Learn when to use the 1040a tax form
Are you unsure which tax form you should use? If so, continue reading this article to see if form 1040a would be the ideal tax form for you.
Today, I am going to share the important information that you need to know regarding the 1040A form. This is one of the three most common tax forms available for taxpayers to file their taxes .
It is longer than the EZ version of the form, but it also is not as detailed as the regular 1040 form. However, just like the EZ form, not everyone is going to be eligible to use the 1040A form.
Who can use the 1040A form?
In order to use the form you have to make less than $100,000 and this income has to have come from employment wages, capital gain distributions, unemployment compensation, and other similar income sources. Those who are self-employed are not able to use this form even if they have made less than $100,000 during the year.
If you do qualify to use this form, there are some things to keep in mind. For example, there are limitations
for tax credits and deductions when filing with this form. For example, if you could save money by itemizing your deductions, you will not be able to do so with this form, so you would be paying more money than you needed too.
Furthermore, deductions are limited too. The number of deductions that the form allows you to take various each year yet you can rest assured that they are going to be less than the ones that can be reported on the standard 1040 form.
You can also expect your tax credits to be limited. However, it is a personal choice regarding whether you want to claim all of the tax credits that you are eligible for. Therefore, you can use this form if you are eligible for tax credits. Just remember that you will not be able to claim all of them if you file the form.
If you are not sure which form you need to use for your taxes, consider filing your taxes with H&R Block this year. They will ask you easy questions to determine which forms and filing statuses you qualify for, which results in you receiving the largest tax refund ever.