Differences Among Tax Forms 1040, 1040A & 1040EZ

There are a few types of 1040 forms.

Decades ago, the only option for filing federal income taxes was through Form 1040, a document whose intricacies have spawned encyclopedias of instructions. Realizing that not all tax situations required such a complex form, the Internal Revenue Service introduced Form 1040A in 1980 and 1040EZ in 1982.

1040EZ

Form 1040EZ, the simplest form, consists of one form page and one instructions page. Use this form if your filing status is single or married filing jointly, your taxable income is under $100,000, and your income comes only from wages, tips, taxable grants and scholarships, interest under $1,500, Alaska Permanent Fund dividends and/or unemployment compensation.

1040EZ restrictions

You cannot have dependents, a household employee who is taxed, deductions or adjustments to income such as for retirement savings contributions or student loan interest.

1040A

The 1040A is slightly more complicated with two pages of forms. To file this document, you must meet most of the requirements for the 1040EZ filing with some exceptions. You can have dependents and interest from income, dividends, capital gains, pensions, annuities, Social Security and/or retirement savings.

1040A deductions

The 1040A form allows deductions prohibited by the 1040EZ, including retirement savings contributions, student loan interest, educator expenses, tuition, child care and care for the elderly or disabled.

1040

Form 1040 is the most complicated, with two pages of main forms, numerous sub forms and a variety of instruction booklets. In general, if you do not meet any of the conditions for 1040EZ or 1040A, you must use this form.

1040 Differences

You must use this form if your income is more than $100,000, you itemize your deductions, owe taxes on household employees, or have income from an estate or trust, self-employment or unreported tips.

References

• IRS website