Tax season is a flurry of forms and documents. With a bit of research, however, you can find out which forms you will need. When it comes to reporting taxes, you do have a few options including the 1040, 1040A and 1040EZ. Here is a bit more information about the 1040 specifically:
What is the 1040?: The 1040 is usually due by April 16. It is extensive compared to other tax forms and is often called the “long form.” Because the 1040 is extensive, it is also safer to file because it will help ensure that you do not accidentally miss something crucial. Some criteria for the 1040 include:
- An income that is equal to or exceeds the amount of one hundred thousand dollars
- A self-employed income that is equal to or exceeds four hundred dollars
- Selling property, mutual bonds, or stocks
- Owing excise tax on stock compensation.
If you are uncertain, you can always consult a tax expert. Consulting an expert is always a wise idea rather than just going ahead in a confused manner. You just can’t take chances in any case. So, make sure you consult an expert who have years of experience and go ahead on his advice so as to do things in a proper and rightful manner.
Submitting the 1040: Before you submit the 1040, you may need to complete a few other forms. If you are running a business, you will need to obtain an EIN number, or Employer Identification Number, by submitting form SS-4 before you file. This number functions as a Tax ID for your business. If you are filling under other non-individual circumstances, such as filling for an estate, you will need to obtain a Tax ID number for estate tax purposes. The easiest and fastest way to submit the 1040 Form is online. You will need to file for a Tax ID first, and wait for the IRS to assign said Tax ID before filling out the 1040. This means that you should start in January and submit your 1040 form several days before April16th- though give yourself even more time if you are planning to mail the form.
Whatever your tax filling needs, starting early will help you avoid the stress of deadlines and the penalty of fees. Giving a start well before time keeps you tension free and you can do things in the rightful manner. People who leave things for the last moment invite trouble for themselves and struggle later on. So, start well before and give yourself time so that you can prepare and complete things in the perfect manner.