Which form should you
use to file your federal income taxes? These days, most people use a computer
to prepare and e-file their tax forms. It’s easy, because tax software selects
the right form for you. If you file on paper, you’ll need to pick the right
form to use.
You can generally use the 1040EZ if:
·
Your taxable income is
below $100,000;
·
Your filing status is
single or married filing jointly;
·
You are not claiming
any dependents; and
·
Your interest income
is $1,500 or less.
The 1040A may
be best for you if:
·
Your taxable income is
below $100,000;
·
You have capital gain
distributions;
·
You claim certain tax
credits; and
·
You claim adjustments
to income for IRA contributions and student loan interest.
However, reasons you must use the 1040 include:
·
Your taxable income is
$100,000 or more;
·
You claim itemized
deductions;
·
You are reporting
self-employment income; or
·
You are reporting
income from sale of a property.
This article is collated (from IRS web site) by VXL Services.
VXL Services is recognized for its comprehensive service offerings and includes Accounting, Tax Preparation and planning, Payroll and CFO/Controller services. Their web site is www.vxlservices.com
If you have any questions regarding his article or would like to inquire about VXL Tax Planning and Preparation services please contact Prakash Iyer CPA at (732) 983 - 4150 or at prakash@vxlservices.com.
