The 1040EZ form (aka the EZ form) is definitely the simplest and shortest form you can use to file your federal income taxe s. Each year over 20 million people file this form, around 1 in every single 6.5 federal tax returns filed. This short article explains that can apply it, the information required to fill it out, and options for filing it with the IRS. - 1040EZ
That Can Use the 1040EZ?
If you make lower than $100K per year, don�t have dependents, and don�t use a mortgage, then you�re probably qualified for file the 1040EZ. It covers wages and salary out of your job (W-2), interest out of your banking accounts (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 is Required?
You can find four main parts of the form. Private information, income you made, taxes you already paid, as well as your tax refund or balance due.
Private Information
Merely 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 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 varieties of income - wages, salaries, and tips from 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). These forms will be sent to you by the end of January if you received any of these types of income. For more 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, 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
This is actually the good thing! Most people obtain a refund, and this is especially valid for 1040EZ filers. Your refund or balance due is the calculated by comparing the volume of tax you�ve already paid vs. everything you actually owe. If you�re eligible for the earned income credit, it will increase your refund.
Filing Options
You have 3 choices for filing your taxes.
paper and Pencil
The old school method of doing your taxes is to use paper and pencil. It requires some time and a little math, however you can�t beat the price (it�s free). Download the shape from your IRS, grab a calculator, and study the 42 pages of instructions� Wait, never mind. Research indicates it takes over 3 and half hours typically to do it manually.
Pay another person to do it for you personally
You can hire a CPA or visit a tax store and pay someone to get it done for you. It�s certainly less effort on your part, but you have to pay for it. If not more, around $100.
Do-it-yourself With Your Phone or Computer
There are numerousmobile and online, and software options, a lot of them quite good. We feel Common Form is the ideal selection for 1040EZ hope and filers you�ll give us the opportunity to earn your company. If you know you�re not eligible to file a 1040EZ, we recommend TaxAct. They handle virtually any tax situation you can imagine. - 1040EZ
That Can Use the 1040EZ?
If you make lower than $100K per year, don�t have dependents, and don�t use a mortgage, then you�re probably qualified for file the 1040EZ. It covers wages and salary out of your job (W-2), interest out of your banking accounts (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 is Required?
You can find four main parts of the form. Private information, income you made, taxes you already paid, as well as your tax refund or balance due.
Private Information
Merely 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 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 varieties of income - wages, salaries, and tips from 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). These forms will be sent to you by the end of January if you received any of these types of income. For more 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, 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
This is actually the good thing! Most people obtain a refund, and this is especially valid for 1040EZ filers. Your refund or balance due is the calculated by comparing the volume of tax you�ve already paid vs. everything you actually owe. If you�re eligible for the earned income credit, it will increase your refund.
Filing Options
You have 3 choices for filing your taxes.
paper and Pencil
The old school method of doing your taxes is to use paper and pencil. It requires some time and a little math, however you can�t beat the price (it�s free). Download the shape from your IRS, grab a calculator, and study the 42 pages of instructions� Wait, never mind. Research indicates it takes over 3 and half hours typically to do it manually.
Pay another person to do it for you personally
You can hire a CPA or visit a tax store and pay someone to get it done for you. It�s certainly less effort on your part, but you have to pay for it. If not more, around $100.
Do-it-yourself With Your Phone or Computer
There are numerousmobile and online, and software options, a lot of them quite good. We feel Common Form is the ideal selection for 1040EZ hope and filers you�ll give us the opportunity to earn your company. If you know you�re not eligible to file a 1040EZ, we recommend TaxAct. They handle virtually any tax situation you can imagine. - 1040EZ