The Easiest 2009 Tax Return - Who Can File Form 1040EZ?
When deciding on which 2009 individual income tax return to file there are three basic IRS tax forms that need to be considered.
The three basic IRS tax forms are (1) Form 1040EZ, (2) Form1040A or (3) Form1040.
This article will focus in on Form 1040 EZ, which is the shortest form and by far the least complex of all the forms.
The Form 1040EZ was designed to be very simple, and therefore is designed to exclude many typical adjustments to income.
Some of the common items of financial activities that would prevent you from using the Form 1040EZ are:
However, even if you can use Form 1040 EZ, it may be of greater benefit to you to consider itemizing your tax deductions by using Form 1040.
You would be able to benefit by itemizing if your itemized deductions exceed the standard deductions.
The standard deduction is $5,700 for most single people and $11,400 for most married people filing a joint return.
Further, if you paid state or local real estate taxes or purchased a new vehicle, you may qualify for an increased standard deduction only if you file form 1040A or Form 1040.
Also, if you can claim the head of household status, which generally results in lower tax than a single filer, then you would be better off using Form 1040A and Form 1040.
In the event you conclude that you do not have to file any of the three types of form 1040s mentioned above you may want to consider filing to get a refund of any federal income tax paid.
Also you should file if you're eligible for the earned income credit or making work pay credit.
The tax return is due April 15, 2010 if you file after that date you may have to pay interest and penalties.
However there other circumstances for individuals in the armed forces that would permit filing at a later date.
In summary, using a tax preparer who is either a Certified Public Accountant or an enrolled agent is a good choice, since those individuals are professionally trained and skilled to assist you in filing your tax return.
With current technology, it's easy to send your tax information in a secured manner to your tax preparer and save the time of traveling to the tax preparer's office or storefront.
Also, you should consider having your tax return filed electronically, "E-file".
The E-Filed tax return method is fast, secure, accurate and taxpayers electing direct deposit may be able to receive their refunds in as little as 10 days.
The three basic IRS tax forms are (1) Form 1040EZ, (2) Form1040A or (3) Form1040.
This article will focus in on Form 1040 EZ, which is the shortest form and by far the least complex of all the forms.
The Form 1040EZ was designed to be very simple, and therefore is designed to exclude many typical adjustments to income.
Some of the common items of financial activities that would prevent you from using the Form 1040EZ are:
- Sole proprietorships, home-based and small businesses that file a Schedule C.
- Capital gain transactions-for example the sale of stock and other property
- Alimony received or paid
- IRA deductions
- Alimony paid
- Taxable Social Security benefits.
- Your taxable income is less than $100,000.
- Your filing status is single or married filing jointly.
- You and your spouse are under age 65 and not blind
- You are not claiming any dependents.
- Your interest income is $1,500 or less.
- You do not claim any adjustments to income(as mentioned above)
- You only have wages, salaries, tips, taxable scholarship and fellowship grants, unemployment compensation, or qualified state program earnings.
- If you earned tips they must be reported in boxes 5 and 7 of Form W-2.
- You did not receive any advance earned income credit payments.
- You do not owe any household employment taxes on wages paid to employees that work in your household.
- You are not claiming the additional standard deduction for real estate taxes, net disaster losses or qualified motor vehicle taxes.
- You are not a debtor in a Chapter 11 bankruptcy case which was filed after October 16, 2005.
However, even if you can use Form 1040 EZ, it may be of greater benefit to you to consider itemizing your tax deductions by using Form 1040.
You would be able to benefit by itemizing if your itemized deductions exceed the standard deductions.
The standard deduction is $5,700 for most single people and $11,400 for most married people filing a joint return.
Further, if you paid state or local real estate taxes or purchased a new vehicle, you may qualify for an increased standard deduction only if you file form 1040A or Form 1040.
Also, if you can claim the head of household status, which generally results in lower tax than a single filer, then you would be better off using Form 1040A and Form 1040.
In the event you conclude that you do not have to file any of the three types of form 1040s mentioned above you may want to consider filing to get a refund of any federal income tax paid.
Also you should file if you're eligible for the earned income credit or making work pay credit.
The tax return is due April 15, 2010 if you file after that date you may have to pay interest and penalties.
However there other circumstances for individuals in the armed forces that would permit filing at a later date.
In summary, using a tax preparer who is either a Certified Public Accountant or an enrolled agent is a good choice, since those individuals are professionally trained and skilled to assist you in filing your tax return.
With current technology, it's easy to send your tax information in a secured manner to your tax preparer and save the time of traveling to the tax preparer's office or storefront.
Also, you should consider having your tax return filed electronically, "E-file".
The E-Filed tax return method is fast, secure, accurate and taxpayers electing direct deposit may be able to receive their refunds in as little as 10 days.
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