It is that wonderful time of year again " no, not Christmas, but rather tax time. Before you go and spend money on tax programs or a professional, think Form 1040A.
Many people avoid doing their taxes like the plague, and while we all realize that it is a "chore" avoiding it is not the answer. I've heard a ton of excuses ranging from I don't make enough money to file, to it is just too complicated and I dont have the time.
Now, while I truly understand not wanting to do your taxes, there is the potential for the average Joe or Jane to get sizeable cash refund. A couple hours of work and you just might get some of the money you've paid all year back in your pocket. As incentives go, getting money back from the government goes a long, long way.
For those that are afraid they are going to have to pay, listen up, the interest that is charged on what you owe on back taxes can be scary. There are arrangements you can make with the IRS regarding payment plans.
For the typical person, a nice simple form was created called the 1040A. It is much easier to complete then the 1040EZ and allows you to claim a few more deductions. This short form is two pages that covers usual types of income, deductions and credits. Are you eligible to use this form? Read below and chances are youll see that you are. A handy list of links has been included at the bottom of this article so you can grab the forms and get started right away.
You can use the 1040A if:
Your taxable income is less than $100,000 (subtract your total deduction from your total income).
You did not exercise incentive stock options.
Income comes from:
Capital gains,
Grants and/or scholarships,
Interest and dividends,
Pensions, annuities, IRA distributions,
Social Security benefits,
Unemployment,
Employment Wages
Deductions are standard:
Classroom expenses
Student loan interest
Tuition and fees
You are claiming the standard tax credits which are:
Retirement savings contributions
Elderly and disabled credit
Child and dependent care expenses
Earned income credit
Child tax credit
Additional child tax credit
Lifetime Learning and Hope education credits
Since youve read all the way thru this article, why not buckle down and just get it done. There may be a few schedules that you need to complete regarding your expenses " click below to grab all you need.
2008 Form 1040A Instructions (http://www.irs.gov/pub/irs-pdf/f1040a.pdf)
1040A Form (http://www.irs.gov/pub/irs-pdf/f1040a.pdf)
Schedule 1 - Interest and Ordinary Dividends (http://www.irs.gov/pub/irs-pdf/f1040as1.pdf)
Schedule 2 " Child and Dependent Care Expenses (http://www.irs.gov/pub/irs-pdf/f1040as2.pdf)
Instructions for Schedule 2 " (http://www.irs.gov/pub/irs-pdf/i1040as2.pdf)
Schedule 3 " Credit for Elderly and the Disabled (http://www.irs.gov/pub/irs-pdf/f1040as3.pdf)
Instructions for Schedule 3 (http://www.irs.gov/pub/irs-pdf/i1040as3.pdf)
Many people avoid doing their taxes like the plague, and while we all realize that it is a "chore" avoiding it is not the answer. I've heard a ton of excuses ranging from I don't make enough money to file, to it is just too complicated and I dont have the time.
Now, while I truly understand not wanting to do your taxes, there is the potential for the average Joe or Jane to get sizeable cash refund. A couple hours of work and you just might get some of the money you've paid all year back in your pocket. As incentives go, getting money back from the government goes a long, long way.
For those that are afraid they are going to have to pay, listen up, the interest that is charged on what you owe on back taxes can be scary. There are arrangements you can make with the IRS regarding payment plans.
For the typical person, a nice simple form was created called the 1040A. It is much easier to complete then the 1040EZ and allows you to claim a few more deductions. This short form is two pages that covers usual types of income, deductions and credits. Are you eligible to use this form? Read below and chances are youll see that you are. A handy list of links has been included at the bottom of this article so you can grab the forms and get started right away.
You can use the 1040A if:
Your taxable income is less than $100,000 (subtract your total deduction from your total income).
You did not exercise incentive stock options.
Income comes from:
Capital gains,
Grants and/or scholarships,
Interest and dividends,
Pensions, annuities, IRA distributions,
Social Security benefits,
Unemployment,
Employment Wages
Deductions are standard:
Classroom expenses
Student loan interest
Tuition and fees
You are claiming the standard tax credits which are:
Retirement savings contributions
Elderly and disabled credit
Child and dependent care expenses
Earned income credit
Child tax credit
Additional child tax credit
Lifetime Learning and Hope education credits
Since youve read all the way thru this article, why not buckle down and just get it done. There may be a few schedules that you need to complete regarding your expenses " click below to grab all you need.
2008 Form 1040A Instructions (http://www.irs.gov/pub/irs-pdf/f1040a.pdf)
1040A Form (http://www.irs.gov/pub/irs-pdf/f1040a.pdf)
Schedule 1 - Interest and Ordinary Dividends (http://www.irs.gov/pub/irs-pdf/f1040as1.pdf)
Schedule 2 " Child and Dependent Care Expenses (http://www.irs.gov/pub/irs-pdf/f1040as2.pdf)
Instructions for Schedule 2 " (http://www.irs.gov/pub/irs-pdf/i1040as2.pdf)
Schedule 3 " Credit for Elderly and the Disabled (http://www.irs.gov/pub/irs-pdf/f1040as3.pdf)
Instructions for Schedule 3 (http://www.irs.gov/pub/irs-pdf/i1040as3.pdf)
About the Author:
Visit Mel C. Jardan's site for additional information on taxes. If you need additional advice on such topics as sample legal letters to the IRS, IRS loopholes, etc., Visit Mels blog at Tax Help
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