Taxpayers who have a taxable income of $100,000 or less and opt for a standard deduction instead of an itemized deduction qualify for the 1040A income tax form, according to TurboTax. The 1040A tax form excludes many of the details found on a 1040 form, but includes more complexities when compared to the 1040EZ tax form.Continue Reading
The 1040A tax form requires a taxpayer to list his exemptions and his filing status, such as single or married filing jointly, notes TurboTax. Different tax brackets determine income tax according to the taxpayer's filing status. As of 2016, filing status doesn't alter a taxpayer's exemption amount or the amount for his dependants. Having multiple exemptions benefits taxpayers looking to lower their overall tax liabilities.
Examples of income permitted on the 1040A tax form include tips, wages, salaries, capital gains, IRA, dividend/interest income and annuity distributions, according to TurboTax. Those who have additional types of income, including business income, have to complete a standard 1040 tax form.
The 1040 tax form permits taxpayers to lower their tax bills by claiming tax credits, notes TurboTax. Dependent and child expenses, education taxes, and credit for the elderly and disabled are all considered tax credits. Tax withholding and payments also lower the amount of taxes owed at the time of filing.Learn more about Income Tax