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Federal income tax instructions have become easier with online forms and information. You can use the IRS website to guide you through the completion of a number of forms. Depending on the form you are using, you will have different requirements.
W2, W9
W2 forms are for reporting wages according to the federal income tax table. The U.S. uses a progressive tax model, meaning you will owe a higher percentage when you make more money. The W2 offers easy instructions for declaring your taxes each year. The W9 is used for independent contractors and financial institutions. W2 and W9 taxes are withheld from a paycheck.
1099, 1040
A 1099 form is used by independent contractors or freelancers to report income received on a per-contract basis. 1099 taxes are not withheld from a paycheck, but they are paid at the end of each year. The 1040 form is used to report taxable income at the end of the year. The 1040ez form may be used for those filing without dependents.
When you are filling out your tax forms, follow the written instructions on the form. Check your calculations, which are typically very simple and do not require a calculator, more than once. Be honest with your deductions to avoid penalties and lawsuits.
