Many people would frown at the thought of accomplishing their taxes for the year. It would be important to note that the taxes one pays change depending on the changes that has happened to his life during the taxable year. Marrying, having a baby, opening a business, making investments, or retiring make a direct impact on how an individual is taxed.
Some people opt to employ the services of an accountant while others attempt a DIY. Whatever the choice is, it is still best to understand how taxes work and how to file them correctly.
Individuals are required to file their annual income tax returns to the Internal Revenue Service or IRS. The 1040 form is that form that should be filed by April 15 of every year. This form documents the financial income status of the individual for the year in question and ascertains whether there are taxes due or there are tax refunds to wait for.
The 1040 form is considered as the long form because there are shorter versions like the 1040EZ, which is simpler and less comprehensive. The 1040 form is usually composed of two pages where the taxpayer is required to fill out sections called schedules.
Any individual income taxpayer in the United States can use the form 1040 to file his personal income tax returns. Here are the variations:
Form 1040A – or short form, which can be filled up by people with not-so complicated tax situations (no capital gain or loss, not itemized deductions, etc)
Form 1040EZ – or easy form, which is the simplified, six-section US Tax Return form
December 14 2008 08:46 pm | 1040 form Assistance