taxes - That Can Utilize the 1040EZ?
If one makes lower than $100K per year, don’t have any dependents, and don’t possess a mortgage, then you’re probably eligible to file the 1040EZ. It covers wages and salary from your job (W-2), interest from the bank account (1099-INT), and unemployment income (1099-G). If you’re a completely independent contractor (1099-MISC), have dividend income (1099-DIV), or investment income (1099-B), then you’re not qualified to file a 1040EZ. Find out more about 1040EZ eligibility requirements.
What Details are Required?
You will find four main parts of the shape. Private information, income you made, taxes you already paid, and your tax refund or balance due.
Merely the facts, ma’am. , date of birth and social security number.address and Name Easy breezy. You enter the same information for your spouse if you’re married. Since you can’t claim dependents with all the 1040EZ, there is no spot to record their information. If you’re over age 65, you can’t file the EZ form unfortunately.
Income You Made
As noted earlier, the 1040EZ covers the most common kinds of income - wages, salaries, and tips from your employer (reported on Form W-2), interest income from banks along with other banking 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 more information concerning 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, or 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
Here is the good thing! A lot of people obtain a refund, and this is especially true for 1040EZ filers. Your refund or balance due will be the calculated by comparing the volume of tax you’ve already paid vs. whatever you actually owe. If you’re eligible for the earned income credit, it will increase your refund.
You might have 3 alternatives for filing your taxes.
Pencil and paper
The old school way to do your taxes is by using paper and pencil. It takes a 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. Studies have shown it requires over 3 and half hours typically to accomplish it yourself.
Pay somebody else to do it to suit your needs
You can work with a CPA or go to a tax store and pay someone to get it done to suit your needs. You have to pay for it, though it’s certainly less effort on your part. Around $100, if not more.
Diy Together With Your Phone or Computer
There are severalmobile and online, and software options, most of them quite good. We believe Common Form is the greatest option for 1040EZ filers and hope you’ll provide us with the chance to earn your small business. If you know you’re not eligible to file a 1040EZ, we recommend TaxAct. They handle almost any tax situation you can think of.