If you’ve been on the hunt for a tax-submitting software earlier of the imminent tax season in 2019, you then might have stumble upon lots of offers wherein the software business enterprise basically lets you document your federal taxes free of charge. However, there’s simplest one condition – you must qualify for the IRS 1040EZ shape.
What is that this 1040EZ shape and how can you know if you qualify? And even in case you qualify, how are you going to report? Well, don’t worry – we’re right here to help!
What is the 1040EZ Form?
It’s the most effective model of the 1040 shape and hence, you may usually report the 1040EZ without spending a dime with many tax preparation services out there. It handiest lets in tax breaks for earned earnings credit and disallows all other styles of deductibles.
Are You Eligible to File a 1040EZ Form?
To put things simply, so long as your taxable profits is less than $100,000 according to year and which you don’t claim any dependents, you can then be certified to document a 1040EZ form. The shape permits you to file as a single, or if married, jointly.
Here’s the CliffsNotes version of the details:
- Taxable earnings less than $100,000 yearly
- Can be filed single or, if married, jointly
- No structured claims
- You do now not itemise your deductions
- You do now not declare credit or deductions, except Earned Income Credit (EIC)
- You do no longer acquire self-employment income, alimony, dividends and capital gains
- Your income assets were handiest from wages, salaries, pointers reported in your W-2 (packing containers5 and 7), taxable scholarships, taxable fellowship grants, unemployment compensation, and the Alaska Permanent Fund dividends.
- Your taxable interest is $1,500 or much less
- You do now not owe household employment taxes on wages you paid to a household employee
- You are not a debtor in a Chapter 11 financial disaster case filed after Oct. 16, 2005
- You did not have an opportunity minimum tax adjustment on stock you acquired from the exercising of an incentive inventory option
- You don’t claim modifications to earnings, like student-loan interest or an IRA deduction
- You, and your spouse if submitting a joint return, were underneath age 65 on January 1, 2018, and now not blind at the stop of 2017.
What Do You Need to Fill Out Your 10440EZ?
There are plenty of facts that you can need to prepare beforehand, but those are some of the fundamentals:
- Social security numbers and dates of delivery for you, and if you’re married, your spouse
- Statements of wages earned – W-2 and 1099s
- Statements of interest or dividends from banks, brokerages
- Proof of any tax credits or tax deductions
- A copy of your past tax return
- Your bank account number and routing number for the IRS to deposit any refund
Filing Your 1040EZ Form
As this is the easiest form to fill, there are best 5 sections on this form:
Your own information, and your spouse’s if you’re filing jointly.
Sources of Income
As mentioned, to report a 1040EZ shape, your income resources can most effective be from wages, salaries, guidelines reported in your W-2 (packing containers5 and 7), taxable scholarships, taxable fellowship grants, unemployment compensation, and the Alaska Permanent Fund dividends. If you have earnings from other resources, like shares or dividends, then you’ll have to record a 1040 or a 1040A.
Payments, Credits and Tax
This is where you can list the federal tax withheld out of your pay-check (your employer will come up with a W-2 to report the overall quantity withheld) and claim your tax credits. For the 1040EZ form though, you may most effective claim the earned earnings credit score.
Refunds and Amounts Owe
This is in which you’ll calculate the total tax bills and credit and deduct it from the calculated tax on your income. If your general exceeds your earnings tax, then you definitely have overpaid and are entitled to a refund. You’ll then need to fill in your financial institution records to get your refund at once deposited into your account.
If it’s the other way around, then you definitely will need to pay the essential balance. The instructions to accomplish that are supplied at the 1040EZ form.
Signing Your Tax Return
Once everything’s done, make sure to double test the shape at least one closing time before signing your return. Surprisingly enough, many people neglect to do that step, rendering all their hard-work invalid. A tax return isn’t always valid without a signature, after all. Note that in case you’re submitting electronically, you can electronically sign your tax return.