1040EZ - That Can Use the 1040EZ?
If one makes less than $100K annually, don’t have dependents, and don’t use a mortgage, then you’re probably qualified to file the 1040EZ. It covers salary and wages out of your job (W-2), interest from your banking account (1099-INT), and unemployment income (1099-G). If you’re an unbiased contractor (1099-MISC), have dividend income (1099-DIV), or investment income (1099-B), then you’re not qualified to file a 1040EZ. Continue reading about 1040EZ eligibility requirements.
What Information and facts are Required?
You can find four main parts of the shape. Private information, income you made, taxes you already paid, as well as your tax refund or balance due.
Only the facts, ma’am. , birth date and social security number.address and Name Easy breezy. You enter the same information for your spouse if you’re married. As you can’t claim dependents using the 1040EZ, there is no spot 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 frequent kinds of income - wages, salaries, and tips out of your employer (reported on Form W-2), interest income from banks and other financial institutions (reported on Form 1099-INT), and unemployment income (reported on Form 1099-G). If you received any of these types of income, these forms will be sent to you by the end of January. 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. 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, typically. If they were they will be reported on the 1099-INT or 1099-G you receive, although it is unusual to have taxes withheld from bank interest or unemployment income.
Refund or Balance Due
This is actually the best part! Many people get a refund, and this is especially valid for 1040EZ filers. Your refund or balance due is definitely the calculated by comparing the volume of tax you’ve already paid vs. what you actually owe. It will increase your refund if you’re eligible for the earned income credit.
You might have 3 alternatives for filing your taxes.
paper and Pencil
The old school method of doing your taxes is to use paper and pencil. It will take a while along with a little math, however, you can’t beat the purchase price (it’s free). Download the form from your IRS, grab a calculator, and read the 42 pages of instructions… Wait, never mind. Studies have shown it requires over 3 and half hours normally to accomplish it yourself.
Pay somebody else to accomplish it for you personally
It is possible to employ a CPA or check out a tax store and pay someone to get it done to suit your needs. It’s certainly less effort on your part, but you have to pay for it. If not more, around $100.
Diy With Your Phone or Computer
There are severalonline and mobile, and software options, many of them quite good. We feel Common Form is the ideal selection for 1040EZ filers and hope you’ll provide us with the opportunity to earn your small business. We recommend TaxAct if you know you’re not eligible to file a 1040EZ. They handle virtually any tax situation you can think of.