Tax Form Explainers

What each form is, who gets it, why it matters.

W-2

Wage and Tax Statement

Shows your annual wages and taxes withheld by your employer. You need this to file your federal and state tax returns.

Nonemployee Compensation

Reports freelance, contract, or gig income of $600+ from a single payer.

Interest Income

Reports interest earned from bank accounts, CDs, bonds, or other interest-bearing accounts.

Dividends and Distributions

Reports dividends from stocks, mutual funds, or ETFs, including qualified dividends taxed at lower rates.

Payment Card and Third-Party Network Transactions

Reports income from payment processors like PayPal, Venmo, Stripe, Etsy, or Uber when you exceed reporting thresholds.

U.S. Individual Income Tax Return

The main federal tax return form that every individual filer uses. All income, deductions, credits, and tax calculations flow through this form.

Profit or Loss from Business (Sole Proprietorship)

Reports self-employment income and business expenses for sole proprietors, freelancers, and gig workers.

Self-Employment Tax

Calculates the 15.3% Social Security + Medicare tax that self-employed individuals owe on their net earnings.

Employee's Withholding Certificate

Tells your employer how much federal income tax to withhold from each paycheck. Getting it right avoids a big tax bill or excessive refund.

Proceeds from Broker and Barter Exchange Transactions

Reports stock, crypto, mutual fund, and other investment sales. Shows your proceeds and cost basis for calculating capital gains or losses.

Tax education only. Based on IRS form instructions.