Who All Qualify To File Form 1040ez?

Form 1040EZ was developed and introduced by internal Revenue Service (IRS) department as simpler (easy) version of form 1040. There are three basic from to choose while filing your tax return; Form 1040, Form 1040A and Form 1040EZ. 1040EZ version is not only the simplest version among the three but also the shortest one which requires lesser information on your part. Further here we will discuss regarding the Form 1040EZ and who all qualify to file there returns through this form.

The very reason of designing of form 1040EZ was to keep it very simple so that individual taxpayers and prepare and file it without any fuss. Any complex adjustments and deductions were kept out of this purview of this form. Involvement in following financial activities would prevent you from using this form:

• Capital gain transactions in a tax year.
• Sole proprietorship business or any home based small business that files a Schedule C.
• In case you have to receive or pay Alimony.
• You plan to claim any IRA deductions
• You plan to claim any social security benefits.
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In case you meet the following basic requirement you can use form 1040EZ:
• You should not have taxable income in excess of $ 100,000
• Your filing status should only be single or married filing jointly.
• Taxpayer and his/her spouse should be under the age of 65 years and not blind.
• You do not plan to claim for any dependents
• Interest income received by you in a tax year is less than $ 1,500
• You do not plan to claim any deductions or adjustments in your income.

Apart from the above mentioned criteria a taxpayer should also meet the following conditions in order to use form 1040EZ to his/her advantage:

• Your earning should only constitute of salaries, wages, tips, taxable scholarships, unemployment compensation or any qualified state program earnings.
• Any tips which you have earned must be reported in your Form W-2 by your employer.
• You should not have received any advance earned income credit payments.
• You do not owe any wages paid to your household employee.
• You do not wish to claim any additional deductions for real estate taxes, disaster losses or motor vehicle taxes.
• You should not be a debtor in a bankruptcy case.

In case you do not qualify under the above criteria it will always be beneficial for you to file either Form 1040 or Form 1040A instead of 1040EZ.

By: conor williamss

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