Exactly what is the 1040EZ? The 1040EZ form (aka the EZ form) is definitely the shortest and simplest form you can use to file your federal income tax
efile - Who Can Use the 1040EZ?
If you make less than $100K each year, don’t have 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 your 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. Continue reading about 1040EZ eligibility requirements.
What Information and facts are Required?
You can find four main parts of the form. Personal data, income you made, taxes you already paid, and your tax refund or balance due.
Just 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. Since you can’t claim dependents using 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 common types of income - wages, salaries, and tips out of your employer (reported on Form W-2), interest income from banks and 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. To learn more 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. 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 the good thing! A lot of people get yourself a refund, and this is especially true for 1040EZ filers. Your refund or balance due will be the calculated by comparing the amount 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 may have 3 choices for filing your taxes.
paper and Pencil
The old school way to do your taxes is with paper and pencil. It takes a while along with a little math, but you can’t beat the price (it’s free). Download the form from your IRS, grab a calculator, and browse the 42 pages of instructions… Wait, never mind. Studies have shown it takes over 3 and half hours typically to get it done yourself.
Pay somebody else to accomplish it to suit your needs
It is possible to work with a CPA or check out a tax store and pay someone to do 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 Along With Your Phone or Computer
There are numerousonline and mobile, and software options, many of them quite good. We know Common Form is the greatest option for 1040EZ filers and hope you’ll provide us with the opportunity to earn your business. We recommend TaxAct if you know you’re not eligible to file a 1040EZ. They handle virtually any tax situation you can imagine.