Archive for December, 2008

On Tax Form 1040

December 25th, 2008 -- Posted in 1040 tax forms | 1 Comment »

Those who earn a stable or adjustable income every year must file for income tax returns to the Internal State Revenue by signing and submitting the Tax Form 1040.  This form enables you to calculate your income tax return, report your annual income, and avail of any deductions and tax credits.  Though a lot of people still seek 1040 form help, the internet has made things a lot easier.  The official website of the IRS has a digital copy of the tax forms in PDF format so all you have to do is visit the website and download the files to your computer.  For those who find this method too much of a hassle or who have trouble looking for the IRS website can always call the IRS customer service and request them to send a copy of the tax forms instead.
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Interesting enough, the tax form 1040 has been divided into two in order to shorten the time spent in filing, calculating, and submitting to the IRS.  These two forms are known as 1040-EZ and 1040A.  Both are still meant to be submitting when filing for tax returns but are different in terms of the income being presented by the individual.  If his or her financial status meets the requirements and falls under the eligibility standards of either forms, then he or she can download a copy of either and submit it as his or her report.  It would be best to read through the instructions of each form before answering and submitting to the IRS.

What are the Kinds of 1040 forms?

December 24th, 2008 -- Posted in 1040 form Assistance | No Comments »

There are actually three types of Form 1040s that you can use during the yearly tax-filing season: Form 1040, Form 1040A, or Form 1040EZ. All these can be used to file individual income tax returns. The difference lies in how simple or complex they are in terms of details needed.

Form 1040 is filed by individual taxpayers to report their income tax liability. Using this form, a person can claim many credits and deductions. Individuals who use this often have many income sources too, aside from the wages. This form often comes with a lot of attachments to strengthen the claims.

Form 1040A is referred to as the short form because it is shorter than the lengthy, two-paged Form 1040.  This form is intended for single people or married couples with eligible kids. There are lesser number of claims and exemptions so this is more straightforward than the 1040. Yes, there is lesser number of attachments, too.

Form 1040EZ is also referred to as the easy form since it is the easiest among all three. It is also called Income Tax Return for Single and Joint Filers with No Dependents. What are usually reported through this form are the wages and other source of income like interests.

You have to choose properly which form is appropriate for your financial situation. The simpler the form you use, the lesser chance of committing any mistakes that can cost you money or delays. However, if you have so many sources of income and you have claims for more deductions and exemptions, you should use the standard Form 1040, which is the most comprehensive of the three, but the most grueling to accomplish.

Tips when Filing for Income Tax Returns

December 24th, 2008 -- Posted in 1040 form Assistance | 1 Comment »

Every year the Internal Revenue State issues Tax Form 1040 for people to file their tax returns.  Here, they are able to report their annual income, avail of privileges such as tax credits and tax deductions, and calculate their tax returns.  There have been changes and improvisations with the Tax Form 1040 which a lot of people surprisingly have little idea of.  This unawareness has caused a lot of honest taxpayers to delay their submission of tax forms, so if you want to avoid this possible scenario, here are some 1040 form help tips that you can look into:
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1.  The IRS is in charge of issuing tax forms to citizens all over the country, so if there are any problems or inquiries regarding changes and updates with the form, you can call their offices and clarify with them.
2.  Technology has made life a lot easier, even filing for income tax return, so if you want to procure a copy of the 1040 tax forms you may do so by visiting the official website of the Internal State Revenue and download a free PDF copy of the Form 1040.
3.  The Tax Form 1040 has been divided into two: the 1040-EZ and the 1040A.  These are two forms that are shorter than the 1040 form and can be accomplished under a shorter period of time, making things easier for a lot of people.  It would be a good idea to read through the instructions and guidelines of each forma and see if you qualify to submit any of the two forms.

Should You File your Taxes electronically or not?

December 23rd, 2008 -- Posted in 1040 form Assistance | No Comments »

Back when there were no computers or Internet yet, people relied on paper and efficient filing to complete the taxation process. These days, with the advent of high-tech computers and the Internet, people are more inclined to use technology for convenience. But, should you opt for filing your tax returns electronically?

