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The Curious Bag
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The 1040 is a lesser used and more complicated tax form, but may save you more money. However, you generally have to place in the highest income bracket to see any benefits. In addition, people often confuse this with other similarly numbered forms.
Identification
The Internal Revenue Service uses the 1040 form for individual tax returns, according to the IRS.
Types
There are three types of 1040 forms: 1040EZ, 1040A and the regular 1040, according to Bank Rate. The IRS will not require you to fill any particular form, but does send forms to people based on their previous tax year filing status.
Features
Bank Rate recommends that taxpayers file the regular 1040 if they earn over $100,000 (individual or jointly), are self-employed, plan to use itemization or recently sold land.
Benefits
While more complicated than the 1040A and 1040EZ, the 1040 offers much more space to claim tax credits and deductions, reducing the amount of your taxable income, reports Bank Rate.
Expert Insight
The IRS issues a tax preparation publication each year to help taxpayers determine which form they should file. It is strongly recommended that you read over this if you hold any doubts about which form to use.
Source:
Internal Revenue Service: Form 1040
Bank Rate: Which tax return form should you use?
Resource:
Internal Revenue Service: Federal Income Tax Preparation Publication
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