There are three different forms to consider when filing your taxes:
– 1040EZ
– 1040A
– And 1040
We’re here to help you figure out which one it is you should use.
The 1040EZ form called the Income Tax Return for Single and Joint Filers with No Dependents, is the least complicated federal tax form. However, if you decide to use this form, you should be aware that the 1040EZ prevents you from having itemized deductions or claim any adjustments to income or tax credits other than earned income. Keep in mind that you cannot use this form to claim Premium Tax Credit or to receive advance credit payments in 2017. You should only use 1040EZ if:
– You’re filing as single or married filing jointly, you have no dependents, were under the age of 65 on January 1, 2018 and were not blind at the end of 2017.
– Taxable income is less than $100,000 and is derived only from wages, salaries, tips, taxable scholarship and fellowship grants, unemployment compensation or Alaska Permanent Fund dividends.
– Taxable interest is not more than $1,500.
– You don’t owe any household employment taxes on wages paid to household employee.
The 1040A form called U.S. Individual Income Tax Return, may be the form to use, if you cannot file the 1040EZ, but like the 1040EZ there are restrictions. The 1040A does not let you itemize, but you can claim other tax deductions like the IRA deduction, student loan interest deduction, or the educator expenses deduction. The 1040A is also good if:
– Taxable income is less than $100,000, derived only from wages, salaries tips, interest or ordinary dividends, taxable scholarships and fellowship grants, pensions, annuities, IRAs, unemployment compensation, Alaska Permanent Fund dividends and taxable social security or railroad retirement benefits.
– The only tax credits that can be claimed are child tax credit, child credit and dependent care expenses, credit for elderly or disable person, education credits, retirement savings contribution credit, and earned income credit, and/or any premium tax credit.
– You don’t have alternative minimum tax adjustments on stock you have acquired from an incentive stock option.
– You have distributions from capital gains.
When filling out the 1040, U.S. Individual Income Tax Return, remember:
– Your taxable income is $100,000 or more.
– You have income from business, or farm self-employment income, unreported tips, dividends on insurance policies that exceed total of all net premiums you paid for the contract, income received as a partner, shareholder in an S corporation or if you have income from an estate or trust.
– You itemize deductions or claim certain tax credits or adjustments to income.
– You report self-employment income and income from the sale of a property.
– You owe household employment taxes.
Be aware that if you are a Nonresident alien, married to a U.S. citizen or resident alien, you may use any one of the three forms based on which circumstances you fall under, only if you so chose to be treated as a resident alien when filing a joint return. Nonresident aliens, filing single, may have to file either form 1040NR-EZ or form 1040NR.