Understanding Tax Returns

Taxpayers in the United States are required by law to file different tax returns. These tax returns are normally
received by the Internal Revenue Service.

Common Tax Returns Forms

The type of tax returns to be filed by the taxpayers depends on the following factors:

If the taxpayer intends to claim their dependants on the return as well as their residential status. If the taxpayer is a US resident or a non-resident or an alien.

If the taxpayer is required by IRS to have their US tax returns filed. In this case, the taxpayer should be able
to correctly lay a claim on their incomes, deductions thereof as well as any credit.

When you click here at LocusTax.com, you will get the following forms:

Form 1040

This form is used by the individual United States taxpayers when filing for their federal tax return. Also called long form. The taxpayers are given an opportunity to reduce their tax liability by claiming several tax credits as well as expenses. The taxpayer can also amend their incomes by clearly itemizing their deductions.

For a taxpayer to file form 1040, they must meet the following criteria:

· They earn taxable income of more than $100,000 in a fiscal year

· They are in payment position as far as employment taxes are concerned

· They are supposed to list deductions, amend income and have a claim on the tax credits

· They have income arising from these sources: income from self-employment, farming income, income from
business etc.

Form 1040A

It is used by the taxpayers who do not want to file form 1040 which is considered to be very long. It is very
short and is for any taxpayer regardless of the filing status and age. Individuals are limited on the tax credits that can be claimed. Secondly, the taxpayer is not allowed to list the deductions.

Form 1040EZ

Used by those who file returns either individually or jointly and have no dependents. Easier to file since it is more simplified than forms 1040 and 1040A.

For a taxpayer to use form 1040EZ, the following conditions must be met:

· The taxpayer is not claiming anything on his dependants

· The taxpayer is only claiming credits from income

· The taxpayer has income from these sources: income from unemployment, salaries, tips, wages, etc.

· The taxpayer and his spouse are below 65 years, and they have been filing their returns jointly.

When you click here at LocusTax.com, you will be able to learn more about other forms such as 1040NR – EZ and
1040NR, W4 and W2. At LocusTax.com, you will be taken through various methods of filing tax returns. You may choose to use the traditional mailing method or hire a professional such us to handle the process on your behalf. Alternatively, the Internal Revenue Service has come up with an online portal where taxpayers can file their returns.

Finally, when visiting our site, you will never an opportunity to learn about other issues relate to federal taxes.

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