April 28, 2006, Newsletter Issue #13: Selecting the Correct Tax Form

Tip of the Week

When it comes time to file taxes for 2005, it all boils down to just three essential federal tax forms: the 1040EZ, the 1040A, and the 1040. The IRS recommends using the simplest form you qualify for to reduce the likelihood of errors that could result in you paying higher taxes or a delay when you file taxes. While each of the federal tax forms has its own criteria for use, the 1040EZ is usually appropriate for people who donít claim dependents and have taxable income below $100,000. The 1040A is used most often by people with dependents and more than $100,000 in taxable income. And the 1040 is suited to those with more than $100,000 in taxable income or anyone who wishes to itemize deductions rather than take the standard deduction.

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
George Sayour