How Do I Know Which 1040 Tax Form I Need?

Individual tax returns may be filed by using a Form 1040. However, there are three specific types of forms which may apply to your specific needs. Which form you will be required to file is dependent on numerous factors. Fortunately, there is a simple way to figure out which form is best suited to your needs.

When to File 1040-EZ

The easiest form is 1040-EZ and there are limited number of people who can use the form. Single persons and couples who earn less than $100,000, claim only an earned income credit and have no dependents may be able to use this form. The exception to this is anyone who claimed a federal credit for the Affordable Care Act premium assistance, this would make you ineligible for 1040-EZ and would require you to file Form 1040A.

Who Should be Filing Form 1040A

Taxpayers who are filing a joint or single return who have earned less than $100,000 may be able to use 1040A if they do not meet the requirements for the easier form. This form allows for certain income adjustments including tuition and fees, student loans and IRA deductions. There are also some tax credits including dependent care, earned income tax credit and the ACA premium tax credits. Be certain to speak with an experienced tax preparer to ensure you are taking adjustments and deductions for which you are eligible. Filers will be unable to itemize deductions using this form and those who are receiving income from self-employment would be required to file form 1040.

When Form 1040 is Required

Taxpayers who are filing jointly or single and have taxable income of more than $100,000 should file Form 1040. This form also is used by those who have income from self-employment and farming as well as unreported tips and other income including S Corporations and those who have been a beneficiary of a trust or estate. Anyone who is intending to itemize their deductions or who have hired domestic help will also be required to use this form.

Let Our Tax Specialists Help

Tax time can be very stressful and if you are not filing the proper tax forms you could be missing out on tax credits and deductions which can lower your tax burden. Taxpayers who have any doubts about which forms are best suited to their specific situation should contact a skilled tax preparer. Residents of Central Virginia in Mechanicsville, Richmond, Hanover, Henrico and surrounding areas who wish to get assistance from tax specialists should contact Rue & Associates. We can help ensure your taxes are properly prepared, the necessary supplemental forms you need are included with your filing and you get the maximum possible refund or pay as little as legally required in taxes.