Which Form -- 1040EZ, 1040A or 1040?

This is archived information that pertains only to the 2004 Tax Year. If you
are looking for information for the current tax year, go to the Tax Prep Help Area.

If you are filing a federal income tax return on paper, use the simplest form you can, the IRS advises. The simpler the form, the less chance of an error that may cost you money or delay the processing of your return. The simplest is Form 1040EZ. Form 1040A covers several additional items not addressed by the EZ. Form 1040 should be used when itemizing deductions and reporting more complex investments and other income. Beginning in 2004, the income limit for using Forms 1040EZ and 1040A has increased to taxable income of less than $100,000, up from previous years´ limit of less than $50,000.

Here are some general guidelines to help you determine which form to use:

1040EZ

Taxable income below $100,000
Single or Married Filing Jointly
Under age 65
No dependents
Interest income of $1,500 or less

1040A

Taxable income below $100,000
Capital gain distributions, but no other capital gains or losses
Only tax credits for child, education, earned income, child and dependent care expenses, adoption, elderly and retirement savings contributions
Only deductions for IRA contributions, student loan interest, educator expenses or higher education tuition and fees
No itemized deductions

1040

Taxable income of $100,000 or more
Itemized deductions
Self-employment income
Income from sale of property

If you cannot use either a 1040EZ or 1040A, you probably need a regular 1040. You can use the 1040 to report all types of income, deductions, and credits. You may have been mailed a 1040A or 1040EZ tax package this year based on the return you filed last year. If your situation has changed this year, it may be to your advantage to file a 1040 instead. For example, you may pay less tax by filing a 1040 because you have enough deductions to itemize this year.

Remember, choosing the correct tax form could mean money in your pocket. Check your tax instructions carefully. Publication 17, Your Federal Income Tax, is a helpful guide to preparing your federal tax forms. Download it or order it by calling toll free 1-800-TAX-FORM (1-800-829-3676).