Filing tax returns can be a maddening task for any person. It requires a lot of effort to keep track of all income and expenses throughout the year. Some people even hire tax consultants to do their personal tax returns.
However, if you cannot afford the steep fees of some of these consultants, you may have to make the best of your diligently kept records do it yourself. More excruciating than paying the actual income taxes is filling out the federal income tax forms. With so many complicated forms and the little time to submit them, one needs every bit of guidance he can get.
Filing tax forms the quick and easy way
That’s when we turn to Turbo Tax for filing federal and state tax forms. Based on your answers to simple questions the correct 1040 income tax form will be generated for you. Your answers will be placed into the correct boxes for you and you will not have to read line by line instructions.
The Internal Revenue Service (IRS) prescribes three tax forms that you can fill out each year. Depending on the size of your taxable income, you can choose any one of these three forms to file your return.
The three 1040 tax forms
These forms are called the 1040, the 1040A and the 1040EZ. However, keep in mind that the forms are only for individuals filing their returns. There are separate sets of forms to be filed by corporations or associations owned by some people. Compared to the federal business forms or Schedules, the individual forms are much simpler and straightforward.
The 1040 tax form is also known as the standard or long form. All United States residents can use this form to file their tax returns as long as the amount of their taxable income is equal to or in excess of $100,000, they are entitled to itemized deductions, they have earned income from the sale of property or income from self-employment.
Among various federal forms, this is the form that a majority of American taxpayers use despite the fact that it is the most complicated and lengthy one to fill.
The easy 1040 tax forms
A much simpler form is the 1040A which does not require filling out as many supplemental forms as other forms like the 1040. Individuals whose taxable income is less than $100,000 can fill out the 1040A form. Instead of itemized deductions, these individuals are entitled to the standard deduction. In addition, they have ATL or above-the-line deductions.
Lastly, the 1040EZ form is the simplest of the tax forms. It can also be filed by individuals with taxable income lower than $100,000. In addition, other limitations such as single or married filing jointly status, being under 65 years of age and not having any dependents apply.
Tax software like TurboTax will choose the best tax form for your personal situation. You’re guaranteed the biggest refund possible and you will also have many choices for support such as, picking up the phone or one on one chat to get answers for your questions.