What form is used for reporting additional taxes on qualified plans and other tax-favored accounts?

Form 5329 is specifically designed for reporting additional taxes on qualified plans, such as IRAs and 401(k)s, as well as other tax-favored accounts. This form is used when there are early distributions from these retirement plans or when taxpayers have failed to take required minimum distributions.

For example, if an individual withdraws funds from their retirement account before reaching the age of 59½, they may incur an additional tax penalty, and Form 5329 would be utilized to calculate and report that penalty. Similarly, if a taxpayer does not take the required minimum distribution from their IRA, this form helps in reporting the excess accumulation tax.

The other forms mentioned serve different purposes. Form 1040 is the primary document for filing an individual's annual income tax return. Form 1099 is used to report various types of income other than wages, salaries, or tips, including dividends or freelance income. Form W-2 is submitted by employers to report wages paid to employees and the taxes withheld. Thus, while all these forms play crucial roles in tax reporting, Form 5329 is the one specifically tailored for reporting additional taxes related to qualified retirement plans and other tax-favored accounts.