What is a tax transcript?It is an official document issued by the Internal Revenue Service that displays your income and tax information for a specific tax year. It is used to verify income and tax liability, apply for loans, or resolve tax issues.
Relevance, benefits, and historical contextThey provide a comprehensive view of your tax information for a specific year. As such, it is essential for financial planning, tax preparation, and identity theft protection. Historically, tax transcripts replaced the 1099-MISC form, which was often used to report income from self-employment.