Question

A taxpayer is required to file form 1040 when they claim what adjustment to income

Answer 1

Ans: )

An individual taxpayer in U.S is required to file form 1040 necessarily if he/ she have a taxable income above $ 100,000, but the 1040 also known as the long form provides certain advantages to the taxpayer such as:

1. Ability to submit documents and information of complicated investments made during the year but not claimed earlier.
2. Option to itemize the deductions claimed in the return
3. Ability to claim various expenses and tax credits only allowable if claimed through returns.
4. Opportunity to make adjustments to the information related to deductions provided earlier during the year to the employers, thus enabling them to seek refunds for the overpayment of taxes done by the employers on their behalf.

On the contrary form 1040A & 1040EZ which are simplified versions of form 1040 only allow the tax payer to claim a standard deduction on the income earned during the year.