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When to Use the 1040EZ

July 8th, 2007

Of all the tax forms available the easiest to fill out by far is the form 1040EZ. That’s why it is called the 1040A EZ, or in other words the 1040 easy! If you meet the following conditions then you are able to use the 1040 EZ and enjoy the simplicity of filing your taxes.

The first condition is that you are either married filing jointly or you are filing single. You also may not claim any dependents in order to file form 1040EZ. If a joint return is being filed by you and your spouse then neither one of you may have been blind at the end of the year or under the age of 65 on January 1. Only wages, tips, salaries, fellowships grants and scholarships that are taxable, tuition program earnings, unemployment compensation, as well as $1,500 or less of taxable interest are allowed to file the 1040A.

Another condition that must be met in order to use the 1040 EZ to file your taxes is that your taxable income was no more than $100,000. No advance income credit payment are allowed if you wish to file this particular from and there may not be any taxes owed on household employee wages. To file this form you may not have any student loan interest deductions, deductions for fees or tuition, or an education deduction expense. No education credit claim, health coverage tax credit, or retirement savings contributions credit are allowed to file this particular tax form.

When you use the form 1040EZ you will not be able to claim adjustments to income, itemize deductions, or adjust tax credits other than the earned income credit if you qualified. For those of you who do not meet all of the criteria of the 1040EZ you may qualify for the 1040A.

Those who qualify for the form 1040A then you only report income from tips, wages, salaries, interest, capital gain distributions, ordinary dividends, annuities, pensions, taxable social security, IRAs, unemployment compensation, and others. Your taxable income must be no more than $100,000 and you may not itemize deductions. The only income adjustments allowed are the student loan interest deduction, IRA deduction, educator expenses, and fees and tuition deduction. These are the basics when it comes to the forms 1040EZ and 1040A. As long as you read, follow instructions, and file the correct form you will have no problems with your taxes or the IRS.

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