Updates to 2024 Federal Taxes
IRS has updated tax brackets for 2024. See how this affects your first paycheck this year!
A great question this week comes from one of my readers. Which Form 1040 am I supposed to use? As a professional tax preparer, I always recommend you let a professional handle the complicated task of determining your tax liability. However, there are people who choose to go it alone with Turbo Tax or another of the myriad of self-help tax prep solutions. But which form do you need to file? How do you know the software is picking the correct one?
A great question this week comes from one of my readers. Which Form 1040 am I supposed to use? As a professional tax preparer, I always recommend you let a professional handle the complicated task of determining your tax liability. However, there are people who choose to go it alone with Turbo Tax or another of the myriad of self-help tax prep solutions. But which form do you need to file? How do you know the software is picking the correct one?
It's obvious when you look at the 1040, 1040EZ and 1040A that two of them are much simpler to complete. The 1040 is very complex and is meant to be flexible enough to handle all personal tax situations. From a recent IRS Tax Tip, here is the answer you are looking for. Here are some general rules to consider when deciding which paper tax form to file. Use the 1040EZ if:
Use the 1040A if:
If you cannot use the 1040EZ or the 1040A, you'll probably need to file using the 1040. Among the reasons you must use the 1040 are:
This year, the IRS stopped mailing paper books to taxpayers in an effort to save some money. It's even more important that tax payers pay attention to which form meets their needs now that they have to make the choice themselves. On a side note, make sure you adjust your W-4 if you are getting a large allowance. PaycheckCity has a great tool for making changes to your w-4 here. Next week, I'll discuss the logic behind the Form W-4. If you complete it correctly, your refund will shrink and give you access to your own money throughout the year.
IRS has updated tax brackets for 2024. See how this affects your first paycheck this year!
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