1. Finance

A Short Guide to IRS Transcripts

Disclaimer: This is a user generated content submitted by a member of the WriteUpCafe Community. The views and writings here reflect that of the author and not of WriteUpCafe. If you have any complaints regarding this post kindly report it to us.

You undoubtedly know that you should maintain copies of your tax returns for a certain number of years after you've filed them, but things come up. If you need a copy of an old tax return but don't have it, you can get IRS transcripts. The IRS does not charge you for any of their tax forms or records.

Exactly what is an IRS transcript?

Although not presented similarly, your tax transcript contains the same data as your tax return. You can review your income, tax status, and claimed credits and deductions. However, the transcript will not include your name or other identifying information.

The IRS has been doing its part to stop identity theft and other forms of fraud. To prevent identity theft, it now “masks” or obscures sensitive information on your transcript, such as the last four digits of your SSN, your full phone number, and any accounts that may be linked to that number. However, all of your tax-related financial details are shown in full.

For what purposes would you require an IRS transcript?

There are many scenarios in which you would require transcripts. You could be looking for your adjusted gross income (AGI) or verifying and confirming your tax payments. Most people get transcripts when they must prove their income for financial aid or loan applications. Applying for federal health care programmes or subsidised housing may also necessitate official transcripts.

You may have come to terms with the fact that your record-keeping practises are less than stellar and that you have nothing written down to show for your dealings with the IRS. Most taxpayers may easily obtain transcripts without too much hassle.

Types of IRS transcripts available

There are five distinct of IRS tax transcripts available.

  1. Tax return transcript

This version is the most typical one. It displays almost all the data from your original tax return line by line. If you used form 1040-x, it wouldn't include such data in its report.

Individual tax returns can be changed using Form 1040-x. It modifies a previously filed Form 1040 by making changes, deletions, or additions. If you receive a W-2 or 1099 for the income you didn't report, or if your ex-spouse claims your child as a dependent on their taxes, you may need to file a 1040-x.

  1. Tax account transcript

You'll find more information in this transcript. Your taxable income in all its forms and the timing, method, and amount of any payments you've made are all part of your age.

  1. Record of account transcript

Select this transcript to read a mashup of the previous two.

  1. Income and wage transcript

This one display financial data, such as tax returns and IRA contributions (W-2, 1099, and 1098)

  1. Verification of non-filing letter

This is the method to employ if you need to show that your income was too low to warrant filing a tax return for a specific year.

Conclusion

The IRS transcripts are useful in many situations, including loan applications. They may be obtained easily and cover the current year and the previous two. Don't hesitate to contact the Internal Revenue Service or a licenced tax professional for advice on your situation.

Login

Welcome to WriteUpCafe Community

Join our community to engage with fellow bloggers and increase the visibility of your blog.
Join WriteUpCafe