Exactly what is the 1040EZ? The 1040EZ form (aka the EZ form) will be the simplest and shortest form will file your federal income taxes. Every year o

tax software - That Can Utilize the 1040EZ?

If you make under $100K per year, don’t possess dependents, and don’t use a mortgage, then you’re probably qualified to file the 1040EZ. It covers salary and wages from your job (W-2), interest out of your banking accounts (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 eligible to file a 1040EZ. Read more about 1040EZ eligibility requirements.

What Details are Required?

You will find four main sections of the shape. Personal data, income you made, taxes you already paid, along with your tax refund or balance due.

Personal Data

Only the facts, ma’am. , birth date and social security number.address and Name Easy breezy. If you’re married, you enter the same information for your spouse. As you can’t claim dependents with all the 1040EZ, there is no place 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 varieties of income - wages, salaries, and tips from your employer (reported on Form W-2), interest income from banks as well as other finance 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 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. 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 the best benefit! Most people obtain a refund, and this is especially true for 1040EZ filers. Your refund or balance due is definitely the calculated by comparing the quantity 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.

Filing Options

You might have 3 choices for filing your taxes.

paper and Pencil

The existing school technique of doing your taxes is by using pencil and paper. It takes a little while and a little math, but you can’t beat the cost (it’s free). Download the form from your IRS, grab a calculator, and browse the 42 pages of instructions… Wait, never mind. Research shows it will take over 3 and half hours on average to get it done by hand.

Pay somebody else to get it done for you personally

You can 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. Around $100, if not more.

Diy Together With Your Phone or Computer

There are severalonline and mobile, and software options, many of them quite good. We feel Common Form is the best choice for 1040EZ hope and filers you’ll provide us with the opportunity to earn your small business. If you know you’re not eligible to file a 1040EZ, we recommend TaxAct. They handle virtually any tax situation you can think of.