How to Know When IRS Form 1040 is Right For Your Tax Situation
In terms of filing your taxes, you often have several options when it comes to choosing a form that is going to work for you. While there is Form 1040A and Form 1040EZ for those with less complicated tax situation who want a shorter form to fill out, IRS Form 1040 is the tax form that can fit any taxpayer’s situation due to amount of complexity that it allows for. When using this form you have far fewer restrictions than with the other forms and that is why many people choose this form, but there are other benefits, as well. For instance, if you wish to claim more than the standard deduction or get credits other than the Earned Income Credit, then you won’t be able to use the 1040EZ. For those who earn more than $100,000 per year in income, even the 1040A will not work. Still, even people who might technically fit within the guidelines of the shorter tax forms will often choose the 1040 because it allows them to itemize far more deductions and actually save a great deal of money when they go to pay their taxes. For this reason alone, the form is often preferred over the easier and less complex alternatives.
Of course, unless you are a tax professional yourself you may want to get some expert advice on which form is best for you, but IRS form 1040 is definitely the closest you can get to a one size fits all solution. Any taxpayer who wants to be able to itemize more deductions, take advantage of more credits and generally detail their income and expenditures with a higher level of detail in the hopes of paying less in taxes should definitely consider the standard 1040 form due to the flexibility that it allows. In order to take full advantage of the 1040 you will need a Schedule A form to itemize all of the expenditures you wish to deduct and these include a very broad range of expenses that most people have a tendency to overlook.
Everything from taxes on real estate to medical and dental expenses to losses from theft or causalities can be itemized using a Schedule A form. By itemizing all of these eligible expenses, taxpayers can reduce what they pay and as a result, generally get a much larger refund check or direct deposit at the end of the tax year. That’s why for many Americans, 1040 is worth the extra effort.