Just the thought of preparing your own tax return may make you shudder, but the average person is more than capable of completing Form 1040EZ and Form 1040A (the short form). Form 1040 (the long form) is definitely more challenging but is much less so thanks to the availability of robust tax preparation software programs and online services. The biggest requirement is time.

Types of Federal Tax Return Forms

There are a few versions of the U.S. Individual Income Tax Return Form 1040:

• Form 1040EZ: The simplest form, for those under age 65 with no dependents, no itemized deductions, no more than $1,500 of taxable interest income, no advance earned income tax credit (EITC), and taxable income from line six of less than $100,000. There are a few other little caveats, so be sure to read the instructions with the form to make sure you qualify to use it.

• Form 1040A: Only slightly more difficult to complete than the 1040EZ. You can use this form if you don't itemize deductions, your taxable income is less than $100,000, you claim only certain tax credits (see the form instructions for a list), and you had income only from the following sources: wages, salaries, and tips; interest and ordinary dividends; capital gains; taxable scholarship and fellowship grants; pensions, annuities, and IRAs; unemployment compensation; taxable social security; Alaska permanent fund dividends.

• Form 1040 (the long form): If you don't qualify to use Form 1040A, you're stuck with Form 1040—but you're in good company. Nearly three-quarters of all taxpayers use this form. There are a number of special circumstances that require you to use the long form, so be sure to read the instructions.

Using Tax Software on Your PC

Doing your own taxes is easy using tax software such as TurboTax by Intuit or TaxCut by H&R Block. You can buy the software from Staples or other office supply stores or download them online for around $30 for the basic version. They handle both simple and complex returns with ease, although it does take a bit of time. The program walks you through an interview process by asking you questions, does all the calculations, and produces your finished tax return and any necessary schedules, plus worksheets to keep in your file as backup. You can either print the return and mail it or file it electronically. Both federal and state versions are available.

Using Web-Based Software

If you don't want to buy new tax software every year, you can use Web-based software. It's no longer significantly cheaper than buying your own, so the main advantage now to Web-based software is that you don't have to be on your own PC to work on your return. You can do so from any computer that has access to the Internet. You don't have to complete your return in one sitting; you can come back to it as often as you want until you're ready to hit the “send” button.

Using Paper and Pen

For technophobes or those with the simplest of tax returns, there's nothing more satisfying than preparing tax returns with pen and paper. However, one of the disadvantages is that it takes much longer to get your refund. If you file electronically, you can get your money in half the time — in nine to 16 days if you have your refund automatically deposited to your bank account. If you file a paper return, expect it to take at least twice that time, depending on when you file.