Tax forms

You've just learned about different types of taxes, like sales tax, property tax, and income tax. One thing we all have in common is the responsibility to pay taxes on any income we receive, whether it's from a job or even interest from a savings account.

In this article, we'll walk you through the key tax forms you'll come across throughout the year. Unfortunately, there isn't a direct logical explanation behind the naming of these tax forms, as IRS simply used whatever letters and numbers were available at the time the forms were created. But, we can help create some fun associations to help remember them. A journey through the world of taxes typically begins with your first job, so let's start there.

With your new job comes some paperwork, including two very important forms: the W4 and the I9.

The W4 form helps your employer figure out how much income tax to take out of your paycheck. You'll answer a few personal questions like your marital status and if you have any kids.

No worries, though, you can update your W4 form anytime something in your life changes during the year and your employer will adjust how much taxes they are withholding.

Now, the I9 form is all about making sure you're legally able to work in the United States. To fill it out, you'll need a proper ID like a driver's license or passport.

If you are working a side gig or working as a freelancer—or if you're starting a new job as an independent contractor—you might need to complete a W9 form. This form gives your taxpayer identification number (or Social Security number) to the person paying you, so they can report your income to the IRS.

In January, your employer will send you a very helpful form called the W2. It tells you all about the money you made and the taxes pulled from your paycheck during the previous year. Make sure to keep it safe, as you'll definitely need it when you file your taxes!

If you received any money from any other source, you will receive a 1099 form. This can be from your side job, contract work, or even from your bank for any interest you earned in your account.

If you have any educational expenses or you're a homeowner, there's a useful form called the 1098. This form has the details on mortgage interest or college expenses and will arrive during January and February. 1098 form is very helpful because it can help lower your taxes.

As they say, all things must come to an end, especially when it comes to taxes. The grand finale for wrapping up taxes is usually on April ${15}^{th}$‍. This is the day you'll need to complete the 1040 form, letting the government know about your income and nailing down your final taxes for the year. Keep in mind, the 1040 form uses all the info you've collected from your W2s, 1099s, and other forms. Once you complete this form, you will know if you owe taxes, or if you are getting a refund.

Lots of people get their taxes out of the way even before the April deadline, but it's definitely the last call to get them done.