Exactly what is the 1040EZ? The 1040EZ form (aka the EZ form) is definitely the simplest and shortest form you can use to file your federal taxes. Every year over 20 million people file this type, around 1 in every single 6.5 federal tax statements filed. This short article explains that can utilize it, the information necessary to fill it out, and choices for filing it with the IRS.
tax software - That Can Use the 1040EZ?
If you make less than $100K annually, donât have dependents, and donât have a mortgage, then youâre probably eligible to file the 1040EZ. It covers wages and salary from your job (W-2), interest from your banking account (1099-INT), and unemployment income (1099-G). If youâre an unbiased contractor (1099-MISC), have dividend income (1099-DIV), or investment income (1099-B), then youâre not qualified to file a 1040EZ. Find out more about 1040EZ eligibility requirements.
What Information and facts are Required?
You will find four main sections of the form. Private information, income you made, taxes you already paid, as well as your tax refund or balance due.
Only the facts, maâam. , birth date and social security number.address and Name Easy breezy. If youâre married, you enter the same information for your spouse. Since you canât claim dependents with the 1040EZ, there is no spot to record their information. You canât file the EZ form unfortunately if youâre over age 65.
Income You Made
As noted earlier, the 1040EZ covers the most common 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). These forms will be sent to you by the end of January if you received any of these types of income. To learn more concerning the timing of Tax Year 2014 (filed in 2015), read through this article.
Taxes You Paid
Each of the forms you receive will report the taxes youâve already paid, or had withheld. Taxes are withheld from each paycheck you receive, so your W-2 will list the total amount of tax youâve 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 best benefit! A lot of people get a refund, and this is also true for 1040EZ filers. Your refund or balance due will be the calculated by comparing the amount of tax youâve already paid vs. whatever you actually owe. If youâre eligible for the earned income credit, it will increase your refund.
You may have 3 choices for filing your taxes.
paper and Pencil
The existing school technique of doing your taxes is to use pencil and paper. It takes a little while and a little math, but you canât beat the purchase price (itâs free). Download the form from your IRS, grab a calculator, and read the 42 pages of instructionsâ¦ Wait, never mind. Research indicates it will take over 3 and half hours typically to do it by hand.
Pay someone else to get it done for you personally
You can hire a CPA or visit a tax store and pay someone to get it done to suit your needs. You have to pay for it, though itâs certainly less effort on your part. Around $100, if not more.
Do It Yourself Together With Your Phone or Computer
There are severalmobile and online, and software options, a lot of them quite good. We know Common Form is t