taxes - Who Can Utilize the 1040EZ?
If one makes less than $100K annually, 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 the job (W-2), interest out of your banking account (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. Continue reading about 1040EZ eligibility requirements.
What Information is Required?
You can find four main sections of the form. Personal information, income you made, taxes you already paid, and your tax refund or balance due.
Just the facts, ma’am. , date of birth and social security number.address and Name Easy breezy. You enter the same information for your spouse if you’re married. As you can’t claim dependents with all the 1040EZ, there is no place 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 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. To learn more about the timing of Tax Year 2014 (filed in 2015), look at 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. If they were they will be reported on the 1099-INT or 1099-G you receive, although it is unusual to have taxes withheld from bank interest or unemployment income.
Refund or Balance Due
Here is the best benefit! Many people get a refund, and this is especially valid for 1040EZ filers. Your refund or balance due will be the calculated by comparing the amount of tax you’ve already paid vs. what you actually owe. If you’re eligible for the earned income credit, it will increase your refund.
You may have 3 options for filing your taxes.
Pencil and paper
The existing school technique of doing your taxes is with pencil and paper. It takes a while as well as a little math, however, you can’t beat the purchase price (it’s free). Download the form from the IRS, grab a calculator, and browse the 42 pages of instructions… Wait, never mind. Research shows it will take over 3 and half hours normally to do it yourself.
Pay someone else to accomplish it for you personally
It is possible to employ a CPA or visit a tax store and pay someone to accomplish it for you personally. You have to pay for it, though it’s certainly less effort on your part. If not more, around $100.
Do-it-yourself Together With Your Phone or Computer
There are lots ofonline and mobile, and software options, many of them quite good. We know Common Form is the greatest choice for 1040EZ filers and hope you’ll provide us with the opportunity to earn your small business. We recommend TaxAct if you know you’re not eligible to file a 1040EZ. They handle almost any tax situation you can think of.
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