If you plan to file your tax return yourself (on paper) you’ll want to use the simplest form for which you qualify. The rationale behind this is simple- the simpler the form, the less likely you’ll be to make errors. As we’ve noted in the past, tax returns that contain errors can not only delay the processing of your return, they could cost you money (especially if you miss deductions that you were eligible to take advantage of.
According to the IRS, the simplest form is the 1040EZ. A second type of form, the 1040A covers several additional items not addressed by the EZ. Lastly, the IRS notes that Form 1040 should be used when itemizing deductions and reporting more complex investments and other income. Below are a few general guidelines on which form to use, per the IRS website:
1040EZ
Single or Married Filing Joint
Under age 65
No dependents
Interest income is below $400
Income or combined incomes below $50,000
1040A
Income or combined incomes below $50,000
Capital gain distributions, but no other capital gains or losses
Only IRA or student loan adjustments to your income
You do NOT itemize deductions
1040
Income or combined incomes over $50,000
Itemized Deductions
Self-employment income
Income from sale of property
If you cannot use Form 1040EZ or Form 1040A, you probably need a Form 1040.
You can use the 1040 to report all types of income, deductions, and credits. You
may have received a Form 1040A or 1040EZ in the mail because of the return
you filed last year. If your situation has changed this year, it may be to your
advantage to file a Form 1040 instead. For example, you may pay less tax by
filing a Form 1040 because you have enough deductions to itemize this year.
Remember- choosing the right form can not only help ensure you get a larger tax return, it can also help ensure you don’t make accidental mistakes.
Do you need help filing your 2022 taxes and you’re concerned about completing the return yourself? We can help. The experts at Hughes, Snell & Co., PA have years of experience in helping people just like you navigate situations just like this. For more information on how we can help you file your 2022 return, or to schedule a time to meet with one of our licensed tax professionals, call our office today to get started.
