Which Tax Form Should You File?

Completing your income tax return requires you to make one important decision almost from the start. Which tax form should you file? Depending upon your personal situation, you have the option of filing Form 1040EZ, Form 1040A, and Form 1040. Each form has its benefits; the trick is choosing the form that will require you to do the least work and still leave you with the right tax bill.

To help you get started towards choosing the appropriate tax form for you and your situation I have compiled a general summary of each form and the characteristics of its users. You may use this summary, but remember to consult a tax professional if you’re still unsure about selecting the right form.

Form 1040EZ

This form is the simplest and easiest to use of all the income tax return forms. It is typically used by single adults (or couples who are married and filing jointly) who have little or no interest income and whose wages are reported on Form W-2. Taxpayers with children cannot use this form. In addition, taxpayers who wish to make deductions from their income (besides the standard deduction) cannot use this form. Finally, self-employed individuals will find that they will have to select a different form, as well. Form 1040EZ users can take advantage of the Earned Income credit. Other restrictions apply, so be sure to look over the front page of the form’s instruction booklet to make sure it fits your situation.

Form 1040A

Many more taxpayers make use of this income tax form. It allows taxpayers with slightly more complicated returns to avoid the work required by Form 1040 and still take advantage of many different tax deductions and credits. Form 1040 filers can claim credits for having children, paying education expenses, and even saving for their retirement.

Form 1040

Finally, this form for income tax return filers allows them to benefit from every tax credit and deduction they are eligible for. Taxpayers who chose to itemize their deductions must use this form. This group of people tends to include the self-employed, homeowners, and people with household employees.

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