If you are an adult American citizen, like me, then you have most likely used a tax form or two by now to report income and tax deductions. The 1040A tax form can only be used if you meet certain requirements of the IRS. It’s what you commonly hear of as the “short form.”
The requirements for using form 1040A include adhering to the stipulations that say you cannot own a business, and you cannot make more than one hundred thousand dollars in taxable income. Also, you cannot use the 1040A tax form if you plan on itemizing your tax deductions. Itemizing your deductions can often lead to getting more money back, so before you choose the 1040A tax form, be sure that itemizing would not benefit your own personal tax situation.
In the ever-complicated world of taxes, the 1040A stands to be one of the most straightforward methods of reporting taxes, though it can be slightly more complex than its cousin 1040EZ. The main difference between the two forms is that if you wanted to report and deduct your IRA contributions this year, you’d need the 1040A and not the EZ.
Once you reach a point in your life where things like claiming dependents and credits are starting to have a real effect, then you’re probably ready to use the 1040A. Since it’s so streamlined, it also allows the IRS to process it a lot faster than if they were dealing with anything else. Here’s a look at what else you can use the 1040A tax form for:
- Student loan interest
- College tuition and fees
- Classroom expenses
- The Child Tax Credit
- Additional Child Tax Credit
- Hope and Lifetime Learning Tax Credits
- Earned Income Tax Credit
- Child and dependent care expenses
- Credit for the elderly and disabled
- Credit for retirement savings contributions
If you have any of those tax issues to attend to, AND you want to get your tax refund as quickly as possible, then consider using TurboTax to file your taxes this year. With this online program, you can skip the physical paperwork that increases the risk of entering incorrect information. In addition to that, they offer their biggest refund guaranteed policy, which is legitimate. Check out the website today for a free tax return estimate.