According to federal laws governing taxation, any person, receiving an income in one form or the other, need to pay income taxes to the government annually. But, the job of preparing tax returns, the calculations and the many tax forms involved, constitute one of the harrowing experiences being an honest tax payer. To make matters worse, the complexity of calculations increases with the income. That is, more the income, more complex will be associated tax calculations and also the number of tax forms involved. This article focuses on the last of the facts mentioned, the tax forms, especially 1040ez, 1040a, and 1040.
The first step in the run-up to tax return submission is selecting the right form. The basic of the tax forms is the 1040 – also 1040ez and 1040a – which has to be appropriately filled by every person filing tax returns in any case. It is meant for all kinds of income, over $100,000 annually, and also for itemizing deductions when not opting for standard deductions. 1040ez, again a basic tax form, on the other hand is meant for people who are single or when married, jointly. The conditions governing the 1040ez form are, the tax payees must not have any dependents, not blind, age less than 65, and have an annual earned income (taxable) less than $100,000 with an earned interest not more than $1,500, and have non-itemized deductions. Finally, the form 1040a is for those who have an income less than $100,000 annually, but with itemized deductions.
The stickiest part with tax preparation in fact is the right selection of the tax forms. Boy! It can be really confusing. To make matters worse, most of the people, they start thinking about tax returns only in the 13th hour, all warnings and ads by the tax department not withstanding. Some even end up paying the fine for delayed tax returns. But, none of these last minute heroic acts is ever going to give any respite to the person as far as the ordeal waiting for them is concerned, if not compounding it further. Here, one simply cannot afford to go wrong in the selection of tax forms and filling it. An error anywhere – in the type of form (1040ez or 1040a or 1040) or the data incorporated – could lead to other complexities such as an unprecedented delay in tax refunds or even a fresh request to pay the income taxes from the tax department to clear the confusion.
Hence, considering such possibilities, it is advisable that if anyone is confused regarding the tax forms to use or with tax calculations, don’t hesitate to consult a tax specialist. They could help you with the tax calculations and the selection of the right form and documents (of course, they’ll take a pay for the service). On a general perspective, however, it is only advantageous to remain educated about taxation’s various dimensions and requirements. A professional could extend the much needed assistance, but it is always on a safer side for the individual himself/herself to be aware of the basic rules regarding taxation. Let’s not take everything for granted!
Another plus with acquiring enough knowledge about the different dimensions of tax preparation and the tax forms – 1040ez, 1040a, or 1040 – is that then he/she could easily and safely shift to tax preparation software like TurboTax that are easily available in the internet to complete the formalities. TurboTax software is accurate, easy and simple to use, and what all you need to do is to first download the tax preparation software on your PC, and then provide the figures the computer asks of you. However, it is very important that the right figures be provided to the Turbo Tax software always so that there are no mistakes that may arise in the 1040a, 1040ez, or 1040 forms, when all the calculations are finished.
One could get the tax forms – 1040ez, 1040a, or 1040 – from IRS or public library.
Make sure that you fill it out properly and include all the required documents before submitting it to the authorities. Ensure your signature on it and also the social security number without any errors. A misquoted SSN could cause lots of difficulties, both for the tax payer and the tax authorities.