What Is A Tax Transcript (Explained: All You Need To Know)

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What Is A Tax Transcript

A tax transcript is a document issued by the Internal Revenue Service outlining your income and providing details information relating to your previous tax returns.

A tax transcript is typically used to show lenders and government authorities proof of your income.

On your tax transcript, you can find out how much money you owe the IRS, look at your payment summary, see your prior year’s adjusted gross income, and view other tax records.

You can generally ask for a tax transcript for the current tax year and the three prior years.

In most cases, people will ask for a tax transcript to show proof of their income when applying for a mortgage or a loan, or students applying for a student loan of some kind.

Why Do You Need A Tax Transcript

You may need to get a tax transcript for many reasons.

The primary reason why you may need to get your tax transcript is to show proof of your income to a company or government agency.

For example, if you are applying for a mortgage, your lender may ask for your tax transcript evidencing your income.

This allows your lender to see how much was your adjusted gross income in the current or previous years.

You can also get a copy of your transcript to see if you owe any money to the IRS or whether they owe you anything.

On your transcript, you should be able to see your payment history and how much you potentially owe to the government.

If you owe money, you should either pay it or take action to avoid interest charges and even seeing the IRS take tax recourses against you.

How To Get Your Tax Transcript

Getting your tax transcript from the IRS is quite simple.

If you have an online IRS account, you can log into your account, click on the “Tax Records” tab, and select the tax transcript that you need.

If you do not have an online IRS account, you can contact the IRS to get it.

One option is to ask for the tax transcript using the IRS online tool. 

You start the process by clicking on Get Transcript Online.

Another way of getting your tax transcript is to request it by mail (you’ll need IRS Form 4506-T).

You’ll need to send a letter to the IRS, provide your mailing address, and expect to receive a response from them in 5 to 10 calendar days.

Another option is to call the IRS by phone at 1-800-908-9946 to request the tax transcript.

Takeaways 

So there you have it folks!

What is a tax transcript?

A tax transcript, also known as a tax return transcript, is a document that shows your adjusted gross income (AGI) from your original tax return.

You can request your tax transcript through your IRS account online or by visiting the IRS website.

Now that you know what is a tax transcript, how to get it, and what information it gives you, good luck with your research!

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