Who Should Use Irs Form 1040a?
April 15th is the dreaded day for all US workers. Many people wait until the last minute to complete their taxes even though the W-2 form must be provided to all workers by February through their employers. The majority of people do not go to an accountant or tax preparer, but simply choose to fill out the forms themselves. Before that dreaded day gets here, do you know what form you should use? Does the IRS form 1040A apply to you?
Income
What type of income do you earn? If you are self-employed or a contract worker then you cannot use this form. If you earn over $100,000 in one year then you don’t qualify to complete form 1040A. It doesn’t matter if it was all earned at the same company or a combination of job plus additional income. Income from pensions, or wages, taxable scholarships or even unemployement payments qualifies one to use this form. Don’t forget those earnings you made from selling your stocks. These too constitute income that can be added to your regular wages for the IRS. Likewise if you earning on the lower income spectrum you might be entitled to an earned income credit you can use this form as well.
Deductions
If you don’t have a lot of deductions then you will be able to use this form. If you have a medical condition or history that has a combined total of at least ten percent of your income, you don’t want to use this form. You can only use the standard deduction which is decided upon by the federal government each year. Your medical bills might add up to an amount greater than the standard deduction. In this case you’ll want to use 1040 with the itemized deductions. No need to leave any monies on the table when it comes to your tax return. You should take all the deductions you are allowed and qualify for. Just make sure that any deductions you take are legal.
Personal Information
If you are married or single you can use this form. If you have dependents then you can use this form. Dependents can be anyone that you are supporting ie a child or a health challenged parent. They can only be considered a dependent if they are a family member or one that you have legal rights over such as a guardianship. Age may also be a factor. Some of the other forms cannot be used if you are older than 65.
Filling out your tax returns can be a major headache and confusing each year. But you don’t have to let that be the case. Make sure that you read all information and booklets provided by the IRS and have all documents needed to complete these financial queries. There are usually free tax clinics held in every city and there are phone numbers provided by those that need questions answered. Your best bet is not to wait until the last minute. No longer will April 15th be a hated day but a joyful one as you’ll have your 1040A form completed to the IRS while everyone else is in a panic.