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To file your 2010 individual tax return, you’ll have to decide which form to use…unless you e-file. This year, choosing which form to file will be even more important since the IRS will no longer be mailing paper tax packages.
Here are some general rules to consider when deciding which paper tax form to file.

Use the 1040EZ if:
   • Your taxable income is below $100,000
   • Your filing status is Single or Married Filing Jointly
   • You and your spouse – if married -- are under age 65 and not blind
   • You are not claiming any dependents
   • Your interest income is $1,500 or less

Use the 1040A if:
   • Your taxable income is below $100,000
   • You have capital gain distributions
   • You claim certain tax credits
   • You claim adjustments to income for IRA contributions and student loan

Use the 1040 if you cannot use the 1040EZ or the 1040A. Among the reasons you must use the 1040 are:
   • Your taxable income is $100,000 or more
   • You claim itemized deductions
   • You are reporting self-employment income
   • You are reporting income from sale of property

Choose the Simplest Tax For for Your Situation
EITC – Don’t Overlook It
The Earned Income Tax Credit is a financial boost for workers earning $48,362 or less a year. Four of five eligible taxpayers filed for and received their EITC last year. The IRS wants you to get what you earned also, if you are eligible.
Here are the 8 things the I want you to know about this valuable credit, which has been making the lives of working people a little easier for 36 years.
          1. As your financial, marital or parental situations change from year to year, you should review the EITC eligibility rules to determine whether you qualify. Just because you didn’t qualify last year, doesn’t mean you won’t this year.

          2. If you qualify, the credit could be worth up to $5,666. EITC not only reduces the federal tax you owe, but could result in a refund. The amount of your EITC is based on your earned income and whether or not there are qualifying children in your household. The average credit was around $2,100 last year.

          3. If you eligible for EITC, you must file a federal income tax return and specifically claim the credit – even if you are not otherwise required to file. Remember to include Schedule EIC, Earned Income Credit when you file your Form 1040 or, if you file Form 1040A, use and retain the EIC worksheet.

          4. You do not qualify for EITC if your filing status is Married Filing Separately.

          5. You must have a valid Social Security Number. You, your spouse – if filing a joint return – and any qualifying child listed on Schedule EIC must have a valid SSN issued by the Social Security Administration.

          6. You must have earned income. You have earned income if you work for someone who pays you wages, you are self-employed, you have income from farming, or – in some cases – you receive disability income.
          7. Married couples and single people without children may qualify. If you do not have qualifying children, you must also meet the age and residency requirements as well as dependency rules.

  1. Special rules apply to members of the U.S. Armed Forces in combat zones. Members of the military can elect to include their nontaxable combat pay in earned income for the EITC. If you make this election, the combat pay remains nontaxable.