Most people in the United States who have had to fill out an income tax form most likely have heard about the Federal Income Tax Form 1040A. It is the most commonly used form at the Internal Revenue Service. With that said, there are some things that people may not be aware of when it comes to this form.
Folks will use tax form 1040A to file income tax forms to report their income. Filing the 1040 will also determine how much in federal taxes they are getting as a refund or how much they have to pay to the Internal Revenue Service.
Which form to use?
The 1040A is the short version of the form 1040. The 1040EZ is the easiest and is mainly used when they are no to little deductions. With 1040A, you can claim deductions and tax credits. Compared with the 1040EZ the 1040A lets you claim IRA dedications in addition to claiming student loan interest.
There are benefits in using form 1040A and that is it is faster to complete than the standard 1040 as well as being quicker for the IRS to process. If you are owed a refund, the faster your paperwork is claimed and accepted, the sooner you will get your refund.
To qualify to use form 1040A there are six different conditions that you have to meet. Your income must have been from wages, interest, dividends, scholarship, Social Security or pensions. You have to claim at least one of the following adjustments: IRA contribution, student loan credit, college tuition and fees deduction or classroom expenses.
Your taxable income must be $100,000 or less. You had no incentive stock options or you are claiming only the credits owed to you such as child tax credit, earned income credit, education credits, and credit for dependent care of the elderly and disabled.
Tax software does the job for you
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