![]() ![]() This means that if you are eligible for a lot of deductions and credits on your taxes, like a mortgage deduction or education credits, for example, you'll be leaving money on the table if you file with a 1040EZ. If you satisfy these eligibility requirements, it’s important that you consider some of the disadvantages of filing your taxes on the 1040EZ, all of which can result in paying more income tax than you need to.įor example, the 1040EZ does not allow you to claim any deductions other than the standard deduction and personal exemptions, nor does it allow you to claim any credits other than the earned income tax credit. Lastly, taxpayers who are 65 and older or blind are also ineligible to use the 1040EZ form. Therefore, you cannot use the 1040EZ to file your tax return. For example, if you are married but choose to file a separate tax return from your spouse, your only filing status options are married filing separately, and in some cases, head of household. To satisfy the third requirement, you must also be eligible to file your tax return using the married filing jointly or single filing status. ![]() Otherwise, you must prepare your tax return on Form 1040, or if you're eligible, on Form 1040A. ![]() To use a 1040EZ, the taxable income you report can only come from employment wages, tips, taxable scholarships and grants, state unemployment compensation, Alaska Permanent Fund dividends and a maximum of $1,500 in taxable interest. ![]() Second, it matters where your income comes from. Even if you file a joint return with your spouse, your combined income must still be under the $100,000 threshold in order to file a 1040EZ form. Of the three options, the one-page Form 1040EZ requires the least amount of information, allowing you to complete it fairly quickly.īut before you start filling out a 1040EZ, you need to evaluate whether you satisfy four important eligibility criteria.įirst, your taxable income must be less than $100,000. If you are a citizen or resident of the United States, the Internal Revenue Service allows you to prepare your tax return using one of three standard forms. Hello, I'm Jill from TurboTax with some important information for all taxpayers. ![]()
0 Comments
Leave a Reply. |
AuthorWrite something about yourself. No need to be fancy, just an overview. ArchivesCategories |