- Because it is so streamlined, the 1040EZ is only designed for specific filers that have no itemized deductions. Basically, if you have an income under $100,000, interest income under $1500, are under 65 and are claiming only the standard deduction, you may use the 1040EZ. Other qualifications are that you do not qualify for the Earned Income Credit for children or any other tax credits.
- Filing the 1040EZ tax form will streamline the time you need to file your tax return from several hours to several minutes. You can also file an electronic form, which will allow the IRS to receive your form instantly. Because the 1040EZ allows the IRS to estimate your taxes, you will receive your refund sooner than if you filed the 1040 long form.
- As with all income tax returns, you will need your basic identification and income information to file the 1040EZ tax form. The 1040 EZ comes with instructions that will tell you where to look on your W2 form for each amount needed, such as your total wages and Federal tax withheld. If you have more than one W2 you add the total wages on each one and do the same for the tax withheld.
- By allowing the IRS to do the work for you, you have less risk of making a costly mistake in calculations as well as less chance of being audited. The 1040EZ was designed for taxpayers to file themselves, so you will save the cost of hiring a professional tax preparer.
- By filing form 1040EZ you may miss some deductions that you'd would otherwise be able to take using the standard 1040 or 1040A. The IRS website has great publications to help you decide whether it would be more beneficial for you to file using one of the longer forms or whether the 1040EZ is the right choice for you.
