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.
December 24 2008 05:22 am | 1040 form Assistance