Form 1040 EZ is the form used by single as well as joint filers who have no dependents. This is the alternative of Form 1040 commonly termed as, “easy form” because it is notably shorter than the former. This form allows taxpayers to benefit from the standard credits and tax deductions. However, the taxpayer is not allowed to claim adjustments to tax credits or income tax nor itemize deductions save for the earned income credits. Examples of unallowable claims are the additional standard deductions intended for qualified motor vehicle taxes, net disaster losses, and real estate taxes, as well as educator expense deduction, student loan interest, tuition and similar fees.
To be qualified to utilize this form, tax payer and his/her spouse must be below 65 years of age as of January 1, 2011 and they only receive salaries, wages, fellowship grants, taxable scholarship, unemployment compensation, Alaska Permanent Fund dividends, qualified state tuition program earnings with a taxable interest below $1,500 and tips included in Form W-2’snumber 5 and 7 boxes. It is equally important that a tax payer’s income does not amount to $100,000 and does not obtain any of the advance earned income credit payments. It is required that a taxpayer must ensure that all household employment taxes on the wages of household employee are paid, if any. A person who happens to be a debtor in a bankruptcy case of Chapter 11 filed later than October 16, 2005 is not qualified.
The main purpose of this simple tax form is to obtain the information as to whether any amount is owed to the federal government or if the individual is entitled to a refund. It is applicable for taxpayers with uncomplicated tax situation. This form is the first tax form filled up by first-time taxpayers like young adults who just launched their careers.
Category: Tax Return Forms, Tax refund, Tax deductions.
Link to IRS website: http://www.irs.gov/pub/irs-pdf/f1040ez.pdf