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Filing your tax return using the actual forms and mailing them to the Internal Revenue Service (IRS) is easy. It is cheap and convenient, too. It would take the IRS some time to process you tax returns though, because they will have to key in your data to their system first before anything else. Yes, the paper submission will only cost you postage, but it will take some time before you can get your refunds.

If you use the IRS site to e-file your tax returns, you help eliminate the data entry on the side of IRS and that makes things much faster to process. That means you can get your tax refunds earlier than if you submit the paper. Thing is, to do this, you will need a computer, Internet, and that software program to file your tax returns. This could be added cost on your part.

You can choose either paper or technology for filing. On top of that, you will have to choose too, if you will do it yourself or if you will hire somebody to do it for you. It will depend on how much you trust yourself to do the task and if you mind or not, the extra costs.

Tips in Handling Tax Form 1040

December 23rd, 2008 -- Posted in 1040 form Assistance | No Comments »

If you are a citizen earning an annual income, then you are required to submit Tax Form 1040 to the Internal Revenue State and the Department of Revenue of the state to which you permanently reside in.  This tax form enables you to report your annual income, interest income, avail of credits and tax deductions, as well as calculate your annual tax returns.  It is important that you file your tax returns on time to avoid any problems with the IRS, which can be very difficult to mend once you have delayed or violated their rules.  For 1040 form help, here are some tips that may be of use to you:
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1.  Tax Form 1040 has two sub-sections, 1040-EZ and 1040A, which are shorter and won’t have to take up to much time to submit.  You can avail of any of the two forms if you are eligible and have all the requirements needed by the IRS.  You can call the IRS customer service if you have any questions or clarifications regarding these two forms.
2.  If you want to get a copy of the tax form 1040 or any of the two sub-forms, you can do so by visiting the official website of the IRS and download a PDF version of the tax forms to your own computer.  That way, you will have enough time to read through the 1040 Form help instructions and familiarize yourself with the requirements and procedures when filing for the tax forms.
3.  If this is too much of a hassle for you, you can always call the customer service of the IRS and request them to send a copy of the forms to your email account.

Tips in Doing your Form 1040

December 22nd, 2008 -- Posted in 1040 tax forms | No Comments »

Some people choose to use a professional to help with the filing of their income tax returns. Some others use the software applications that allow electronic filing of taxes. The more traditional ones prefer to accomplish the preparation of their tax returns on their own using the actual forms. For these people, doing it helps them learn a lot in the process.

Every taxpayer’s situation is unique so, there are different ways to really completely fill up the Form 1040. For those who want to be sure and do not trust themselves in doing a great job at filing, they hire professional tax people.

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Here are some tips:

107  For any additional information on the forms or schedules, check the Internal Revenue Service (IRS) site or call their toll-free line for live telephone assistance.
108  There are Taxpayer Assistance Centers that can also help with any concerns about tax filing. Check the IRS website for the exact locations of these centers.
109  Employ the services of tax professional and experts if you are not sure about your skills in doing your taxes.
110  Learn to differentiate wages and income.
111  Strive for accuracy. Providing false data or giving inadequate details can put some red flags on your tax returns, which may trigger an audit by the IRS.
112  Never ever sign a blank tax return form and just leave everything with the tax person. Sign the document after the tax professional has completed everything you hired him for. This is after both of you have worked together in completing the details and making sure they are accurate.

Tax Return and Form 1040

December 22nd, 2008 -- Posted in 1040 tax forms | No Comments »

Everyone has to file for tax returns to the Internal Revenue State and the Department of Revenue to which state the person permanently resides in.  The tax form 1040 is what people use to report their annual income, calculate their tax returns, and to claim privileges such as deductions and credits.  The form is divided into two, the 1040-EZ and the 1040A tax forms, which can be downloaded off the internet from the IRS official website.  These forms are shorter than the 1040 form but are distinct from one another in terms of eligibility and requirements.  For the 1040-EZ tax form, those who are eligible must abide by these conditions:

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1.  Total income under US $100,000
2.  Interest income under US $1,500
3.  Income sources are wages, interest, Alaska Permanent Fund dividends, and unemployment compensation
4.  You and your spouse are under the age of 65
5.  No adjustments to income
6.  Claiming only standard deduction
For tax form 1040A:
1.  Income sources are from wages, internet dividends, capital gain distributions, taxable grants and scholarships, pensions, annuities, and IRA distributions
2.  Claiming of income adjustments such as classroom expenses, IRA contribution deductions, and student loan interests, and college tuition fees.
3.  Claiming standard deduction
4.  Taxable income is US $100,000 or less
5.  Claiming tax credits such as child tax credit, Hope and Lifetime Learning education credits, earned income credit, child and dependent care expenses, etc.

