How to Prepare Tax Form 1040EZ

There's not much about the process of filing taxes that's easy. But if you meet certain eligibility requirements, you can file the simplest tax form, the 1040EZ. Follow these steps to ease the pain of tax time as you prepare Form 1040EZ.

Difficulty: Moderately Easy

Instructions

1. Determine whether you're eligible to file Form 1040EZ. Your annual income must be at least $8,450 if you're single, or $16,900 if married filing jointly. You can only file Form 1040EZ if you do not claim any dependents or adjustments, and the only credits you claim are the telephone excise tax or the earned income credit.

2. Fill in your Social Security number in the top right corner of the form. At the IRS site, click the link for e-file, then choose "Tax Professional," "Personal Computer" or "Free File" as your filing method if you're doing it electronically. Purchase tax software from any retailer if you're filing online. Save your mailing address label until you've completed the paper form; the tax software will ask you questions such as your address.

3. Enter your wages, interest income and unemployment compensation on Lines 1 through 3 of the Income section on Form 1040EZ. Refer to your W-2 and 1099 forms that you received from your employer for the information. Add all amounts and enter the total on Line 4 to get your adjusted gross income. If you're filing online, your software program will ask you questions about your wages.

4. Enter your standard deduction on Line 5 of the 1040EZ. If no one claims you as a dependent, use the fixed standard deduction amounts given on Line 5. Figure your taxable income on Line 6. Subtract your standard deduction on Line 5 from your adjusted gross income on Line 4.

5. Enter your withheld federal income tax and any credits on Lines 7, 8 and 9. Add them all up to figure your total payments for Line 10. Next, determine your tax by reading the tax table found in your 1040EZ instruction booklet. Again, the online tax software will prompt you to fill in the same information.

6. Calculate your tax liability. If your total payments from Line 10 are greater than your tax on Line 11, congratulations—you get a refund. Unfortunately, if your tax liability is greater than your payments, then you owe the IRS. Sign your name at the bottom of the 1040EZ. Place your mailing address label on the top of your form. If filing electronically, your Self-Select PIN will be your signature. Mail the form or send it online to the correct IRS address according to your region.

Tips & Warnings

• When sending your 1040EZ, remember to attach your relevant W-2s and 1099s to the front of your form with a paper clip. These statements give proof of your employment and interest income.
• Use scratch paper or an extra tax form for your math. Once you've calculated your totals, carefully copy them onto the correct lines of your fresh copy of the 1040EZ.
• Keep copies of your 1040EZ and other documents you used in preparing your return for up to three years. These usually come in handy in situations where proof of income is required, such as applying for a home mortgage. Also, the IRS is legally allowed to question your return within those three years through an audit.
• The electronic 1040EZ form will ask the same questions that are presented on the paper form. The difference is that the electronic form does the math for you once you've entered your numbers. Direct Deposit must be used if you expect a refund. Pay using electronic withdrawal, a credit card or pay by mail using Form 1040-V.
• Leaving out your Social Security number or your signature can cause delays in processing your 1040EZ. Make sure to fill out all relevant information so that you get your refund faster.
• Always check your math before finalizing your 1040EZ. Forms that are filled with math errors is a red flag to the IRS and may get you audited.

Resources

• Get tax forms and instructions and file Form 1040EZ online.