Tax Transcript and Tax Return: How are they different from each other?

Tax Transcript and Tax Return: You may request a tax transcript from the IRS when you are required to provide information about your financial situation, such as when applying for financial aid or a loan.

In numerous circumstances, you might be required to furnish evidence about your earnings, assets, and tax obligations. Consider the following situations: obtaining a mortgage, applying for financial aid for college, or purchasing life insurance. There are two primary methods by which one may accomplish this via the Internal Revenue Service.

While both tax returns and tax transcripts can be utilized to disclose personal financial information, they differ in the level of specificity they provide. Although the tax transcript is more readily available from the IRS, it provides a restricted range of information, with various varieties presenting distinct particulars. Although more difficult to obtain, a copy of your tax return provides a more comprehensive overview of your financial situation.

What varieties comprise a tax transcript?

Five types of tax transcripts are available upon request from the IRS at no expense to the taxpayer, in contrast to the cost of a copy of one’s tax return. Five distinct varieties of tax transcripts include the following:

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Tax return transcript

It includes most of your tax return information, such as your adjusted gross income, and any schedules and forms. Mortgages and student loans require returns processed within the past three years to qualify for these benefits.

Tax account transcript

This contains the bare minimum of information, including the type of return, marital status, adjusted gross income, taxable income, and all payment categories. It is available for request for any of the ten years before the current one.

Record of account transcript

The most exhaustive translation available comprises the contents of the two preceding transcripts. Similar to the tax return transcript, its accessibility is restricted to the preceding three years.

Wage and income transcript

It is possible to access the IRA Contribution Information on Forms W-2, 1099, 1098, and 5498 until July of the following year. Information from the previous ten years is accessible to filers.

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Verification of non-filing letter

If proof is needed, the IRS does not have a record of a tax return filed for a specific year, but it does not specify whether you were required to file. You may begin requesting one of these for any of the three years prior, as of June 15th.

How to request a tax transcript from the IRS

Through the IRS-run Get Transcript Online portal, getting a tax transcript is the most effective method. For transcript access, provide a credit card, mortgage, or similar account number.

Request a hard copy of the transcript by calling 800-908-9946.

If you choose these non-electronic methods, we will typically deliver the physical transcript within five to ten calendar days.