According to Internal Revenue Service (IRS), more than 80% of all individual returns for the 2011 tax year were filed electronically. Many taxpayers choose this method because it is the quickest way to get a refund and have the funds deposited in your account which 75% of people request. Taxpayers have until Monday, April 15 to get their tax returns submitted electronically or by mail. Any tax owe to the IRS is also due at this time. If you are among the 20% of taxpayers who continue to file your taxes by mail, you will need to decide which IRS forms you will need to use for your 2012 individual tax return. This may be even more confusing because the IRS discontinued mailing paper tax packages in 2011. Here are some basic guidelines to consider when pondering which of the three IRS forms 1040EZ, 1040A or 1040–you need to prepare your taxes.
This one-page form is the easiest to file individual tax returns. To use Form 1040EZ, the taxpayer must meet some basic conditions, which include:
- Choose a filing status is Single or Married Filing Jointly
- Have a taxable income for single or joint filers that is below $100,000
- Cannot claim any dependents
- You and your spouse, if married, are under age 65 and not blind
- Interest income of $1500 or less
Like the 1040EZ form, taxpayers must meet certain qualifications in order to use this form. You must have an income of $100,000 or less and claim the standard deduction. You cannot itemize deductions on form 1040A.
Taxpayers can also use the Form 1040A under the following conditions:
- You receive capital gain distributions
- You can claim certain tax credits
- You claim adjustments to your income for Individual Retirement Account contributions
- You can also use this form if you intend to adjust your income for student loan interest.
This form is also called the U.S. Individual income tax return or the “long form.” The 1040EZ and 1040 A are shorter versions of this form. The two page form may require taxpayers to fill out other sections or IRS forms called “schedules.”
For example, a taxpayer who needs to report business profit or loss for a business will need to fill out Schedule C and submit it with Form 1040.This form works for taxpayers who need to leave port under the following conditions:
- Have a taxable income of $100,000 or more
- Intend to claim itemized deductions
- Report income from sale of property
- Report self-employment income
Taxpayers who need IRS forms and assistance can visit http://www.irs.gov where Forms, Schedules, Publications, instructions and worksheets are available 24/7. The IRS also provides free tax calculators and live assistance to answer questions for individuals about completing their tax returns.