The IRS Form 1040A is now explained in detail on the American Tax Service website, as tax specialist Frank Ellis walks readers through what can be reported on this quintessential tax form.
January 19, 2016 — Frank Ellis, a tax preparation planner and published author, has posted an article explaining IRS Form 1040A on the American Tax Service website. The information provides insight into the more complex form, compared to the 1040EZ form, just in time for the upcoming tax season. Ellis explains there are restrictions as to who can use 1040A, including taxable income.
The author then covers how to report income on the form. First, one has to list their exemptions and choose a filing status, which are related to tax brackets for calculating one’s income. Ellis compares exemptions to deductions, and details the information that people need to list on top of the form.
Income types that are recorded on the form are covered next. As 1040A limits the types of income that can be reported, it does allow one to include wages, salaries, tips, interest, pension, and other things. The original 1040 form must be used by businesses. Once income is reported, the article says, adjustments can be made in order to report AGI. Some of these are mentioned in the article.
The article also lists what’s on the second page of the form, where standard deductions and exemptions are subtracted. Taxpayers can then determine the amount of tax they owe. Tax credits can then be factored in once the total taxable income has been calculated.
There is also a section on how forms 1040A and 1040 differ, the main difference being Form 1040 allows deductions to be itemized. The author also makes a recommendation to file taxes with H&R Block so all the correct information can be entered automatically and one can get the largest refund possible. He also links to a free tax refund calculator.
See more at http://americantaxservice.org/the-irs-form-1040a-explained/.
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.
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