How to Fill Out IRS Form 1040EZ for Personal Income Tax

Use the federal tax schedule to figure tax liability.

IRS Form 1040EZ is a simple, single page income tax return for single or married taxpayers with no dependents. Individuals that itemize deductions and have certain types of income cannot use Form 1040EZ. If itemized deductions are greater than the standard deduction, taxpayers should use Form 1040 to reduce their tax liability. Taxpayers can find most federal and state tax forms and tax instruction booklets, including Form 1040EZ, at local libraries, post offices and online.

Things You'll Need

• Federal tax schedule

Instructions

1. Fill out the top portion of the form with individual personal information. If filing a joint return, include spousal personal information.

2. Calculate adjusted gross income by adding wages or tips from your W2 on line 1.On line 2 enter taxable interest, which is usually reported on Form 1099. Enter any unemployment compensation or Alaska Permanent Fund dividends on line 3. Add lines 1, 2 and 3 and enter that amount on line 4.

3. Calculate taxable income by entering the standard deduction and exemptions and entering the amount listed on line 5. Then subtract line 5 from line 4 for taxable income and enter the amount on line 6.

4. Calculate payments and credits by entering any federal income taxes withheld from Forms W2 and 1099 on line 7. Enter work pay credit on line 8. Enter earned income credit on line 9. Add lines 7, 8 and 9 and enter the amount on line 10.

5. Look up the tax liability amount by taking taxable income from line 6 and using the IRS tax schedule. Enter the amount from the tax schedule on line 11.

6. Determine whether the amount from line 10 of total payments and credits is larger than the tax liability on line 11. If it is, a refund is due. Subtract line 11 from line 10 and enter the amount on line 12 for your refund.

   If the amount from line 11 is larger than line 10, subtract line 10 from line 11 and enter the amount on line 13. The amount on line 13 should be paid to the IRS.

Tips & Warnings

• Double check calculations for accuracy.

References

• Internal Revenue Service, 1040EZ Instructions 2010