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tax software - Who Can Make use of the 1040EZ?

If one makes under $100K annually, don’t possess dependents, and don’t possess a mortgage, then you’re probably eligible to file the 1040EZ. It covers salary and wages from your job (W-2), interest from your banking accounts (1099-INT), and unemployment income (1099-G). If you’re an independent contractor (1099-MISC), have dividend income (1099-DIV), or investment income (1099-B), then you’re not qualified for file a 1040EZ. Read more about 1040EZ eligibility requirements.

What Details are Required?

You can find four main parts of the shape. Personal data, income you made, taxes you already paid, along with your tax refund or balance due.

Personal Information

Only the facts, ma’am. , birth date 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 using the 1040EZ, there is absolutely no location 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 types 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). 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. 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. 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 part! Many people get yourself a refund, and this is especially true for 1040EZ filers. Your refund or balance due is definitely the calculated by comparing the amount of tax you’ve already paid vs. whatever you actually owe. If you’re eligible for the earned income credit, it will increase your refund.

Filing Options

You might have 3 options for filing your taxes.

paper and Pencil

The existing school technique of doing your taxes is by using paper and pencil. It takes a little while and a little math, however you can’t beat the purchase price (it’s free). Download the form through the IRS, grab a calculator, and study the 42 pages of instructions… Wait, never mind. Studies have shown it requires over 3 and half hours on average to accomplish it manually.

Pay somebody else to do it to suit your needs

You are able to employ a CPA or visit a tax store and pay someone to get it done for you. You have to pay for it, though it’s certainly less effort on your part. Around $100, if not more.

Do It Yourself With Your Phone or Computer

There are numerousonline and mobile, and software options, a lot of them quite good. We feel Common Form is the ideal choice for 1040EZ hope and filers you’ll provide us with the ability to earn your business. 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.