1040.com Review – Which Option is Right for Filers on 1040.com?
Filing taxes is not one of the highlights of most peoples’ years, but that does not mean it has to be more difficult and tiresome than it needs to be. Instead of waiting to file, and instead of worrying about how to file, making the choice to file taxes without the help of an accountant this year. Filing tax returns online with the help of high quality software is easy and stress free. The software that is found on 1040.com will make it easy to receive all the help that is needed whether filing basic taxes, or a more complex return.
On the 1040.com website filers will be able to choose between three different options – the Simple, Basic, and the Deluxe. The Simple version, as the name suggests, is for those who have the simplest of returns. The Basic version is for those who have a bit more complexity in their return. The Deluxe version is for those who have complicated taxes. Filers will need to make sure they are choosing the right one for their needs. Choosing the correct program is simple.
Who Can Use the Simple Option?
This option will allow filers to complete the simplest tax returns. Those who plan to file with the Simple option will need to make sure that all of the following statements are true.
- They are filing single or you are married filing jointly
- They do not claim any dependents
- They have no adjustments to your gross income
- Their taxable income is less than $100,000
- They (along with their spouse if filing jointly) are under 65 and not blind
- They did not receive any advanced EIC (earned income credits), and they do not claim any other credits other than EIC
- They are not a debtor in Chapter 11 bankruptcy (filed after October 16 2005)
- They do not owe household employment taxes paid to household employees
- They are not claiming the additional standard deduction for net disaster losses or qualified motor vehicle taxes
- Their income is from – wages, salaries, tips, unemployment, taxable scholarships and fellowship grants, Alaska Permanent Fund dividends, no more than $1500 in interest income
When filers find the above statements are true, they will be able to use the Simple software option. They will find it is free to file their federal return.
Who Should Use the Basic Option?
Those who believe that they are not going to qualify for the Simple option may want to check to see if they will be able to use the Basic option instead. The cost of the Basic option is only $19.95. Filers, in order to qualify for the Basic package, must find all of the following will need to be true.
- Income comes from wages, salaries, tips, interest and ordinary dividends (including Alaska Permanent Fund dividends), capital gain distributions, pensions, IRAs, annuities, taxable scholarships and fellowship grants, unemployment, taxable Social Security and railroad retirement benefits
- Adjustments to the income can only come from IRA deductions, student loan interest deductions, tuition and fees deduction, and educator expenses
- Their taxable income needs to be less than $100,000
- They are going to itemize deductions
- They did not have the alternative minimum tax adjustment on stock
- The only other tax credits that they will be able to claim are child and dependent care, elderly or disabled, child tax, additional child tax, earned income credit, education, retirement savings contribution
Obviously this package provides more options when filing taxes. However, it may still not be the right choice for some tax situations. Filers with more complex tax returns will want to take advantage of the still affordable Deluxe option.
Is the Deluxe Option Right?
Tax filers who find that they are unable to qualify for the Simple or the Basic options will be able to utilize the Deluxe package option. With this option users are going to be able to report every type of taxes, deductions, credits, and income. Those who find any of the following applying to them will need to choose the Deluxe option. This package, although more detailed, will still only cost $39.95.
- They have income from self-employment, including farm income
- They received income in a partnership, as a beneficiary of an estate or trust, or as a shareholder in an S corporation
- They received dividends on insurance policies (if they are greater than the total of all net premiums paid)
- They received $20 or more in unreported tips in a single month
- Their taxable income is greater than $100,000
- They itemize their deductions
- They are in bankruptcy
- They owe household employment taxes
- They are claiming adoption credit or received adoption benefits from an employer
- They had a qualified HSA (healthcare savings account) funding distribution from IRA
- Net disaster loss from a federally declared disaster
- Eligible for first time homebuyer credit
- Eligible for health coverage tax credit
- Employer did not withhold Social Security and Medicare
What About the State Return?
Those who live in a state where they must pay a state tax will find they are going to need to file a state tax return in addition to their federal return. When using the software through 1040.com the information automatically transfers from the federal to the state forms. Filers will simply need to answer a few more questions regarding the state tax portion. The cost for the return is only $29.95. Those who spend time in more than one state throughout the year will even be able to add the additional states with ease.
Everything about 1040.com is easy. The site makes filing income taxes fast, easy, and stress free. Users will be able to receive their return in much less time. They will find that they do not have to guess which form to use so they can be sure they are completing everything correctly, and in accordance with the law.