Tax season is here, and for those people who have never filed their taxes themselves before, the first step is deciding which form to use. Gone are the days where the IRS mailed taxpayers the proper form to complete. In the age of electronic filing also known as e-filing, the work is now on the taxpayer to figure this out.
Tax software provides 1040 tax forms
If you are confused about the tax process, don’t worry. There are still plenty of free resources out there through community outlets and even the IRS website. Of course if you still feel lost and would prefer to not have to handle the task yourself you can always use online tax software to prepare and file your return for you.
You can file your IRS 1040 tax form the quick and easy way with tax programs offering powerful tax software. You are guaranteed accurate calculations with the biggest tax refund possible.
Should you use paper tax forms or e-file 1040 forms?
So you have your W2 tax form and all other pertinent tax information, now to decide which form to use. If you use tax software to file your return the system will automatically choose the correct 1040 tax form for you. However if you plan on filing paper tax forms, you will need to figure it out for yourself. There are some general rules to keep in mind when choosing which form to use. We will go over them here.
The 1040ez, 1040a, and the 1040 income tax form
The tax form 1040EZ is for the simplest of tax situations. Income must fall below $100,000 and your filing status must be single or married filing jointly. Also you and your spouse must be under the age of 65, and not blind. You must not be claiming any dependents and your interest income can be no more than $1,500. If you meet all of these rules then you should use the form 1040EZ.
The form 1040A is a for slightly more complex tax situations than those who use the 1040EZ. Income must still be below $100,000 to use this form. If you have capital gain distributions, you claim certain tax credits as well as claim adjustment to income for IRA contributions and student loan interest then the 1040A is the form you will need to use.
That leaves us with the IRS tax form 1040. If you do not meet the guidelines listed in the above paragraphs for the 1040EZ and the 1040A, you will most likely need to file using the form 1040. Some reasons why you might have to use the 1040 form include your income being more than $100,000, you claim itemized deductions, you have self-employment income to report, or you are reporting income from sale of property.
Everyone’s tax situation is different, and depending on the complexity of what credits, deductions, or income you have there is a 1040 form for each one. Tax season can be a frustrating time for many Americans as they get confused by the laws and everything else that comes into play. Identifying the proper form to use when filing your taxes is one of the best ways to ensure you complete your taxes properly and avoid any delays.
Tax software helps you choose correct tax form
If you should chose to use online tax software such as, TurboTax, they will choose the correct 1040 tax form for you and place your information into the correct tax entry box too. You can have the peace of mind knowing your income tax return is filed correctly, and with the guarantee of the biggest tax refund, or least tax owed!