Are you eligible to file the 1040A “short” form?
Are you eligible to file the 1040A “short” form? Many taxpayers are overwhelmed when they see the complex 1040 form but feel that they must use this complex form so that they can claim the maximum number of credits in their income taxes.
That’s not true! The fact of the matter is that the average taxpayer entity to submit the short 1040 Form – 1040A, which allows them to claim their eligible ordinary credits without all the hassle of trying to figure out the 1040 long form.
Are you eligible to file 1040A (short) form?
If you meet the criteria set by the IRS, you may be eligible to file Form 1040a (abbreviated). As a general rule, it would be in the best interest of the taxpayer to file a “short” form 1040A if they meet the following five conditions:
Condition 1: All your income came from one or more of the following:
* Wages,
* Interest and dividends,
* Distribution of capital gains,
* Taxable grants and scholarships,
* Pension, annuity, and IRA distribution,
* Unemployment Allowance,
* Social security and railway retirement benefits, and/or
* Alaska fixed fund dividend.
Condition 2: You interest in claiming the following adjustment of income **:
* Classroom costs
* Discount for IRA contributions
* Interest on student loan
* College tuition and fees
Condition 3: You are only claiming standard deduction – you cannot itemize your cuts at 1040A!
Condition 4: Your (combined) taxable income (s) is $ 100,000 or less.
Condition 5: You are only claiming the following tax credit **:
* Child tax credit
* Extra child tax credit
* Education credit for hope and lifelong learning
* Received income credit
* Child and dependent care costs
* Credit for the elderly and disabled
* Credit for retirement savings contributions
If you meet the criteria listed above, you may be eligible to file with Form 1040A (abbreviated) – ask your tax preparation professional about options.
Remember – the advantage of using Form 1040a is that the form is prepared faster than the long 1040, and even faster to process the IRS, although still allows the average taxpayer to take advantage of the most common forms of an income tax credit. That means big income and low tax preparation headaches for you.
** If conditions 2 and 5 do not apply to you, you may be eligible to file a shorter Form – 1040EZ. Consult your tax preparation professional.
Preparing your IRS tax form 1040
IRS Tax Form 1040 is used to file an income tax return for personal income. You can unmarrieds or married who are filing a joint return with your partner. Depending on your filing status (whether you are married or unmarried), your dependents and your annual income can be Form 1040EZ or 1040A.
You can get the form from your local post office, or your nearest IRS or state tax office, or download it from the IRS website.
Before you start filling out Form 1040 make sure you have W2, 1099MISC, W4, etc. Document W4 is “Employee Withholding Allowance Certificate”. By filling out this form, your employer can deduct tax from your monthly salary on your income and pay it to the IRS. W2 for wage and tax statements. It cannot download from the website as it cannot scan. You will need to get it from the IRS office or your employer. 1099 MISC use to report income from other sources if you are self-employed.
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