Glossary of Tax Terms

1040

Form 1040, U.S. Individual Income Tax Return

The basic form you file annually with the IRS. If you do not have a complex tax return, you may be able to use the simplified versions: Form 1040A or 1040EZ. For more information, see "Which Form Should I Use?" in IRS Publication 17, Your Federal Income Tax.

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1040A

Form 1040A, U.S. Individual Income Tax Return

A simplified version of Form 1040, U.S. Individual Income Tax Return. You can usually use this form if you do not itemize or own a business and your taxable income is under $50,000. For specific rules, see "Which Form Should I Use?" in IRS Publication 17, Your Federal Income Tax.

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1040EZ

Form 1040EZ, U.S. Individual Income Tax Return

The simplest version of Form 1040, U.S. Individual Income Tax Return, used by taxpayers with no deductions, no adjustments, income of only wages, interest, or unemployment compensation, and no dependents. For specific rules, see "Which Form Should I Use?" in IRS Publication 17, Your Federal Income Tax.

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1099-DIV

Form 1099-DIV

A required statement from your broker or a company whose stock you own that summarizes your dividends. The main purpose of this form is to report the dividends you received, income tax withheld from dividends, and foreign taxes paid on dividends. Your broker may send a substitute statement that may also include amounts you earned from mutual funds, purchases of stock, sales of stock, purchases and sales of shares in mutual funds, and a summary of the investments you still own at the end of the year.

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1099-INT

The statement you receive from payers of interest income, such as banks and savings institutions, that summarizes your interest income for the year. This form is also used to report other tax items related to your interest income, such as early withdrawal penalties, federal tax withheld, and foreign tax paid.

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401(k) Plan

A deferred compensation plan set up by an employer. A portion of your earnings is deducted and placed in a qualified retirement plan. Your employer may match a percentage of the amount you have withheld. You are not taxed on either the amount deducted from your pay or your employer's matching amount until you receive distributions, usually at retirement.

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