The federal 1040EZ income form is the Internal Revenue Service’s (IRS) substitute to the 1040 income tax form. It offers a way to file taxes quicker and easier, especially intended for taxpayers with basic tax circumstances. To be qualified to obtain this form, you should have a taxable income of an amount less than $100,000, interest income less than $1,500, and fulfill other standards set by the IRS. It is also intended for taxpayers whose status is single or married filing a joint tax return. This form may also be applicable to you if you are under the age of 65 years old and have no income adjustments claim, such as that of student loan interest.
- The first section of Form 1040EZ will require you to indicate you name, full address, and your Social Security number (SSN). Make use of the indicated name and address label provided with the instruction booklet if your 1040EZ Form was sent to you by the IRS. Mark out any information that is wrong and write the correct and accurate information. Also, specify if you wish to donate $3 to the Presidential election campaigns.
- On line 1 of the same form, indicate your wages, salaries and tips. If filing jointly with your spouse, indicate that information regarding them as well. Also indicate any unrecorded tip you and scholarship funds that were granted to you but were not use for your tuition.
- On line 2, jot down your interest that is taxable. You might be receiving Form 1099-INT or Form 1099-OID which states the amount of interest you gained in the current tax year. The interest can possibly be exempted of tax if you have used your cashed in savings for education.
- Include any earnings you have compensated even during unemployment during the tax year. Your total unemployment income can be found in the first box of your 1099G Form. The amount indicated there should be written down in the third line of Form 1040EZ.
- Get the total of the amounts you have indicated from the first line to the third line. The amount that will be obtained should be placed on line 4 of Form 1040EZ. This amount is what you call your adjusted gross income. Deduct $8,900 from this amount. Then indicate the answer on the sixth line. That amount is your taxable income.
- Take note of your already-paid taxes, the credits you qualify for, and refund you can claim. On Form 1040EZ’s line 7, write the amount of income tax you have paid. Note down any earned income credit (EIC) you are qualified for on the eighth line. If you are qualified, indicate on line 9 the total rebate credit you may claim.
- Get the sum of the amounts written from lines 7 through 9. Enter the sum on the tenth line. This is the amount of your total payments. The figure in line 6 and the tax table in the instruction booklet should be used to figure out your tax liability. Indicate this on the eleventh line.
It might take some time to compute all these amounts needed to be filled out but be reminded that if the amount written in line 10 is greater than that on the eleventh line, a refund will be due you. Otherwise, you are to pay the IRS.