Most taxpayers qualify to use Form 1040A, often called a "short form." This form allows you to claim the most common income adjustments. You cannot use Form 1040A if you want to itemize your deductions.

• Your taxable income is under $100,000.

• Any age, any filing status.

• You have income from wages, interest, dividends, capital gains distributions, IRA or pension distributions, unemployment compensation, social security benefits, and scholarships.

• You can claim the following adjustments to income: IRA contributions, student loan interest, tuition deduction, fees, and classroom expenses.

• Claim the standard deduction.

• You can claim the following tax credits: Child and dependent care credit, credit for the elderly and disabled, american opportunity credit, lifetime.

• Learning Credit, retirement savings contribution credit, child tax credit, additional child tax credit, and earned income credit.

• You did not exercise any incentive stock options.

• Parents of college students may want to consider filing form 1040A instead of Form 1040 in an effort to help their college student qualify for a larger financial aid package.

Any taxpayer can use Form 1040. Although it takes longer to complete, Form 1040 can handle any tax situation no matter how complex. You should use Form 1040 if:

• You have taxable income of $100,000 or more.

• You are itemizing your deductions (such as mortgage interest or charity).

• You have income from a rental, business, farm, S-corporation, partnership, or trust.

• You have foreign wages, paid foreign taxes, or are claiming tax treaty benefits.

• You sold stocks, bonds, mutual funds, or property.

• You are claiming adjustments to income from a penalty for early withdrawal of savings, moving expenses, or health savings accounts.

• You must calculate surcharges, such as state health insurance and social security taxes, on undeclared tips, household employment taxes, or 10% tax on early distributions from a retirement plan.