Sunday, July 17, 2016

When You Should Use Form 1040EZ



Form 1040EZ is the easiest to file, but it does not apply to all situations. Only single and joint filers with no dependents are able to use Form 1040EZ. In order to file with form 1040EZ you must meet ALL of the following conditions:
  • Taxable income must be less than $100,000
  • Cannot claim any dependents 
  • Filing status must be single or married filing jointly. If you were a nonresident alien at any time last year, your filing status must be married filing jointly
  • You (and your spouse) must be under age 65 and not blind at the end of the last year.
  • Income must be only from wages, salaries, tips, unemployment compensation, Alaska Permanent Fund dividends, taxable scholarship and fellowship grants, and taxable interest of $1,500 or less
  • You cannot claim any adjustments to income, such as a deduction for IRA contributions or student loan interest
  • No credits allowed other than the earned income credit
  • You cannot owe household employment taxes on wages for a household employee
  • Cannot claim the additional standard deduction
Form 1040EZ is the most limited in scope. It is useful only for taxpayers with simple returns.





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