What is Form 1040EZ?
IRS Form 1040EZ: Income tax return for single and spouse taxfilers without dependents was the abridged version of the Internal Revenue Service (IRS) form 1040. This form was intended for taxpayers with basic tax situations and offered a quick and easy way to file tax returns. .
The form was abandoned as of the 2020 taxation year in favor of the revised 1040 form.
Anyone who has not filed an income tax return using Form 1040EZ for the 2020 and prior taxation years can still do so by visiting the IRS website.
Understanding the 1040EZ form
To use the form, a taxpayer had to have taxable income of less than $ 100,000, less than $ 1,500 in interest income, and not claim any dependents. Other requirements for filing Form 1040EZ included:
- The taxpayer and his spouse, if they were married in common, must have been under the age of 65 at the end of the relevant production period
- He could not be blind at the end of the relevant filing period
- The notifier could not take any deduction for interest on student loans, educator expenses, tuition and fees and / or itemized deductions
- If the declarant received interest income, he could not have been required to file Annex B, he did not have amounts in boxes 11, 12 or 13 of form 1099-INT or in boxes 6 and 10 of Form 1099-OID, and did not earn interest as a candidate
- Tax credits for retirement savings, health coverage and education were not allowed
- The declarant could not have received any credit for income earned in advance (EIC), although he would have been authorized to request the EIC when filing Form 1040EZ
- The notifier could not be a debtor in a Chapter 11 bankruptcy case filed after October 16, 2005.
- The declarant, his spouse, if he is married, jointly produced, or one of his dependents for whom he claimed the personal exemption did not receive any advance payment of the premium tax credit offered for health insurance plans sold on the marketplace.
- The declarant is not liable for any tax on the wages of domestic workers
For most individuals, the 1040EZ was the first tax form they ever filled out. Consider a typical high school student employed part-time. Provided they meet the income criteria, the 1040EZ will likely be the simplest and most suitable form to file.
Key points to remember
- Form 1040EZ was an abridged version of Form 1040 for taxpayers with basic tax situations.
- The form was discontinued as of the 2020 taxation year and replaced by the redesigned Form 1040.
Form 1040EZ versus form 1040
Form 1040EZ had only a few credits or deductions available to taxpayers. Reporters were able to include a earned income credit (EIC) and choose a non-taxable combat pay.
For most taxation years, Form 1040 had 80% more lines than Form 1040EZ. A significant difference was that Form 1040 had fields to include information about dependents, while 1040EZ did not allow individuals to claim dependents. Similar to the standard form, the EZ version had sections for recording wages, salaries and tips, and taxable interest of less than $ 1,500. The declarant was also able to include unemployment benefits.
Form 1040EZ allowed declarants to claim income from wages, tips, wages, taxable grants or scholarships, the Alaska Permanent Fund and unemployment benefits. Form 1040, however, had at least 16 categories of income. The categories available on the standard form included dividend payments, retirement account distributions, and farm and rental income. Form 1040 also authorized the attachment of social security benefits, alimony and other forms of income. The form also included a long list of deductions, ranging from education fees to contributions to the health savings plan.