June 8, 2007, Newsletter Issue #68: Filing the Correct Tax Form

Tip of the Week

Which 2006 tax form you file with the IRS will depend upon how many forms of income, expenses, and tax credits you have. The least complicated form is the Form 1040EZ. The most complicated is the Form 1040.

Basically, you can file an IRS Form 1040EZ if you are single or married filing jointly. Also:

You income must only come from wages, interest and/or unemployment compensation. You can only have the earned income credit. No other tax credits are allowed.You can not have received any advanced earned income credit payments.No itemized deductions are allowed.You can only choose the standard deduction amount.Your total taxable income must be less than $100,000.Both you and your spouse must be under age 65 and not blind as of January 1, 2007. The Form 1040EZ is meant to be a simple income tax return.

Requirements for filing Form 1040A include:

You cannot be self-employed. Period.Your taxable income must be less than $100,000.You cannot have paid any alimony during 2006.You have no moving expenses.You cannot itemize any deductions.Your only deductions are student loan interest, an IRA deduction, educator expenses, and tuition and fees.You can file with any filing status (married, single, head of household, etc.) Form 1040 covers everything. All filing statuses, all income sources, all expenses, all deductions, all tax credits. In fact, any item you can think of as affecting your income tax return,will be reported on the Form 1040. Form 1040 also applies to you if

You itemize deductions.

Your taxable income is $100,000 or more.

For detailed information about which tax form you need to file, read IRS Publication 17.

About LifeTips

Now one of the top on-line publishers in the world, LifeTips offers tips to millions of monthly visitors. Our mission mission is to make your life smarter, better, faster and wiser. Expert writers earn dough for what they know. And exclusive sponsors in each niche topic help us make-it-all happen.

Not finding the advice and tips you need on this Taxes Tip Site? Request a Tip Now!


Guru Spotlight
Christina Chan