1040EZ - Who Are Able To Make use of the 1040EZ?
If one makes lower than $100K per year, don’t have dependents, and don’t have a mortgage, then you’re probably eligible to file the 1040EZ. It covers salary and wages from your job (W-2), interest from the 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 for file a 1040EZ. Find out more about 1040EZ eligibility requirements.
What Information is Required?
There are four main parts of the form. 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.Name and address 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 not any 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 varieties of income - wages, salaries, and tips out of your employer (reported on Form W-2), interest income from banks along with other finance 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 additional information about 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 you’ve already paid, or 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
Here is the good thing! A lot of people get a refund, and this is also true for 1040EZ filers. Your refund or balance due is definitely the calculated by comparing the quantity 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 options for filing your taxes.
Pencil and paper
The old school technique of doing your taxes is by using paper and pencil. It requires some time as well as a little math, however you can’t beat the purchase price (it’s free). Download the shape from your IRS, grab a calculator, and study the 42 pages of instructions… Wait, never mind. Research shows it requires over 3 and half hours normally to accomplish it manually.
Pay somebody else to do it for you personally
You can work with a CPA or check out 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.
Diy With Your Phone or Computer
There are severalmobile and online, and software options, many of them quite good. We feel Common Form is the ideal option for 1040EZ filers and hope you’ll provide us with the ability 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 imagine.