1040EZ - Who Are Able To Utilize the 1040EZ?
If one makes less 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 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 eligible to file a 1040EZ. Continue reading about 1040EZ eligibility requirements.
What Information and facts are Required?
You can find four main sections of the shape. Private information, income you made, taxes you already paid, along with your tax refund or balance due.
Just the facts, ma’am. , birth date and social security number.Name and address Easy breezy. If you’re married, you enter the same information for your spouse. Since you can’t claim dependents using the 1040EZ, there is no 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 typical 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 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. 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 best part! Most people get a refund, and this is especially true for 1040EZ filers. Your refund or balance due is definitely 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.
You may have 3 alternatives for filing your taxes.
Pencil and paper
The existing school technique of doing your taxes is by using paper and pencil. It will take a while and a little math, however, you can’t beat the price (it’s free). Download the form through the IRS, grab a calculator, and study the 42 pages of instructions… Wait, never mind. Research shows it will take over 3 and half hours on average to accomplish it by hand.
Pay someone else to do it for you personally
You are able to hire a CPA or check out a tax store and pay someone to get it done for you personally. You have to pay for it, though it’s certainly less effort on your part. Around $100, if not more.
Diy 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 the ideal choice for 1040EZ hope and filers you’ll provide us with the ability to earn your company. We recommend TaxAct if you know you’re not eligible to file a 1040EZ. They handle just about any tax situation you can think of.