An individual tax return is a tax return filed by an individual person rather than a business entity. An individual tax return is used to determine a person’s personal income tax liability. Broadly, there are three individual tax return forms: the 1040, the 1040A, and the 1040EZ. The appropriate individual tax return form depends on an individual’s circumstances. The 1040 individual tax return form is the longest, allowing for itemized deductions, income from sale of property, and income over $100,000, but it is also the most complicated. The 1040A individual tax return form allows for capital gains distributions but a minimal number of adjustments. The 1040EZ is the simplest and shortest individual tax return form and allows for interest income less than $1,500 but disallows deductions for dependents as well as most other adjustments. |
