tax software - Who Can Make use of the 1040EZ?
If one makes less than $100K annually, don’t have any dependents, and don’t possess a mortgage, then you’re probably eligible to file the 1040EZ. It covers wages and salary from the job (W-2), interest from your banking account (1099-INT), and unemployment income (1099-G). If you’re a completely independent contractor (1099-MISC), have dividend income (1099-DIV), or investment income (1099-B), then you’re not qualified to file a 1040EZ. Find out more about 1040EZ eligibility requirements.
What Information and facts are Required?
You can find four main sections of the form. Personal data, income you made, taxes you already paid, along with your tax refund or balance due.
Just the facts, ma’am. , date of birth 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 with the 1040EZ, there is no place 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 common varieties of income - wages, salaries, and tips from the employer (reported on Form W-2), interest income from banks and other banking 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 regarding the timing of Tax Year 2014 (filed in 2015), read 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. 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 good thing! Most people obtain a refund, and this is especially true for 1040EZ filers. Your refund or balance due is 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 choices for filing your taxes.
Pencil and paper
The previous school technique of doing your taxes is by using pencil and paper. It will take a little while and a little math, but you can’t beat the price (it’s free). Download the shape from the IRS, grab a calculator, and study the 42 pages of instructions… Wait, never mind. Research shows it takes over 3 and half hours typically to do it by hand.
Pay somebody else to accomplish it to suit your needs
It is possible to hire a CPA or go to a tax store and pay someone to do 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, most of them quite good. We know Common Form is the greatest choice for 1040EZ hope and filers you’ll give us the ability to earn your small 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.
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