1040 EZ Eligibility
Most working people in the United States have to fill out an income tax return at the end of the year to verify their earnings and determine the amount of taxes they owe or how much they may have overpaid in taxes and are therefore due a refund. The Internal Revenue Service (IRS) offers three main forms for individual tax returns: the form 1040, form 1040A and the form 1040EZ. To use the form 1040EZ, you must meet certain qualifications. If you meet these requirements, you can use form 1040EZ even if you might be able to take more deductions if you use a longer form.
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History
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The United States passed the 16th amendment in 1913. It allowed for an income tax to be levied. In the first year of taxation, the government used only one tax form, the form 1040, which all taxpayers had to use. It was not until 1982 that the IRS released the form 1040EZ as a simplified version of the tax form that some taxpayers could use to make tax filing easier.
Eligibility
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To be eligible to use the form 1040EZ as of 2010, you must not have more than $100,000 in taxable income, and no more than $1,500 of that income can be from interest. The IRS adjusts these dollar amounts periodically, but it does not change them annually. You must file as single or married filing jointly and have no dependents to use the 1040EZ form. You and your spouse cannot be 65 years or older or blind.
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Size
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The form 1040EZ is popular among taxpayers because of its length. It takes up just the front side of one sheet of paper and has just 13 lines total. Form 1040A is doubled sided and has 49 lines. Form 1040, the longest form, has 76 lines.
Features
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The form 1040EZ allows you to document your income and calculate your taxes using the tax tables in the instruction manual. It also allows you to claim the Earned Income Tax credit and the Making Work Pay credit. If you are entitled to a refund, you are allowed to have it direct deposited into your bank account when you use the form 1040EZ.
Warning
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The form 1040EZ, while shorter, does not allow you to claim most of the deductions and credits that the longer forms allow. For example, if you contributed money to your traditional IRA, you would not be able to claim a tax deduction on your form 1040EZ. This could cost you a significant amount of money. In addition, you do not have the option to itemize your deductions on form 1040EZ, so you cannot claim deductions for charitable donations, mortgage interest or high medical expenses, among other deductions.
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References
Resources
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