| It's time to file taxes and you now have to figure out | | | | more complicated form like a 1040A or 1040 tax form. |
| which are the right forms to fill out. Are you getting a | | | | Retirement savings and contributions credit is another |
| refund or having to pay more? What you don't want is | | | | reason you need to file a 1040A versus a 1040EZ and |
| to miss out on possible tax credits which can make | | | | other deductions like tax credits for state and local real |
| your tax refund larger or make you owe less. Use the | | | | estate taxes or new vehicles, requires you to use one |
| easiest tax form possible to get your taxes filed, as a | | | | of these forms versus 1040EZ. |
| general rule of thumb. If you have no tax credits and | | | | If you can itemize deductions on a Schedule A and the |
| are entitled to a refund or might owe money, there are | | | | deductions exceed $5,700 for a single person or |
| a few options to consider when it comes to tax forms. | | | | $11,400 for married couples, filing a 1040 tax return |
| Some offer more advantages than others. | | | | form is the most beneficial way to go. You will also |
| One of those is the easiest form to complete. The | | | | need to file this form to take advantage of other tax |
| 1040EZ is for those that have no credits and no | | | | credits and deductions, as well. The most common |
| deductions other than the standard deduction. In order | | | | reason for filing a 1040 tax return form and itemizing |
| to take advantage of the head of household filing | | | | deductions on Schedule A is when mortgage interest |
| status, you must file on 1040A or 1040 tax forms, | | | | exceeds the standard deduction amounts. |
| however. The 1040EZ is specifically for those that | | | | For those that are first-time home buyers, the new tax |
| have a W-2 or 1099 and 1098 forms and no other | | | | credit is $8,000 or $4,000 for married couples filing |
| deductions. You can complete this form on your own, | | | | separately. The American opportunity credit replaces |
| if you follow the instructions and it only takes a few | | | | the Hope education credit and the tax credit has been |
| minutes if you have received your W-2 or 1099 or 98 | | | | increased to $2,500 for those that have college |
| form. The easiest way to remember the 1040EZ is it is | | | | students or might be taking college courses. Both of |
| an "EZ" and short form. | | | | these situations require a 1040 itemized filing. |
| If you are filing head of household or have a more | | | | If you have purchased energy efficient heating and |
| complicated tax situation, you will need to file a 1040A | | | | cooling systems or added extra insulation to your |
| form which is easier than filing a 1040 tax return form, | | | | home, you can get a tax credit. Purchasing an electric |
| also referred to as a "long form". You can get a more | | | | vehicle allows you a tax credit and both of these tax |
| beneficial tax rate deduction by filing head of | | | | credits necessitate the filing of a 1040 long tax return |
| household, even though you have to file on a slightly | | | | form. |