Yes, you may pay less tax filing Form 1040 because of the ability to claim itemized deductions, additional adjustments to income, an credits not available on Form 1040A or Form 1040EZ. You must use form 1040 if any of the following apply:
- Taxable income is $100,000 or more
- You will itemize deductions
- You have income that cannot be reported on Form 1040EZ or Form 1040A, including tax-exempt interest from private activity bonds issued after August 7, 1986
- You claim any credits or adjustments to gross income not allowed on Form 1040A.
- You have form W-2 that shows either of the following:
- Uncollected employee tax (social security and Medicare tax) on tips or group-term life insurance
- Income from Non-qualified deferred compensation plans (box 12 with a code Z)
- You received $20 or more in unreported tips in any 1 month
- You were a bona fide resident of Puerto Rico and excludes income from Puerto Rico sources.
- You owe excise tax on insider stock compensation from an expatriated corporation
- You have a qualified health savings account funding distribution from their IRA
- You are an employee and your employer did not withhold social security and Medicare tax
- It is necessary to file other forms with the return to report certain exclusions, taxes, or transactions
- You are a debtor in a bankruptcy case filed after October 16, 2005.
- You have a net disaster loss attributable to a federally declared disaster
- You must recapture the first-time homebuyer credit
- You received a refund or credit of certain taxes or net disaster loss claimed as part of your standard deduction
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