standard deduction rates
Many tax payers are overwhelmed when they see the complex form 1040, but feel that they are using this complex shape, making them the maximum number of credits claim on their income taxes.
That is not true! The fact is that the average taxpayer is entitled to an abbreviated form 1040-file – the 1040A, can they claim many of the major credit they are entitled to, without all the headaches of trying to figure out the 1040 long form.
Are you entitled on the 1040A (Short) submitting it?
You are entitled to the 1040A (Short) Form file if the criteria that the IRS has set up. As a general Rule, it is probably in the best interest of a taxpayer for the "short" Form 1040A-file if they meet the following five conditions are met are:
Condition 1: All your income is derived from one or more of the following:
* Wages,
* Interest and dividends,
* Capital gain distributions
* Taxable grants and scholarships,
* Pensions, annuities and IRA distributions
* Unemployment benefit
* Social Security and railroad retirement benefits, and / or
* Alaska Permanent Fund dividends.
Condition 2: You are interested in the use of the following adjustments to the income **:
* Classroom Expenses
* Deduction for IRA contributions
* Student loan interest
* College tuition and fees
Condition 3: You are only the use of the standard deduction – you can not itemize your deductions on a 1040A!
Condition 4: Enter your (combined) taxable income (s) is / are $ 100,000 or less.
Condition 5: You only claim the following tax credits **:
* Child Tax Credit
* Additional child tax credit
* Hope and Lifetime Learning Education Credits
* Earned income credit
* Child and dependent care expenses
* Credit for the elderly and disabled people
* Credit for retirement savings contributions
If you meet the above criteria, you may be entitled to the file with 1040A (Short) form – ask your tax professional prepare the warrants.
Remember – the benefits of using Form 1040A is that the form of faster to prepare than the longer 1040, to process more quickly and also to the IRS as long as the average taxpayer, the benefits of the most common forms of income to take tax credits. This means even greater profits, less tax preparation and headaches for you.
** If conditions 2 and 5 not to Your case is applicable, you may be entitled to a more abbreviated form – the 1040ez file. Consult your tax professional preparation.
Gabriel Johnson is a Tax Accountant and Paralegal operating out of Satellite Beach, FL as Space Coast Income Tax.
He has worked as a Tax Preparer since 2003, and has operated his own firm since graduating with his Degree in Income Tax Preparation in 2006. He is an IRS registered Electronic Return Originator and Certifying Acceptance Agent.
Johnson began researching the subject of Tax Fraud and Frivolous Claims in 2006, after attending a conference held by a popular “Tax Protest” leader.
He is the author of “Milk For the Biscuit” – a collection of short fiction; and is currently working on his second book, a history of the Income Tax Protest movement in the United States.
For More Information:
Http://www.spacecoastincometax.com
http://www.beachsideincometax.com
Email G.Johnson@SpaceCoastIncomeTax.com
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