What Tax Forms Should You Use?
There are so many tax forms that it can be difficult to determine which forms you need for your specific issues. What do you do with tax forms 1040A or 1040EZ or 1040? What does all of this mean exactly? The forms are used according to the needs of your circumstances. Here is a list of when to use which IRS tax forms, according to the IRS:
Use the 1040EZ if:
• You have income of less than $100,000
• You are filing as Single or Married, Filing Jointly
• You are not blind, and you and your spouse are under 65 years old.
• You have no dependents
• You have income from interest that is under $1,500
This is the quickest and most simple form that many people file because it can be done within an hour or two, if you are filing your income tax yourself. If you have a simple and straightforward form with no complications this is the one that you should file. If you are not filing deductions from anything and you do not have a small business then you are safe filing this tax form.
Use the 1040A if:
• Your income is less than $100,000
• You have distributions from capital gain
• You claim tax credits
• You have deductions from: student loan interest, higher education tuition and fees, IRA contributions, or expenses as an educator
If you have a situation that is a little more complicated, and you want to claim the deductions listed here than the 1040A works very well. It is easy to fill out and you can just follow exactly what it tells you to do on this IRS tax form. There will be additional tax forms to fill out if you have deductions because each will have its own necessary IRS tax form to fill out.
Use the 1040 if:
• You have income that is at least $100,000 or more than $100,000
• You have itemized deductions
• You have self-employment income
• You have income from property that you sold.
When you have self-employment income, or you make over $100,000 this is the tax form to fill out. Although it is fairly simple to do there will be extra forms to fill out for your various deductions.
Other Forms You May Need
You will also need to contact your individual state for the state tax forms that you need, because different states have different state tax forms. This is important and these forms are usually easier than the IRS tax forms. In addition, you might need to fill out Schedule C for small business income, IRS tax form 4868 if you need an extension, and Form 9465 if you have to make payments towards your owed tax. More information can be found at www.irs.gov.
Melissa Sequiera is an experienced freelance writer and Chief Editor of The Freelance Writing Desk.