an ITIN that has been used on at least one tax return in the past five years. To give all interested parties time to adjust and allow the IRS to reprogram its systems, the IRS will not begin deactivating ITINs until 2016.

 

IRS Form 13551

Before submitting Form 13551 to apply to participate in the Acceptance Agent Program, access and complete the mandatory Acceptance Agent training

Obtaining Prior Years Tax Returns from IRS

Getting an old tax return from the IRS can be a very simple process if certain tips are followed. Make sure to keep old IRS transcripts for up to 6 years. This will be useful in case any past IRS tax returns are audited and you need to present a defense to the IRS.

 

Getting Old Tax Return From IRS

There are many reasons why you might need a copy of the information from your tax return for previous years. So you may need when applying for a student loan, a mortgage for a house or a credit card. If you do not have your copy, the IRS can help. It’s easy to get a free IRS transcript. Here are several ways for you to get what you need:

  • Transcript of Your Tax Return. A transcript of the statement shows most line of your tax return just as presented. It also includes the forms and exhibits presented. However, it does not reflect changes made ​​to the statement after the presented. In most cases, your transcript of the tax will have all the information a lender or other agency needs.
  • Transcript of Tax Account . This transcript shows the adjustments made ​​by you or the IRS after you filed your tax return. Displays basic information such as marital status, type of statement, the adjusted gross income and taxable income.
  • How to Get a Transcript. You can order transcripts online, by phone or by mail. Both types of transcripts are free. They are available for the most recent after the IRS has processed your refund tax year. You can also obtain copies of the last three tax years..

 

Ordering Old Tax Returns from the IRS

  • Order Online. Use the ‘tool Sort Transcript ‘available on IRS.gov. You can use this tool to confirm your identity and to view and print copies of your transcript immediately in one session, for free. The tool is available for five types of tax records: tax account transcript, transcript tax, account registration, wages and incomes and verification of no show.
  • Order by Phone . Call 800-908-9946. A recorded message will guide you through the process.
  • Order by Mail. The easiest way to order your transcript by mail is to use the online option on IRS.gov Sort Transcript by mail . You can also complete the electronic and Form 4506T-EZ to get your transcript of your tax return. Use Form 4506-T to request your tax account transcript by mail.
  • How to Get a Copy of Tax Return. Copies of your tax returns are generally available for the current tax year and six years ago. The cost per copy is $ 50. Complete and submit the Form 4506 by email to request a copy of your tax return. Send your request to the IRS office on the form for your area.

 

Old IRS Transcripts my Mail from IRS

Delivery for orders online and by phone usually take 5-10 days from the time the IRS receives the request. You must wait 30 days to receive a transcript ordered by mail and 75 days for copies of your tax return. You can print tax forms online at IRS.gov/forms.To get the forms in the mail visit IRS.gov/orderforms to order.