Simple

The Simple package allows only the simplest types of tax returns. You can file the Simple package if all the following are true:

• Your filing status is single or married filing jointly
• You do not claim any dependents
• You do not claim any adjustments to gross income
• You do not claim any credits other than the Earned Income Credit
• You, and your spouse if filing jointly, are under age 65 and are not blind
• Your taxable income is less than $100,000
• You did not receive any advance Earned Income Credit payments
• You do not owe any household employment taxes on wages paid to household employees
• You are not a debtor in a Chapter 11 bankruptcy case filed after Oct. 16, 2005
• You are not claiming the additional standard deduction for net disaster losses or qualified motor vehicle taxes
• Your income is only from:
  • Wages
  • Salaries
  • Tips (must be reported in boxes 5 and 7 of Form W-2)
  • Unemployment compensation
  • Taxable scholarships and fellowship grants
  • No more than $1,500 in interest income
  • Alaska Permanent Fund dividends

Basic

You can file the Basic package if all the following are true:

• Your income is only from:
  • Wages, salaries, tips
  • Interest and ordinary dividends, including Alaska Permanent Fund dividends
  • Capital gain distributions
  • Taxable scholarship and fellowship grants
  • Pensions, annuities and IRAs
  • Unemployment compensation
  • Taxable Social Security and railroad retirement benefits
• Your adjustments to income are only from:
  • Educator expenses
  • IRA deduction
  • Student loan interest deduction
  • Tuition and fees deduction
• You do not itemize deductions
• Your taxable income is less than $100,000
• You did not have an alternative minimum tax adjustment on stock acquired from the exercise of an incentive stock option
• The only tax credits you claim are:
  • Child and Dependent Care Credit
  • Elderly or Disabled Credit
  • Child Tax Credit
  • Additional Child Tax Credit
  • Education credits
  • Retirement Savings Contribution Credit
  • Earned Income Credit

Deluxe

If you do not qualify for the Simple or Basic packages, you will complete the Deluxe package which is associated with Form 1040. All types of income, credits, deductions, and taxes can be reported with this package. You must file the Deluxe package for any of the following:

• You have self-employment income (including farm income)
• You received $20 or more in unreported tips in any one month
• You received income as a partner in a partnership, as a shareholder of an S corporation, or as a beneficiary of an estate or trust
• You received dividends on insurance policies if they exceed the total of all net premiums you paid for the contract
• Your taxable income is $100,000 or more
• You itemize deductions
• Your Form W-2, box 12, shows uncollected tax on tips or group term life insurance
• Your Form W-2, box 12, show a code Z
• You owe excise tax on insider stock compensation from an expatriated corporation
• You are a debtor in a Chapter 11 bankruptcy case filed after October 16, 2005
• You have an alternative minimum tax adjustment on stock you acquired from the exercise of an incentive stock option
• You owe household employment taxes
• You are claiming the adoption credit or received adoption benefits from an employer
• You are eligible for the health coverage tax credit
• You are an employee and your employer did not withhold Social Security and Medicare tax
• You had a qualified health savings account funding distribution from your IRA
• You have a net disaster loss attributable to a federally declared disaster
• You are eligible for the First-time Homebuyer Credit

State Preparation is Automatic!

After you complete your federal tax return, your information will automatically create the needed state tax return(s) based on any income you might've received from those states. Answer a few simple questions related to your state and you're done. If you need more than one state, click on States in the left menu to add more.

The state fee is only $29.95, which covers as many states as you need to prepare and e-file.

IRS Extends Deadlines until October 31 for Taxpayers Affected by the Natural Disasters of 2011

The IRS has extended filing season until October 31, 2011 for those taxpayers affected by Tropical Storm Lee, Hurricane Irene or the Texas Wildfires. If you live in one of these counties that has been designated a federal disaster area, you could qualify for the extension of time to file your federal income return without receiving a late penalty. This only affects those taxpayers who requested an extension to file.

1040.com will stay available until October 31, 2011 for those taxpayers to file their income taxes. Please note if you need to include a payment with your e-filed return those need to be in by October 20th.