How to Choose the Right Tax Forms

Doing your taxes typically means working through a lot of different paperwork. However, you can avoid doing this work twice by making sure you have the right forms in front of you the first time around. There are different versions of Form 1040 that are used, depending on your personal financial situation, and some tax schedules and IRS publications are used more frequently than others.

While everyone will use some version of the Form 1040, you may need to use several different schedules or forms if you want to file for an extension, itemize deductions, report supplemental income and losses or claim special tax credits.

Before you choose your tax forms, you need to determine how you will file your taxes. If you are planning to file online via a tax preparation website or program, such as TurboTax, your forms will generally be selected for you during preparation.http://turbotax.intuit.com/personal-taxes/  On the other hand, if you plan to file your taxes on paper, you will need to obtain them yourself. You can download them from the Internet, request them from the IRS or pick them up at a local library during tax season.

Everyone must fill out a 1040, 1040EZ or 1040A. This is where you calculate and report your taxable income. The version of the 1040 you fill out will depend on a few different factors:

• 1040: This is the most commonly-used form. You must use this form if your taxable income is more than $100,000 or you plan on itemizing your deductions. You should also use this form if you have self-employment income.http://www.irs.gov/taxtopics/tc352.html  
• 1040EZ: Use the 1040EZ if you have no dependents, are under 65 and not blind, earned less than $100,000 last year and do not itemize your deductions.http://www.irs.gov/taxtopics/tc352.html 
• 1040A: Use the 1040A if your taxable income is less than $100,000 and you do not itemize deductions, but do have some adjustments such as a retirement contribution or Child Tax Credit.http://www.irs.gov/taxtopics/tc352.html 

Depending on your income and how you have acquired it, you may need to fill out one of the following forms. For a complete list of forms, visit the Forms and Publications page of the IRS website.http://www.irs.gov/formspubs/index.html?portlet=3 

• Schedule A: To claim Itemized Deductions, Mortgage Interest, etc.
• Schedule B: To report Taxable Interest or Dividends in Excess of $1,500
• Schedule C or C-EZ: To report Profit or Loss from a Business
• Schedule D: To report Capital Gains and Losses, Sales from Stock, etc.
• Schedule E: To report Supplemental Income and Losses
• Schedule SE: To calculate Self-Employment Tax
• Form 1040V: A Voucher for Submitting Payments by Mailhttp://www.irs.gov/formspubs/index.html?portlet=3
  

Remember that you have to file your state income tax return as well. To find the correct tax return forms for your state, visit your official state tax authority's website. The IRS maintains a guide to every state's important tax-related sites that you might find useful.http://www.irs.gov/businesses/small/article/0,,id=99021,00.html TurboTax also has aggregated links to every state's website.http://turbotax.intuit.com/support/iq/Where-do-I-/State-Tax-Web-Sites/GEN12028.html