Can You Use A 'Short' Tax Form?

If you are just sitting down to work on your taxes, chances are you have lots of questions. One question might be "which form do I use?"

For example, some taxpayers are able to use the shorter 1040EZ, or 1040A forms rather than the longer, more complicated standard Form1040. The job of filing your taxes will be much easier if you can use one of the shorter forms.

According to the IRS, you can use the 1040EZ if:

• Your filing status is single or married, filing jointly
• You were under age 65 and not blind at the end of 2010
• You do not claim any dependents
• Your taxable income is less than $100,000
• Your income is only from wages, salaries, unemployment compensation, Alaska Permanent Fund dividends, taxable scholarship and fellowship grants, and taxable interest of $1,500 or less.
• You did not receive any advance Earned Income Credit payments
• You did not claim any adjustment to income, such as a deduction for IRA contribution or student loan interest
• You do not claim any credits such as the earned income tax credit or the making work pay credit
• You do not owe any household employment taxes on wages you paid to a household employee
• You are not claiming the additional standard deduction

If you don't qualify for the 1040EZ, perhaps you can use the 1040A. To qualify, your income must be limited to wages, salaries, tips, IRA distributions, pensions and annui- ties, taxable social security and railroad retirement benefits, taxable scholarship and fellowship grants, interest, ordinary dividends (including Alaska Permanent Fund dividends), capital gain distributions, and unemployment compensation.

Other requirements include:

• Your taxable income is less than $100,000
• Your deductions are limited to IRA contributions and student loan interest
• You do not itemize
• Your taxes are from the tax table, alternative minimum tax, advance earned income credit, recapture of education credit, Form 8615, or Qualified Dividend and Capital Gain Tax Worksheet
• Your tax credits are limited to child care, making work pay, earned income credit, education credits, additional child tax credit, elderly or disable tax credit, the child tax credit

If you are doing your taxes yourself, using a 1040EZ or 1040A will save time. If you are paying someone to prepare your taxes, using these short forms will probably save money.