Death and taxes, you can’t avoid them…it’s true, and at least with taxes we get something in return. What is that you might say? Well we get a government for one thing! As much as you might hate certain things about the government it’s childish to think we could get along with out it . We do live in a free country where citizens are allowed to pursue happiness, whatever form that takes. Usually that means we have a system whereby anyone no matter what family they come from, can go to school and work hard and make something. It’s not the medieval era anymore.
So we all pay our taxes and live in a country that’s not the worst in the world, maybe we can all agree on that. Try living somewhere else for a change and see how it compares. This isn’t really a bad place to live! And income taxes make a lot of it possible.
The 1040 Form:Why You’ve Heard of It
Most people use the IRS Form 1040 to pay their individual income taxes each year, which is why it may be familiar to you even if you’ve never done your own taxes before. There are actually a few different versions of the IRS form 1040: a short and simple one for people with simple financial situations. It’s called the 1040EZ There’s the 1040A, which allows a few more credits and deductions so it’s not as fast & simple as the EZ. Then there’s what they call the long form, the 1040 form. It’s got extra pages, schedules, worksheets, and more, so people with lots of complicated financial things can get all the tax credits & deductions they deserve.
Lots of People Fill Out Their Own Form 1040
This could also be why everyone seems to know what 1040 means. Many taxpayers do fill out and submit their own tax forms. Not everyone pays to have them done. It’s not really that difficult, especially with today’s tax prep software and step by step websites offering free online tax services.
The Goal Is To Get All Your Tax Credits & Deductions
Tax preparation professionals will scare you by saying only they can find the maximum amount of deductions and tax credits you have coming to you. But tax software asks you all the right questions, too, so you don’t miss out on deductions or credits. Just answer the questions correctly and you’ll get the same result and a professional would get.
The 1040 Form Looks Simple But Software is Even Simpler
You can take a look at an IRS form 1040 here on their website and see it’s not that complicated. But when you use tax software it’s even simpler because you’ll be looking at something like this instead of a form:
Nice and easy! Just answer a few questions about yourself and your income and copy some figures from some statements you got in the mail (W2,1099 etc) and you’re preparing your own taxes and saving at least $40 (what tax prep companies charge for filing the 1-page 1040 EZ form).