Use the Tax Form that fits You
Filing your Federal Tax Return requires you to, a 1040 form. But there are a number of 1040 forms available depending on the complexity of your return. Here are the criteria to consider when selecting a 1040 form.
The 1040EZ is used when your taxable income is less than $100,000, your are married filing joint or single, you are under the age of 65, not blind, you have no dependents, your income from interest earning accounts produced less that $1,500 during the year, and you do not plan to take certain deductions.
The 1040A can be used when your taxable income is less than $100,000, you do have some capital gains, you do have tax credits, and you plan to claim an IRA deduction, a student load deduction, an education expense, or a higher education expense.
When you cannot use the 1040EZ or the 1040A, you need to file the 1040 (sometimes called the long form). This happens when your income is greater than $100,000, you want to itemize on Schedule A, you have Self-Employment income, and you have capital gains from the sale of a home. The 1040 long form isn’t as impossible to complete as you might think and tax preparation software like TurboTax will use the form if your situation requires it.