Tax Tips #338

Choose the simplest Federal Tax form you can when filing your own tax return.

There are three types of 1040 forms you can use when filing your individual return. If you are self-employed, you must use Form 1040; however, you may qualify to use either Form 1040A or Form 1040EZ.

The simplest form is Form 1040EZ and you qualify to use it if can answer yes to ALL of these:
-Your taxable income is below $100,000.
-You are Single or Married Filing Jointly.
-You (and your spouse) are under age 65 and not blind.
-You do not claim any dependents.
-Your interest income is $1,500 or less.

You may be able to use Form 1040A if you can answer yes to ALL of these:
-Your taxable income is below $100,000.
-You have capital gain distributions.
-You claim certain tax credits.
-And you can claim deductions for IRA contributions, student loan interest, educator expenses or higher education tuition and fees.

 
This information is provided in an effort to help you gather and organize the information necessary to file your individual or small business income tax return. While these financial tools are not a substitute for financial advice from a qualified professional, they can be used as a starting point in your decision making process.