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:
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.
December 21 2008 04:43 am | 1040 tax forms