Tuesday, December 9, 2014

Which Tax Form Should You File?

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.