If you are interested in knowing how the IRS Tax Transcript works, each type of tax transcript and how to request one, among other things, that will surely interest you, you are in the right place. Keep reading this article to clarify your doubts.
What are IRS Tax Transcripts
IRS tax transcripts are obtained from the applicant’s past tax information. Simply put, IRS tax transcripts are summaries of the applicant’s tax return information.
IMPORTANT: You can request an IRS tax transcript completely free of charge, and at any time.
What an IRS Tax Transcript is for
An IRS Tax Transcript can be used for a variety of purposes, such as proving your monthly income to lenders, if you are applying for a mortgage or car loan.
In addition, you can use this transcript to keep track of the latest movements around your previous tax returns, with detailed information. In fact, an IRS tax transcript will be of great help to you when calculating the amount of money you will have to pay in the future, in case you have an estimate amount.
What information can I access with an IRS Tax Transcript?
Among the personal data you can access with tax transcripts, only the last four digits of your Social Security number, for example, will be shown, since only partial information can be accessed.
However, there are exceptions to the rule, and that is that tax and financial information (taxable income or salary) is fully visible. Depending on the type of transcript, which we will mention in the next section, is the information that can be accessed.
Types of transcripts
As mentioned above, IRS Tax Transcripts can be divided into five types. Let’s take a look at each of them below.
Tax Return Transcript
In a tax return transcript, you will be able to view the original IRS Tax Transcript items, and you will be able to access the forms and schedules.
This will be useful in case you want to apply for student loans or mortgages. Generally, it is available for the current year and the last three tax years.
Tax Account Transcript
With the tax account transcript, you will have access to information about your tax return, AGI, taxable income, marital status and any other paid transactions you have made. In addition, you will be able to review each movement of your account, where you will see adjustments regarding interest, penalties, audit and, a very useful information, it allows you to know, in case you have a tax debt, what is the amount you owe.
Record of account transcript
This is a mix between the tax bill and the tax return. This Transcript is usually valid for the current year and the previous three tax years.
Wage and Income Transcript
In this type of transcript, all data related to wages and income is shown through different forms, such as the 5498, 1098, 1099 and W-2. It is likely that this information for the current year will not be available until approximately mid-year (July).
Verification of Non-Filing Letter
The verification of non-filing letter means that the IRS has not yet been notified that you have filed a form for the tax periods. These forms can be 1040, 1040A or 1040EZ.
This letter, in a sense, replaces the unfiled tax return. In this case, you may receive a verification of non-filing letter from the IRS. The advantage of this letter is that you can request it along with the income and wage transcripts.
This way, you will be able to prove that you are not required to file, since you did not file any IRS Tax Transcript during these years. The purpose of the verification of non-filing letter is for financial aid and FAFSA (Free Application for Federal Student Aid).
It is worth mentioning that a Tax Transcript is not a photocopy of your tax return. In case you need the latter, you will need to download form 4506, complete it and attach the indicated fee. Once ready, you must mail it.
How to request an academic transcript
If you wish to request an academic (transcript) certificate, you can do so through different means, which we will explain below.
To request your transcript in person, you must go to one of the Taxpayer Assistance Centers with the required documentation (valid ID and a photograph). You can go to this link to know all the details of the IRS offices in the different states of the country.
As most of the procedures can now be done online, the IRS has the option of requesting your transcript from the web, by clicking on the “Get transcript” button.
Before we begin to explain the steps that you must follow to complete this procedure, the first thing you should have at hand is your personal information, so that the system can verify your identity. The documentation you will need is as follows:
- Social Security Number (SSN).
- Date of birth.
- Filing status.
- Mailing address from last tax return.
- E-mail address (which you used to create the account).
- Credit card number, or the account number of the auto loan, home equity loan or line of credit.
- Applicant’s cell phone number.
Steps to apply for the transcript online:
- Enter the following link to obtain your IRS Tax Transcript.
- Locate the “Get Transcript Online” button and click there.
- Log in to your account or, if you do not have an account, create one.
- Indicate the type of tax period.
- Select the year.
HINT: If the transcripts are for you, you do not need to enter the “client file number”.
Send by mail
If you prefer to receive your Tax Transcripts by mail, you must request them online or by phone. Here’s how to do each.
- Online request: You must access this link and you must have the following documents at hand:
– Social Security Number (SSN) or Individual Taxpayer Identification Number (ITIN).
– Date of birth.
– Mailing address of the last income tax return.
- Request by phone: To request your transcripts by phone, you can call 18009089946.
FACT: Transcripts will arrive at the address you registered with the IRS, and will take 5 to 10 business days to arrive.