What are the Fundamental Differences Between IRS Forms 1040 and 1040EZ?

The IRS provides the taxpayers four easy options for filing their individual tax returns – Form 1040, Form 1040A, Form 1040ES and Form 1040EZ. The last is designed for the easiest and simplest tax situation while the first one is created for a more complex tax situation.

Here is a brief discussion that would help you understand the difference between Form 1040EZ and Form 1040. Continue reading What are the Fundamental Differences Between IRS Forms 1040 and 1040EZ?

Top 3 Less Known Federal Income Tax Facts

Federal income tax is the key source of revenue generation for the federal government. Income tax is a type of federal tax that Americans pay. Direct tax and indirect tax, aka excise tax, are two types of federal tax. Tax taken out directly from the workers’ paycheck is mandatory direct tax that falls into three categories Medicare, Social Security and federal income tax. On the other hand, the government charges indirect taxes, which are not mandatory, on some products or services bought like tobacco, alcohol, real estate, gasoline, cellphone, toll or sales tax.

Here are 3 less known facts about federal income tax. Continue reading Top 3 Less Known Federal Income Tax Facts

Tax Preparation Advice For The Americans – The Heavy Cost Of Not Filing On Time

25th December and 15th April happen to be the 2 most memorable dates on the calendar of America. While the first marks the most joyful season of celebration and gift giving, Christmas, the second date is when the income tax returns have to be filed. The first one is eagerly anticipated and the second one is a day of stress, fear and anger among many people. In spite of the fact that 3 out of 4 filers obtain a refund, none likes this time of income tax. Nevertheless, there are definitely ways in which you can make the experience less hectic and simpler. Continue reading Tax Preparation Advice For The Americans – The Heavy Cost Of Not Filing On Time

Student Loans Will Affect Your Income Taxes – Some Ways You Should Know of

Anxiety during time of taxes is pretty common and millennials feel it much more than the others. It is true that millennials belong to that age group who remain extremely worried about their tax filing process, as per a survey poll conducted by Harris Poll. Moreover, student loan debt can be even more confusing as you will be rather alarmed to know how many people in the US don’t even consider such loans to be relevant for their tax return. Continue reading Student Loans Will Affect Your Income Taxes – Some Ways You Should Know of