Are you planning to file your taxes yourself?   If you are single, an employee, and don’t own a home- then I agree, that’s a great thing to do.  Once any of these attributes change, then there a great deal of options available to you that will let you save money.    And, that’s where talented folks like our staff actually save you more money than you would pay us to determine the lowest taxes you ar legally required to pay.

But, if you are bound and determined to do them yourself, you need to know what forms are available and which one your should choose.

Let’s start with my first choice above- single, employee, and don’t own a home.  If you have no children, then you should be filing a 1040EZ- as long as you are not blind or over 65 years of age, earned interest less than $ 1500,  or make more than $100,000.  .  As you can tell from the name, it’s supposed to be an easy form to fill out.  It’s also illegal for tax professionals to file these forms for you (because they are considered so easy).  If you have dependents, a qualifying widow(er), married filing separately, or even head of household, this form is not for you.

Next up in complexity is Form 1040-A.    Your income still has to be less than $ 100K, but now you can have dividend, interest, capital gains, pensions, annuities, and taxable Social Security benefits. (But, you can’t be self-employed. )  Better yet, this form lets you claim child tax credits, education (tuition) credits, earned income credit (you have kids but don’t make enough money), and/or the credit for dependent care expenses.

If these don’t cover you still, then Form 1040 (and all of its attendant schedules and subforms) is the one for you.  With one exception- you have to be a citizen or resident alien.

Which brings up Form 1040NR.  This form is for non-resident aliens, who have earned money taxable under US law, or own a US business, or  made money that is exempt under a tax treaty.  (It may be exempt, but you still have to file.  The tax rates are the same as if you were a citizen, but the deductions available to you are much fewer in number (and lower in value).   The one exception is if you made less than $ 3650 performing personal services AND you don’t want or deserve a refund.  (OK, if you have an F, M, J. or Q visa, a non-resident alien student, AND have no taxable income, you don’t have to file a tax return.)

[NOTE:  I MAY REMOVE THIS PARAGRAPH- IT’S NOT CLEAR IF THE EZ FORM OF THE 1040-NR HAS BEEN PERMANENTLY RETIRED. ]You may even be able to file a 1040NR-EZ, if your income is less than $ 100K that comes from wages, state income tax refunds, and/or scholarship/fellowship grants.  But, the bargain for using this form is that there are NO deductions or credits available to you.  (That’s even less than afforded those who file the 1040NR.)

Then,there are a few really special cases.  If you were only self-employed (don’t own a house, either), made more than $ 400 (or $108.28 and were a church employee) and are a resident of the US or its tributaries, then you can file 1040SS, an even shorter and easier form than the 1040EZ, except for the fact that you will be paying income tax AND employment taxes.  (The dirty little secret of being self-employed is that you are the employee and the employer, which means you pay both the employee portion of social security/medicare taxes AND the employer portion!) If you live in Puerto Rico, you can file 1040(PR), which is the same form as the 1040SS, but it’s in Spanish.

And, then there’s the special form.  One you need to file if you made a mistake.  (What?  You thought the IRS would let you off with an error?)  This form, 1040X, is an amended tax return.  You cannot just file a new, corrected form like you did the first time, because you are only entitled to file ONCE a year- and the IRS will reject the duplicate.   If you owe money, you should expect to get a bill for interest- and probably penalties (unless you explain how this error occurred very well and very clearly on the 1040X, but, even then, don’t get your hopes up).   If the amended return shows you are due a refund, you will receive it- after about 90 days after it’s processed.

Tomorrow, I’ll cover the forms you need to file if you are a business, trust, or foundation.

Of course, if you want assistance, that is EXACTLY what the Adjuvancy provides for you.  We want to make sure you pay the lowest amount of taxes required by law.  Call us TODAY, since you have less than  45 days left before these documents must be filed.

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