Form 1040
Definition
The main US individual income-tax return, on which taxpayers report income, claim deductions and credits, and calculate the tax owed or refund due for the year.
Related Terms in US Tax
Form 1120
The US federal income-tax return filed by C corporations to report income, deductions and the corporate tax owed. S corporations instead file Form 1120-S.
Form W-9
The US form a business requests from a contractor or vendor to collect their taxpayer identification number and certification, so the business can correctly report payments on a 1099 and avoid backup withholding.
Backup Withholding
A requirement to withhold a flat percentage of certain US payments and remit it to the IRS when a payee has not supplied a valid taxpayer identification number or is otherwise flagged. It ensures tax is collected despite missing details.
MACRS Depreciation
The Modified Accelerated Cost Recovery System, the standard US tax method for depreciating most business assets, which assigns assets to classes with set recovery periods and accelerated schedules.
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