Selecting an appropriate Tax Return Form
Federal law states that a person, who has an earning from one or the other sources, is liable to pay income taxes to the government every year. But, what is most bothersome to an honest tax payer is the cumbersome task of preparing tax returns. This involves tedious calculations and the filling of several lengthy tax forms. The dilemma is that as you start earning more, your calculations and paper work get more complex. This means the more you earn, the more number of tax forms you may have to fill out. Some of the important facts related to the tax forms, particularly 1040ez, 1040a, and 1040 have been discussed in this article.
So, despite all these hassles, if you have decided to file your tax return, the first thing you need to do is select the right form. The most primary tax forms are the 1040, 1040ez and 1040a. A person needs to use these forms when they go to file their tax return. If your income exceeds $100,000 annually, you need to file tax returns by filling out these forms.
1040ez is a basic tax form for documenting deductions when you are not opting for standard deductions. 1040ez is also the most sought-after form for people who are single. So, who all can fill a 1040ez? The conditions are; that the tax payee must not have any dependents, he or she should not be blind and should be less than 65 years of age. The person filing with the 1040ez must have an annual taxable income less than $100,000 with an earned interest that does not exceed $1,500, and should have non-itemized deductions. For a person with an annual income less than $100,000 as well as a need to itemize deductions, the form 1040a is appropriate.
The inability to select appropriate forms for tax filing may at times result in delayed tax returns. The person may also be required to pay a penalty. A mistake in selecting the right type of form or entering the wrong data could lead to other types of complexities such as a delay in tax refunds. Sometimes the tax department even demands the taxpayer to pay the income taxes again to clear the confusion.
Keeping those harrowing complexities in mind, it is always advisable to seek the guidance of a tax specialist. A tax consultant is always more prepared to select and file your tax forms and efficiently. They could help you in file your tax returns with the required supported documents.
However, it is always beneficial to have some knowledge on various issues related to taxes and return filings. A professional consultant can guide you on complex issues; you should have awareness on the basic rules and regulations related to taxation.
When you have a fair idea of different dimensions of tax filings and the tax forms, you can easily maneuver tax preparation software like TurboTax. TurboTax is available on the internet and you can easily complete your tax return and other related formalities. TurboTax is simple to use and gives you a guaranteed result. At first, you need to download TurboTax to your PC, and then furnish the data that is asked from you. However, you should be very careful to enter the right figures into the TurboTax software in order to avoid any mistake that may arise while filling the forms 1040a, 1040ez, or 1040, when you are finished with your calculations.
1040ez, 1040a, or 1040 tax forms are available from the IRS or public library.
Once you get the form, you should be sure you have all the required documents you might need before submitting your return to the IRS. Make sure that you have signed the form wherever it required and have entered your social security number (SSN) correctly. If you enter a wrong SSN, it could be problematic for you and the tax authorities as well.