For more information and 1040 form help, you can visit the official website of the Internal Revenue State.

Who Needs Form 1040?

December 21st, 2008 -- Posted in 1040 tax forms | No Comments »

All US citizens and resident aliens regardless of where they live file Form 1040. Others who do not have to file for returns should still file this form to a refund of any income tax withheld. Others need to file Form 1040 if they are qualified for any credit like:
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107  Earned income credit
108  Additional child tax credit
109  Health coverage tax credit
110  Refundable credit

Form 1040 is the right form to file if the taxpayer’s income is big, if he has a complicated investment portfolio, or if he has a lot of income sources to report. The longest form among three, Form 1040 is to be filed if you want more criteria to fill in order to get more deductions or tax options.

The taxpayer needs Form 1040 if:

111  His taxable income is $100,000 above
112  There are itemized deductions
113  Based on Form W-2, Box 12, there are uncollected tax on tips or life insurance
114  Based on Form W-2, Box 12, there is code Z
115  He received $20 up in terms of tips in any one month and failed to report to the employer
116  He owes excise tax on stock compensation from an expatriated company or corporation

Should you need help in filing your tax returns or should you feel confused about which form to fill up, you can choose to employ the services of accountants or go to the IRS website to use the free e-filing services being offered. It will be best to read up about the many forms in order to file the taxes correctly.

What Form 1040 is made of

December 20th, 2008 -- Posted in Filing 1040 forms | No Comments »

The Internal Revenue Service (IRS) Form 1040 has the following sections:

107   Label

This section contains the taxpayer’s full name, as well as the spouse’s, if married. The taxpayer will also have to indicate his full, accurate mailing address and Social Security Number (SSN).

108  Filing Status

This is the section where the taxpayer will indicate his social status at the time of the tax filing – single, married filing jointly, married filing separately, head of household, and qualified widow/widower.

109  Exemptions

This lists your personal exemptions, your spouse’s, as well as your dependents’. Make sure that you check first if you are qualified for the exemptions before you list the individuals down in your tax return.
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110  Income

All income sources should be reported. There are certain incomes that require additional forms – so make sure you know which is which. In this section, the taxpayer will have to indicate taxable interest, capital gains, retirement allowances, and all such types of income sources.

111  Tax and Credits

This is located at the back page of Form 1040. This is the section where the taxpayer will deduct the standard or itemized deduction and exemptions in order to compute for the taxable income. Knowing the taxable income will let the person know his tax liability.

112  Payments

This is the section where the withheld income tax is indicated, as well as the earned income credit and additional child tax – which are all refundable credits.

113  Refund and Amount you Owe

This section reflects the refund and balance due after subtraction the total taxes from the total payments.

114  Signature

The taxpayer’s signature is required for this legal document. This certifies that the data filed is accurate and correct.

When Filing for Form 1040

December 20th, 2008 -- Posted in 1040 form Assistance | No Comments »

Tax forms are very important for every citizen of this country, which is why they have to be filed and submitted every year to the Internal Revenue State and the Department of Revenue according to the state that you belong to or live in permanently.  For calculating tax returns, annual income, and checking if one can avail of deductions and credits, you will have to use Tax Form 1040.  If you are having trouble filing for tax returns and are unaware of the changes implemented, here are 1040 form help tips to look into:

1.  The 1040 tax form is divided into two: 1040-EZ and the 1040A forms.  These two forms simplify the process of filing for tax returns and are eligible for people who earn a certain annual income every year.  Check if you are eligible for any of the two forms and read through the instructions so that you will not get confused in the end.
The IRS provides these tax forms for free, so if you are in need of a copy you can visit their official website and download a digital copy from their databases.
If downloading from their website is too much of a hassle, you can always call the customer service and ask for Tax Form 1040 or any of the sub-forms.  You can request that the forms be sent to your email account and from there you can download them easily to your computer.
Make sure that you read the instructions and changes before answering the tax forms.

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