Income Tax Return Forms for Individual Taxpayers - as provided for by the New Tax Reform Laws (TRAIN)

April 15, 2023 Income Tax Filing is fast approaching and for that note, I would  like to highlight important issues about ITR filing of individual taxpayers.

There are three (3) types of ITR forms (Shown Below) available for individuals which were introduced in the new Tax Reform Laws (TRAIN) using any of these depending on the activities being performed by the taxpayer and depending on the manner of determining the tax due.

• The Form 1700 – is to be used by individuals earned purely compensation income, but their earnings came from various employers during the year, as such they did not qualify for substituted filing. With this form, all income generated from various employment has to be summed up, to get the taxable income; refer to the applicable tax table to determine the tax rate applicable to come up with the TAX DUE; from the computed tax due all the taxes withheld by the employer(s) supported by a withholding tax certificates (BIR Form 2316) is to be deducted and the remaining if any has to be paid on or before April 15, of the filing year. 
  
  
• The Form 1701 – to be used by individuals who have mixed income, Estate and Trusts.
  
  Mixed Income means the individual taxpayer earned from employment and the same time from running a business on the side. 
  
  Trusts and Estates are legal structures that administer assets while the transfer is in progress going to the heirs and beneficiaries.
  
  Use this form 1701 if there's income to combine side by side from other sources, the most relevant example is income from employment and business; and when the taxpayer opted to use  the Graduated Tax Rate with an Itemized Deduction Method.
  
  
• Form 1701A – to be used by individuals earning only from business and or profession. This form is to be used also by individual taxpayers who opted for the Optional Standard Deduction Method (OSD) or those taxpayers who availed of the 8% flat rate vs the gross income lieu of percentage tax and income tax.
I hope that this simple presentation helps individual taxpayers shed out confusions which form to use for their ITR filing for the year ended 2022. 

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