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:
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.
December 22 2008 12:11 am | 1040 tax forms