A recently published Maxmoneyzone.org article by tax preparation planner Frank Ellis covers the three 2016, 2017 IRS 1040 tax forms taxpayers can use. The first is 1040EZ, which is the simplest but doesn’t allow one to claim many of the available credits and deductions. There was a change this year, he notes. The IRS doubled the income threshold so more taxpayers could file with this form.
To file with 1040EZ, there are a few conditions, which Ellis outlines in the article. These include being limited to filing only as married filing jointly or as single. A taxpayer must also be under the age of 65 and have no dependents. The author lists the interest income and individual or combined income thresholds. Although it eliminates many credits and deductions, the one-page form does enable one to claim the Earned Income Tax Credit (EITC).
The next form discussed is 1040A. Income caps have also been increased for this form, and there are no restrictions on filing status, the author states. In addition to the EITC , taxpayers can claim the Child Tax Credit , Additional Child Tax Credit, and other credits related to education, dependent care, elderly/disabled care, and retirement savings credits on the form. Ellis also mentions other provisions for using the form, and explains how above-the-line deductions are claimed. He identifies what a few of these are as well.
For those with an income exceeding $100,000, Form 1040 is the option. The author says it can be used to itemize deductions, and to claim complex investments. Taxpayers can report various types of income. The long form has room to claim an even wider range of credits and deductions and there are over a dozen above-the-line deductions, Ellis says.
In the article, the author refers readers to IRS Publication 17 if they are still uncertain about which form to use. To learn more about the three versions of Form 1040, go to http://maxmoneyzone.org/1040-tax-form/
About Frank Ellis
Frank Ellis is a Traverse City Tax Preparation Planner and published author. He has written tax and finance related articles for eight years and has published over 900 articles on leading financial websites.
Maximum Money Zone
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