Choosing Which US Individual Tax Form to File

Posted by Sanket Shah | International Tax | Friday 1 February 2013 7:52 pm

Most US Persons prefer to e-file these days and the tax software automatically chooses the best form for your particular situation. However, taxpayers who choose to file a paper tax return, here are some tips that will help choose the best tax form for their situation.

You can generally use the 1040EZ if:

Your taxable income is below $100,000;
Your filing status is single or married filing jointly;
You are not claiming any dependents;
Your income is only from wages, salaries, tips, unemployment compensation, Alaska Permanent Fund dividends, taxable scholarship and fellowship grants, and taxable interest of $1,500 or less.
You do not claim any adjustments to in-come, such as a deduction for IRA contributions or student loan interest.
You do not claim any credits other than the earned income credit.

If you can’t use Form 1040EZ, you may qualify to use the 1040A if:

Your taxable income is below $100,000;
Your income is only from:

Wages, salaries, and tips,
Ordinary dividends (including Alaska Permanent Fund dividends),
Capital gain distributions,
IRA distributions,
Pensions and annuities,
Unemployment compensation,
Taxable social security and railroad retirement benefits, and
Taxable scholarship and fellowship grants.

If you receive a capital gain distribution that includes unrecaptured section 1250 gain, section 1202 gain, or collectibles (28%) gain, you cannot use Form 1040A. You must use Form 1040.

You claim certain tax credits;
Your adjustments to income are for only the following items:
Educator expenses.
IRA deduction.
Student loan interest deduction.
Tuition and fees.

If you cannot use the 1040EZ or the 1040A, you’ll probably need to file using the 1040.

Copyright @ 2011 NS Global.