Tuesday, February 21, 2012

Which is the tax form fits you?


 1040, 1040A or 1040EZ
You should use the simplest tax form for your needs. This will save you time in preparing your return, and the IRS will be able to process your tax return more quickly.
Form 1040EZ is the shortest and easiest federal tax form.
Form 1040A, or "short form" allows you to claim the most common adjustments to income.
Form 1040 can be used by anyone. Even though it takes longer to fill out, it can handle any tax situation no matter how complex.

1040
1040A
1040EZ
Filing Status
All
All
Single or married filing jointly
Dependents
All
All
None
Income
Total can be any amount
Total must be under $100,000 after deductions
Total must be under #100,000 after deductions and exemptions
Sources must be only
Same as 1040A and all other sources of taxable income including
·         Lottery and gambling winnings.
·         Self employment
·         Rental
·         Alimony received
·         Sale of property/stock
Same as 1040EZ and the following sources:
·         Interest (any amount)
·         Ordinary dividends
·         Capital gain distributions
·         IRA distributions
·         Pension income
·         Social Security
·         Wages
·         Taxable scholarships
·         Interest income (totaling $1,500 or less)
·         Unemployment compensaton
·         Alaska Permanent Fund dividend
Adjustments
All
·         Educator Expenses
·         IRA deduction
·         Student loan interest deduction
·         Tuition and Fees
None
Deductions and Exemptions
Itemized deductions or standard deductions and exemptions
Standard deductions and exemptions
Standard deductions and exemptions
Credits
All
·         Earned income
·         Child and dependent care
·         Child tax
·         Elderly/Disabled
·         Education
·         Retirement savings contributions
Earned income


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