Understanding your taxes and knowing the difference between the necessary forms is an important part of staying up to date with the annual tax filings. There are a number of tax forms that are used during the process and the most commonly used ones include the W2, W4, W9, 1040 and 941. The W2 is a form that is mailed or provided to you at the end of each year. This form reports to you the amount of money you made from your employer for the current year as well as how much money you had withheld for federal and state taxes. You will have multiple W2 forms if you were employed by more than one company. This form is necessary when filing your tax return.

The W4 is the form that you fill out when you are first hired at a company. You may also request to change information on this form whenever the need arises. This form is what is reported to the Internal Revenue Service, or the IRS, and tells how much money you are withholding from your payroll check. This form should be completed once per year, or whenever personal or financial information changes. If you decide to exempt from withholding taxes, you are only required to fill in lines 1 through 4 and 7. Once you have completed these lines, sign the bottom of the form. If you are not eligible to exempt, fill in the entire form.

The W9 is needed when you are requesting an identification number and certification for a business. In order to fill out this form, simply enter the information as requested. This form requires you to enter your name, the business name, the classification of your business, your address and your tax identification number or certification information. Form 941 is used to report taxes on a quarterly basis. This form is typically used by businesses or contractors. Simply fill in your tax liability each day for each of the three months you are filing for.

The 1040 form can be a bit confusing when it comes to determining which 1040 form to fill out. There is the 1040 form, the 1040EZ form and the 1040A. Form 1040 is filled out if your taxable income is more than $100,000 for the year. If your taxable income is less than $100,000 for the year, you fill out either the 1040A or the 1040EZ. The determining factor is whether you plan to itemize any deductions or claim any tax credit or income adjustments. The 1040A is used if you do plan on itemizing or adjusting any factors.

In addition to understanding which tax form you need to use, there are a number of important terms that are helpful to be familiar with. These include:

1. Adjusted Gross Income. This is simply defined as the final number that is your taxable income after you have subtracted any deductions from your total income.
2. Deduction. Deductions are expenses that are allowed to be deducted from your total taxable income. The deductions that are allowed are determined by the Internal Revenue Service and can range from certain appliances to business expenses.
3. Standard Deduction. This term refers to a preset amount that is set by the IRS in an effort to lower the adjusted gross income.
4. Itemized Deduction. Itemized deductions include expenses such as charitable donations, property taxes, medical expenses and mortgage interest.
5. Exemption. This term refers to the dollar amount that you are allowed to deduct from your taxable income. For instance, if you have children, this is a deduction.
6. Taxable Income. This is the amount of your income after you have subtracted your claimed exemptions and deductions.
7. Withholding. This term refers to the amount of money that is held from your check to go towards your tax payments.

The IRS enforces tax laws in an effort to ensure that federal and state taxes are paid. Approximately 84 percent of taxes that are owed are paid voluntarily and on time. In order to pay taxes on time it is helpful to know where to file your state and federal taxes. State taxes should be filed with your state’s Department of Revenue. When filing your federal tax return, the exact location depends on the state in which you reside as well as whether or not you are including a payment with the information.

• Understanding Taxes: This site provides you with information from the Internal Revenue Service in regards to understanding taxes for both teachers and students.
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• How to File Taxes Online: This site provides you with information on how to file taxes online in order to meet the annual deadline.
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• U.S. State Tax Forms: Access the appropriate forms that you need in order to file your state income tax return. This page allows you to navigate to the state you need forms for.
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• How to Fill in Your Tax Return: This PDF document provides you with the information you need in order to properly fill out your tax returns.
• Payroll Tax Forms: This site provides you with information on filling out Form 941 to report the number of employees you have as well as the total wages and withholding for the year.
• How to Owe Nothing on Your Federal Tax Return: this article provides you with information and tips on filing taxes so that you save money and do not owe anything at the end of the year.
• Tax Returns: This site provides you with information on filing taxes, tax return deadlines and the various forms that are available to fill out.
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• Tax Filing Information: This site provides you with a list of links on filing taxes and additional information regarding taxes.
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• Tax Information for Individuals: Learn everything you need to know about filing your taxes as an individual person. This site provides you with extensive information on filing taxes from deadlines to penalties and specific regulations.
• Michigan Taxes: Information on the wide range of taxes that are applicable in the state of Michigan.
• California Tax Service Center: Information on income, payroll and sales and use tax in California.
• Minnesota Department of Revenue: Tax information as it relates to the state of Minnesota. An example of the typical information that a state’s Department of Revenue provides you with.
• Business Tax Information: Information on taxes as related to businesses.
• Tax Incentive Information Center: Information on the current tax credits for different vehicles.
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• Federal Tax Guide: Information on filing federal taxes ranging from basic tax planning to filing taxes and exemptions.
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• Tax Guide: This tax information portion of the site provides you with links to more information on tax news, videos, applications and forums to discuss information with others.
• Business Tax Guide: This PDF document provides you with a comprehensive amount of information on filing taxes and regulations for businesses when speaking in terms of taxes.