Monday, January 11, 2010

Tax Tip - Choose the Tax Form that Best Fits Your Needs

It seems like I have taxes on the brain!  LOL  I guess I do as I know I have 4 forms to file this year.  One is my Federal Income Tax, a State Income Tax, a Corporation, and an Estate Tax Return.  To keep with that theme, I decided to share the Tax Tip from the IRS on which tax form best suits your need.

To file your 2009 individual tax return, you’ll have to decide which form to use…unless you e-file. If you file electronically, the software automatically selects the simplest and best form for you. Whether you use e-file or prepare on paper, using the simplest form will help avoid costly errors or processing delays. And remember, if you file electronically, it speeds up the processing of your tax return and the delivery of your refund.
Here are things to consider when deciding which IRS form to file.
Use the 1040EZ if:
  • Your taxable income is below $100,000
  • Your filing status is Single or Married Filing Jointly
  • You and your spouse – if married -- are under age 65 and not blind
  • You are not claiming any dependents
  • Your interest income is$1,500 or less
  • You are not claiming the additional standard deduction for real estate taxes, taxes on the purchase of a new motor vehicle, or disaster losses
Use the 1040A if:
  • Your taxable income is below $100,000
  • You have capital gain distributions
  • You claim certain tax credits
  • You claim deductions for IRA contributions, student loan interest, educator expenses or higher education tuition and fees
If you cannot use the 1040EZ or the 1040A, you’ll probably need to file using the 1040. You must use the 1040 if:
  • Your taxable income is $100,000 or more
  • You claim itemized deductions
  • You are reporting self-employment income
  • You are reporting income from sale of property
All IRS forms, instructions and information about e-file can be found on

Christie Pegoda
SD Virtual Assistant
phone 501-205-4083
fax 888-243-0865

1 comment:

  1. thanks for the info and putting me on your blogroll! :)