1040EZ instructions - That Can Use the 1040EZ?
If you make lower than $100K each year, don’t possess dependents, and don’t possess a mortgage, then you’re probably qualified to file the 1040EZ. It covers salary and wages out of your job (W-2), interest out of your banking accounts (1099-INT), and unemployment income (1099-G). If you’re an independent contractor (1099-MISC), have dividend income (1099-DIV), or investment income (1099-B), then you’re not qualified to file a 1040EZ. Read more about 1040EZ eligibility requirements.
What Details are Required?
You will find four main parts of the shape. Personal data, income you made, taxes you already paid, and your tax refund or balance due.
Only the facts, ma’am. , date of birth and social security number.Name and address Easy breezy. You enter the same information for your spouse if you’re married. As you can’t claim dependents with the 1040EZ, there is not any location to record their information. You can’t file the EZ form unfortunately if you’re over age 65.
Income You Made
As noted earlier, the 1040EZ covers the most typical varieties of income - wages, salaries, and tips out of your employer (reported on Form W-2), interest income from banks as well as other banking institutions (reported on Form 1099-INT), and unemployment income (reported on Form 1099-G). These forms will be sent to you by the end of January if you received any of these types of income. For additional information regarding the timing of Tax Year 2014 (filed in 2015), read this article.
Taxes You Paid
Each of the forms you receive will report the taxes you’ve already paid. Alternatively, had withheld. Typically taxes are withheld from each paycheck you receive, so your W-2 will list the total amount of tax you’ve already paid via your job in box 2. It is unusual to have taxes withheld from bank interest or unemployment income, but if they were they will be reported on the 1099-INT or 1099-G you receive.
Refund or Balance Due
This is actually the best part! Most people get a refund, and this is also true for 1040EZ filers. Your refund or balance due will be the calculated by comparing the volume of tax you’ve already paid vs. everything you actually owe. It will increase your refund if you’re eligible for the earned income credit.
You may have 3 alternatives for filing your taxes.
Pencil and paper
The old school method of doing your taxes is to use pencil and paper. It takes a little while and a little math, however you can’t beat the cost (it’s free). Download the form from the IRS, grab a calculator, and study the 42 pages of instructions… Wait, never mind. Research indicates it will take over 3 and half hours normally to do it manually.
Pay someone else to get it done for you
You can employ a CPA or go to a tax store and pay someone to accomplish it for you personally. You have to pay for it, though it’s certainly less effort on your part. Around $100, if not more.
Do It Yourself Together With Your Phone or Computer
There are lots ofmobile and online, and software options, a lot of them quite good. We feel Common Form is the best option for 1040EZ hope and filers you’ll provide us with the chance to earn your company. If you know you’re not eligible to file a 1040EZ, we recommend TaxAct. They handle just about any tax situation you can imagine.