The 1040EZ form has been around for quite a while and each year the form is available to help people file their taxes it does change somewhat from year to year. The form 1040EZ does have some new directions for 2006 and the following information will be very helpful for those filing their 1040 EZ.
The one page Form 1040EZ was designed to be easy and is basically for people filing as single or married filing jointly and were paid a salary and have taxable income not exceeding $100,000.
In addition to be eligible to use the Form 1040EZ, you and your spouse must be under age 65 and not blind, you do not claim any dependents and your interest income is not over $1,500. read more information about tax calculation at https://www.okcalculator.com/
Form 1040EZ Tips
You may be able to get larger tax deductions, by using form 1040 if your itemized deductions exceed the standard deduction. The standard deduction is $5,700 for most individuals and $11,400 for most married couples filing a joint return.
Also, if you suffered personal casualty losses from certain federally declared disasters, you may qualify for an increased standard deduction and file Form 1040 and you should also consider that if you purchased a new vehicle after February 16, 2009, you may qualify for an increased standard deduction only if you file Form 1040A or Form 1040. Each tax situation is different so if you are preparing your tax return be sure to review the IRS publications and help screens.
If your adjusted gross income (AGI) is $58,000 or less, you can file for free from the IRS website, using Free File software or by using any of the four well known cooperating companies reviewed in my website.
It’s Very Easy and Just One Page to Fill in
It’s easy to see if you will receive an IRS refund or State refund simply entering your wage and tax information into one of the user friendly forms of any of the web based online tax preparation service companies.
Just a couple more questions and then you will be able to determine if you can qualify to use the 1040EZ form, you cannot have unemployment compensation, or a qualified state program results, or earned tips they must be reported in boxes 4 and 7 on Form W-2, and now you are almost complete.
Also the following will prevent you from being able to qualify to use the 1040EZ form such as having a sole proprietorship, which is a home-based or small businesses that files Schedule C and you cannot have a capital gain transaction or any IRA deductions.
If you do not meet these strict 1040EZ form requirements then alternatively, you must either file Form 1040 or Form 1040A, which are not as simple as the Form1040EZ.
If you prepare your own tax return, or hire a CPA or tax preparer for a complex tax form, it makes sense to start now. There are lots of benefits you can get out of it. So don’t worry things out!