Which Tax Return Form Is Right For You?

Tax return forms are about as complicated as forms get.  When you are filing your own taxes, it is a sure bet that you want the easiest possible form.  But don’t grab that EZ form just yet!  Take some time to learn which tax return form is actually best for your needs.  It just might surprise you that a little of your time filling out a longer form could pad your wallet by more than you realize.   

1040EZ Form

This form is the shortest and easiest form to file your taxes.  You may use the 1040EZ if:

• You are filing as single or a joint married return.  Filing as the head of a household or married but separate disqualifies you from using the 1040EZ.
• You were under the age of 65 for the entire tax year, including January 1^st of the next year.  When you are filing a married joint return, both spouses are required to meet this age restriction. 
• You were not legally blind anytime during the tax year.  If filing a married joint return, your spouse must also meet this requirement. 
• You have no dependents.
• You will not itemize any deductions.
• You have no paid student loan interest.
• You have no interest income above $1,500.
• Your income is below $100,000.  This income restriction is also for the combined income of a married couple filing jointly.

The 1040EZ form restricts the methods in which tax payers may reduce their tax liability.  If you are not itemizing deductions and meet the above criteria, then this form would adequately meet your needs.  

1040A Form

Taxpayers using the 1040A may file with any filing status.  This form makes it possible to claim some deductions that not possible with the 1040EZ.  These deductions are the retirement saving credits, child credit, earned income credit (EIC), and educational credits.  

You may use the 1040A if:

• Your income is below $100,000.  This income restriction is also for the combined income of a married couple filing jointly.
• You will not itemize any deductions. 
• Your only income adjustments come from interest paid on a student loan, jury duty paid to an employer, or a penalty on an early withdraw from retirement savings.  

1040 Form

The 1040 form is the best choice for taxpayers that have a larger income, itemize deductions, or that have complicated investments. 

There is typically additional paperwork required when filing with this form.  The reason is that there are more tax credits which may be taken advantage of only when using the 1040 form.  However, the additional paperwork necessary may be worth the additional savings for some taxpayers.    

You should file with this form if:

• Your income, or combined married income, exceeds $100,000.
• You itemize deduction, instead of taken the standard deduction.
• You report any self-employment income, even when it’s not your main income source.
• You profited from any sold property.

As with any tax questions or concerns, it is best to consult a qualified tax professional if you have any doubts about which tax form is right for you.