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Tuesday
Feb072012

Tax Tip: Which Form Should You Use When Filing?

Ryan McVay/Photodisc/Thinkstock(NEW YORK) -- Once you have all your tax paperwork in front of you, the next step is figuring out which form to use when you file.

There's the full 1040 form, which anyone can use, but there's also the simpler 1040A and 1040EZ.  So which one is right for you? 

As Eric Smith from the IRS explains, "The 1040EZ targets primarily single individuals and married couples who don't have any kids and have a very simple income structure."

With the EZ form, you cannot itemize your deductions and your taxable income has to be less than $100,000.

If your situation is a little more complicated, the 1040A form might be a better fit.

"Some tax benefits that can be claimed that are not available on the EZ, such as the child care credit, child tax credit, the EITC -- earned income tax credit -- is available on the 1040A," Smith says.

However, if you're reporting any self-employment income, or money from the sale of a property, than longform 1040 is the choice for you.

Copyright 2012 ABC News Radio







ABC News Radio