Which Tax 1040 Form is Best for You?

Which Tax Form is Best for You?

This tax filing season, get things off to a good start. Make it easy on yourself and let the software you use to e-file select the right tax form for you. Filing electronically is the easiest way to file a complete and accurate return. The tax software asks questions at each step and minimizes errors. E-file also helps you get the tax credits and deductions that you are entitled to claim. Please see a qualified professional tax preparer.

Here are some tips to help you choose the right forms:

You can generally use Form 1040EZ if:

• Your taxable income is below $100,000;
• Your filing status is single or married filing jointly;
• You don’t claim dependents; and
• Your interest income is $1,500 or less.

Note: You can’t use Form 1040EZ to claim the Premium Tax Credit via the Health Marketplace.  Nor can you use this form if you received advance payments of the premium tax credit in 2015.

Form 1040A may be best for you if:

• Your taxable income is below $100,000;
• You have capital gain distributions;
• You claim certain tax credits; and
• You claim adjustments to income for IRA contributions and student loan interest.

You must use the Form 1040 if:

• Your taxable income is $100,000 or more;
• You claim itemized deductions;
• You report self-employment income; or
• You report income from sale of a property.

Good Luck with the 2016 tax filing season.