March 2022 - Page 2 of 2 - Tax2efile Blog

Form 1099-K Third-Party Transactions

The IRS Form 1099-K of the United States refers to third-party transactions and is used for reporting payments that are received through payment card transactions such as credit card, debit card, and third-party network transactions. The payment processing organization sends a Form 1099-K to the recipient when there are more than 200 such transactions and the gross payment exceeds $20,000. Self-employed individuals and independent contractors can report 1099-K on Schedule-C of the federal tax Form 1040.  Who...

Form 1099-OID, Original Issue Discount

The IRS Form 1099- OID is used to report Original Issue Discount that is associated with the debt instruments and it is used to report income when the notes, bonds, and certificates of deposits mature. The OID is the difference between the face value of the debt instrument and its original cost. The face value of the instrument at the time of its maturity will be higher than its original value and this is regarded as a...

Know Everything about 1098-T Form: Tuition Statement

The IRS Tax Form 1098-T helps to calculate the educational credits and deductions on tuition fees for students. This tax Form applies to tuition fees and other relevant expenses of students, for the tax year.  Eligible academic instructions will send Form 1098-T to the students for their educational expenses in the previous year. The fees that qualify for deductions under this tax Form include the tuition fee, fee for course material, enrollment fee, etc. The institutions will...

How to File Form 1120-S | 7004 Business Tax Extension

S Corporation is a tax status offered by the IRS to a business. It generally serves as a pass-through entity for the corporation, that passes its income and its losses through its shareholders to gain income tax benefits. Form 1120-S is used by such S corporations to file their federal tax return with the IRS every year. This form is used to report the gains, deductions, income, and losses of the business during the current tax year. ...