Tax Transcripts are a critical component of tax preparation. They show the IRS what you have paid in taxes, and they can help to determine if you qualify for a refund or a balance due on your tax return. Tax transcripts also provide information about income and how much money has been withheld from your paycheck during the year. There are many reasons why it is important to request copies of your tax transcripts each year, so we will discuss them here in detail!
What Are Tax Transcripts?
Tax transcripts provide information about your income and taxes paid during the tax year. Your employer will give a copy of this to you, but if it is lost or damaged, then requesting another one may be necessary. Taxpayers can view their online federal tax transcript through various methods including ordering them over the phone or getting copies directly from IRS outposts. The transcripts can also be sent to a third party such as an accountant, attorney, or other trusted business.
What Do They Show?
The transcript will show all the income that was reported on your tax return for the year in question. This includes wages, salaries, tips, and any other taxable income you may have received. It will also list any tax deductions or credits that you claimed on your return. The transcript will show the total amount of taxes that were paid during the year, as well as how much was withheld from your paycheck each month.
Why Does a Transcript Matter?
There are many reasons why it is important to request copies of your tax transcripts each year. Some of the most common reasons include:
- To check the accuracy of your tax return. It is always a good idea to double-check your return for mistakes before filing. The transcript can help you to verify that the information on your return is correct.
- To determine if you are eligible for a refund or a balance due. The transcript will show how much you have paid in taxes throughout the year. You can use this to calculate if you will receive a refund or be required to pay additional money on your return.
- To view income and tax withholding information for previous years. If you are looking at prior returns, then it would also make sense that you may need transcripts from those years as well.
Tax Transcripts Come In Different Forms
There are three different types of tax transcripts that you can request from the IRS. These include individual, business, and non-profit organization returns. All of them show similar information on income, but they may have slightly different formats depending on who requested it. The transcript will be in PDF format so it is easy to view and print out.
How to Request a Transcript
You can request a transcript in several ways. The most common way is to call the IRS at 800-908-9946 and order one over the phone. You can also visit an IRS outpost and pick up a copy, or you can go online and order it through the official website. It is important to note that ordering transcripts online is the only way to get an instant copy. If you order it over the phone or through the mail, then it may take up to two weeks for it to arrive.
What if I Can’t Get a Transcript?
There are certain situations where you may not be able to get a transcript from the IRS. This could be due to a missing tax return, incorrect information on the transcript, or if you are subject to an IRS lien. If this is the case, then you may need to contact the agency directly and ask for help.
It is always a good idea to keep copies of your tax transcripts each year. They can provide important information about your income and taxes paid. If you ever have any questions, then the transcripts can help to provide answers.
Get Compliant and Get Tax Relief
If you are missing a tax return, incorrect information on the transcript, or if you are subject to an IRS lien, then you may need to contact the agency directly for help. At Morris and Associates Tax Specialists, we can help you to get the information that you need. Morris and Associates are experts when it comes to helping individuals and companies find tax relief in Georgia but can help no matter where you live or whatever tax questions you have. Contact us to help with your taxes and possibly even reduce the amount that you owe.
