Form 1040A is one of the forms that can be used when filing federal taxes in the US. This form is shorter than the original 1040 form; however, it is more complex than the 1040EZ form. All taxpayers can use form 1040, yet there are restrictions as to which taxpayers can use Form 1040A.
For example, you have to have a taxable income of less than $100,000; you have to take the standard deduction instead of itemizing your deductions.
Filing Status & Exemptions
When preparing this form, you have to list your exemptions and select a filing status before you start reporting your income.… Read the rest
The brand-new Form 1040 has simplified the form and moved many of the original lines to separate schedules. The philosophy behind it is to make filing easier for most Americans, who tend to have extremely simplified tax affairs.
Most taxpayers never have to use anything other than the new Form 1040. But for those who do need the schedules, we’re going to go through the six new schedules and what they do.
Schedule 1 – Additional Taxes and Adjustments to Income
If you need to report certain types of income or any adjustments, you’ll use this form.… Read the rest
Homeowners are usually well informed about the home-related tax deductions that they can make at filing time. However, when purchasing a home, other costs can quickly accumulate. For buyers who can’t come up with a 20% down payment on the purchase price, they will have the added cost of private mortgage insurance (PMI).
The PMI is a policy that is taken out by the homebuyer to protect the lender against possible default on the mortgage loan.
PMI is Tax-Deductible
This income tax deduction was developed as an element of the Tax Relief and Health Care Act of 2006 and was initially added to private mortgage insurance (PMI) plans issued in 2007.… Read the rest