Picking the right form is step one in filing your taxes.
If you need some help filing a tax return, you are not alone. The whole process, admittedly, can be downright confusing. Which form do you use? What are the filing deadlines? What are some of the common issues you may face? This article will help answer some basic tax questions so you can file your return in a timely manner.
Pick the Correct Form
You have three choices of forms to file your tax return on. The full-length Form 1040 is available to all taxpayers; however, to file a 1040A or 1040EZ, which generally take less time to prepare than the 1040, you must satisfy all eligibility criteria. (Go to IRS.gov to learn the exact criteria.) The IRS only allows you to file one of the two shorter forms if your taxable income is less than $100,000. Regardless of what your annual gross earnings are, this means that after you claim all exemptions and deductions, you cannot have $100,000 or more of income that is subject to tax. Other requirements exist for each form, but most importantly, you should consider that if you file either form, you are precluded from itemizing your deductions.
Choose Whether to Itemize or Use the Standard Deduction
One of the fundamental issues you will face on your tax return is whether to claim the standard deduction or to itemize your expenses. Generally, you only want to itemize when the total of your deductible expenses -- you can see a full list of things you can deduct at www.irs.gov/taxtopics/tc500.html -- exceeds your standard deduction. In 2012 for example, a single filer can claim a $5,950 standard deduction, whereas a head of household filer receives $8,700 and a married couple filing jointly an $11,900 deduction. Therefore, your ability to itemize deductions directly relates to your filing status.
File by Deadline
It may seem obvious, but it's incredibly important that you file your tax return by the April 15 deadline to avoid penalties, especially if you owe the IRS money. The IRS uses the postmark date on the envelope when you mail the return, so if you don't e-file and you wait until the last minute, you want to make sure the post office puts the correct postmark date on your envelope. If you anticipate needing more time to file your return, you can obtain an automatic extension by filing Form 4868 on the original deadline or by making a tax payment with your credit card.
Fill Out the Forms In Their Entirety
Sometimes forgetting the small stuff can delay your filing or cause you to send the IRS an incomplete or inaccurate return. You should always ensure that you provide all of the personal information at the top of your 1040 form. For example, if you claim exemptions for dependents, the IRS requires you to report the Social Security numbers for each of them; otherwise, you may not be eligible to claim those exemptions. Furthermore, if you forget to sign your return, then the IRS treats it as incomplete and will likely notify you. If you are anticipating a refund, both issues can delay your receipt of it. To avoid missing something, double check your return before you send it.
