Which Tax Form Is the Simplest Form to Use?
The concept of a simple tax form has changed. Understand the factors that determine if your tax situation is straightforward when using the standard Form 1040.
The search for the simplest tax form now leads to a single destination: Form 1040. The IRS discontinued shorter forms like the 1040-EZ and 1040-A after the 2017 tax year, so every individual now uses the redesigned Form 1040. This form operates on a “building block” principle.
This structure means people with straightforward financial lives will only interact with the main Form 1040. Those with more complicated finances, such as business owners or investors, attach numbered schedules to report that information.
Qualifying for a Simple Tax Filing
A simple tax filing is defined by having common types of income and forgoing certain complex deductions. If your income comes exclusively from wages, salaries, and tips on a Form W-2, you are on the right track for a simple return. This category also includes unemployment compensation from Form 1099-G and modest amounts of interest and dividend income. If your taxable interest or ordinary dividends are under $1,500, you do not need to file a Schedule B, keeping your return simple.
Taxpayers with other sources of revenue generally do not qualify for a simple filing. This includes self-employment income detailed on a Schedule C, or income from the sale of stocks or property, which requires a Schedule D. Similarly, rental income reported on Schedule E moves a return into a more complex category. The absence of these additional income-reporting schedules is what defines a simple return.
How you handle deductions is another major factor. To maintain a simple filing, you must take the standard deduction instead of itemizing. For the 2024 tax year, the standard deduction is $14,600 for single filers, $29,200 for those married filing jointly, and $21,900 for heads of household. Choosing to itemize deductions on Schedule A for things like mortgage interest or significant charitable gifts makes a return more complex. Claiming common tax credits, such as the Child Tax Credit, does not necessarily disqualify you from having a simple return.
Information and Documents Needed
Gathering all necessary documents beforehand will ensure an accurate process. You will need the full names, dates of birth, and Social Security Numbers (SSNs) for yourself, your spouse, and any dependents you plan to claim. An Individual Taxpayer Identification Number (ITIN) is used if an SSN is not available.
You must also collect all statements related to your income. For most people, the primary document is Form W-2 from an employer. You will also need Form 1099-G for unemployment benefits, Form 1099-INT for interest earned, and Form 1099-DIV for dividends.
Finally, have your bank account information ready. If you anticipate a refund, you can get it fastest by providing the IRS with your bank’s routing number and account number for direct deposit. This information can also be used to authorize a direct debit payment if you owe tax.
How to File Your Simple Return
The most efficient filing method for simple returns is IRS Free File. This program is a partnership between the IRS and tax software companies that provides free guided tax preparation to eligible individuals. To qualify for a provider’s free software, your Adjusted Gross Income (AGI) must be at or below a specific threshold, which is $84,000 for the 2024 tax year. You can access the program from the IRS website to choose a participating provider.
If your income exceeds the Free File threshold or you prefer not to use software, you can file a paper return by mail. Download a fillable PDF of Form 1040 from the IRS website. You must sign and date the form before mailing it. The IRS website provides mailing addresses, which vary depending on your state and whether you are including a payment.