Some useful information for taxpayers

Several taxpayers search for relief to file their tax returns. It had been announced that the federal government will provide security this year. Many new programs will be introduced which will accredit, examine and monitor all the work of the taxpayers.

Now, the tax return preparers would have to pass a minimum of tests to prove their reliability and dependability. This will confirm whether they are capable of preparing the tax returns precisely.

IRS will provide funding to three non-profits that help the residents of South Bronx with their returns: the Food Bank for NYC/Food for Survival, Inc., the NYC Financial Network Action Consortium, and SEEDCO.

The money will support VITA grants through which volunteers provide free income tax preparation aid to low-Income, elderly, disabled and limited-English speaking people across New York.

The people found “in low incomes” and “from minority neighborhoods” need the tax benefits. The taxpayers who earned $ 49,000 or less during the year 2009 are eligible for the aid.

Tax Form 1040:

The standard form 1040 consists of few pages, but taxpayers need to fill some extra sections called “SCHEDULES”. Form 1040 comes with 12 optional Schedules. You won’t need all the schedules; you may need a few of them.

Whether you need Form 1040 or 1040A, you must find that out first. Standard deductions would mostly Form 1040.

Tax Form 1040A:

This type of simpler form has four different schedules:

  • Schedule 1: Interest and Ordinary Dividends
  • Schedule 2: Child and Dependent Care Expenses
  • Schedule 3: Credit for the Elderly or the Disabled
  • Schedule EIC: Earned Income Credit Qualifying Child Information

If you need to claim anything which is not mentioned in the above list, you should use Form 1040. A simple rule to find whether you need Form 1040A is that your taxable income has to be below $100,000.

Tax Form 1040EZ:

This is the simplest type of form. If your taxable income is below $100,000, you are filing single or married filing jointly, you (and spouse if applicable) are under 65 and not blind, you are not claiming any dependents, and your interest income is $1,500 or less, you can use this form.

June 29 2011 01:31 pm | Help Filling Tax Forms and How to file Taxes

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