The time is just about right to file for income taxes. The deadline is April 15th, and you should do what you can to avoid missing the deadline. Otherwise, you end up having pay penalties, which is totally unnecessary. When filing for individual income tax, there are 3 types of forms that you can use. Be sure to pick the right form.
1) 1040 EZ
This is perhaps the most commonly used form. You can use this form if:
– Your income is less than $100k
– You are filing as a single, or you are filing jointly as a married couple
– Both you and your spouse are under the age of 65, and both of you are not blind.
– There are no dependents in your claim.
– You earn less than $1,500 in interest income.
2) 1040 A
– Your income is less than $100k
– You have capital gains to declare.
– You are claiming certain tax credits.
– You claim deductions for special items (e.g. student loan interest, tuition fees, etc)
If you don’t fall into either one of the categories above, you probably need to fill in the 1040 form.
3) 1040
– Taxable income is above $100k
– There is income from sale of property.
– There are tax deductions.
– You have self employed income to declare.
Choosing the right form to use is important because if you make mistakes when filing for your tax returns, you will be asked to file again. Of course, if you file early enough, you may still be able to meet the April 15th deadline. But if there is not enough time, you may have to meet the October 15th deadline. For the second deadline, penalties apply. So you want to avoid being in this situation.
One way to file quickly and get the job done well is to efile. When you efile, the information you submit is sent directly to the IRS for processing. The process can take between 7 to 10 days. If you qualify for income tax refunds, the funds can be deposited directly into your bank account. The entire time frame, from the point you submit your tax returns, to the time you get the cash in your account, is only about 14 days. This speed is impossible to achieve if you choose the manual filing route.
On an authorized efile website (look out for the IRS logo), there will be a list of supported forms. Of course, all the commonly used forms are supported – 1040EZ, 1040A, 1040, etc. To efile, just create an account with your SSN number. Once an account is created, you can use back the same account to efile again.
Login with your password and user name (your SSN number) and the efiling process will begin. Simply follow the instructions to complete the filing.