1040EZ and other 1040 tax forms: The difference.

Tax forms are used while paying taxes to the Internal Revenue Service (IRS). The three tax forms which are mainly used by individuals are 1040, 1040A and 1040EZ. It’s important to understand the difference between them as each form calls for a different criterion. Amongst them, the 1040EZ is the shortest and simplest to use. However, the types of forms which you can use don’t depend upon your discretion. Given below are the 3 factors on which differences are made between the tax forms:

A.) Income:-

1.) 1040 EZ - When your total income is below $10,000 and your sources of income are wages, interests, unemployment compensations and Alaska Permanent Fund dividends. You should not have any dependents.

2.) 1040A - In this case, your income should also be under $10,000 but your sources of income should be wages, interest, dividends, capital gain distributions, IRA or pension distributions, unemployment compensation, scholarships, grants, Social Security benefits and Alaska Permanent Fund dividends.

3.) 1040 - For using this tax form, your income should be 10,000 or more, and the sources of income must be business, trust, partnership, rental, S-corporation or farm. It can also be used when you have foreign wages, or you have sold stocks, bonds, mutual funds, or property.

B.) Claims:

1.) 1040 EZ - When you do not have any adjustment to income and you are claiming only standard deduction. You can use this form when you are not claiming any other tax credits but only Earned Income Credit.

2.) 1040A - When adjustments to income such as education loan interest, IRA contributions, penalty for early withdrawal of savings, and jury duty pay given to your employer are claimed. It is also applicable when the following tax credits are claimed: education credit, child tax credit, child and dependent care credit, earned income credit, elderly and disabled and retirement savings contributions credit.

3.) 1040 - It can be used when you are claiming tax treaty benefits and the following adjustments to income: tuitions and other education expenses, and also health savings accounts.

C.) Age:

1.) 1040 EZ - It can be used if you are below 65 years.

2.) 1040A - Individuals of any age can use this form.

3.) 1040 - Individuals of any age can use this form.

Thus to avoid any mistake, the conditions given above should be kept in mind while choosing a tax form varying between 1040, 1040A and 1040EZ.

What Filing Status Can You Use For Filing Federal 1040ez?

Single Filing:

Use this filing status if any of the following was true on December 31, 2011.

• You never were married.
• You were legally separated, according to your state law, under a verdict of divorce or separate maintenance.
• You were widowed before January 1, 2011, and did not remarry in 2011.

Married Filing Jointly:

Use this filing status if any of the following apply.

• You were married at the end of 2011, even if you did not live with your spouse at the end of 2011.
• Your spouse died in 2011 and you did not remarry in 2011.
• You were married at the end of 2011, and your spouse died in 2012 before filing a 2011 return.

For federal tax purpose, a marriage means only a legal blending between a man and a woman as husband and wife, and the word spouse means a person of the opposite sex who is a husband or a wife. A husband and wife filing jointly report their joint income and deduct their combined acceptable expenses on one tax return. A husband and wife can file a joint tax return even if only one had income or if they did not live together all year. However, both persons must sign the return. Once you file a joint return, you cannot select to file separate returns for that year after the due date of the return.

Combined and more than a few tax liabilities. If you file a joint tax return, both you and your spouse are normally liable for the tax and interest or penalties due on the tax return. This means that if one spouse does not pay the tax due, the other may have to. Or, if one spouse does not report the correct tax, both spouses may be responsible for any extra taxes assessed by the IRS.

You may want to file separately if:

You believe your partner is not reporting all of his or her income, or

You do not want to be liable for any taxes due if your partner does not have sufficient tax withheld or does not pay enough estimated tax.

If you want to file separately, you must use Form 1040 or 1040A. You cannot use Form 1040EZ.

Federal 1040ez; What's New in 2011 Tax Season.

Future Developments: For information about any additional changes to the 2011 tax law or any other developments affecting Form 1040EZ or its instructions, go to www.irs.gov.

Due date of Tax Return: File Form 1040EZ by April 17, 2012. The due date is April 17, instead of April 15, because April 15 is a Sunday and April 16 is the Emancipation Day holiday in the District of Columbia.

Earned Income Credit (EIC): You may be able to take the EIC if you earned less than $13,660 ($18,740 if married filing jointly). See the instructions for lines 9a and 9b.

Foreign Financial Assets: If you had foreign financial assets in 2011, you may have to file new Form 8938 with your return. If you have to file Form 8938, you must use Form 1040. You cannot use Form 1040EZ.

Expired Tax Benefit: The making work pay credit has expired. You cannot claim it on your 2011 return.

Mailing Your Tax Return: If you are filing a paper return, you may be mailing it to a different address this year because the IRS has changed the filing location for several areas.

Source: IRS.GOV

File 1040ez Federal Tax Return Online For Free!

If you really wish for availing of the benefits of preparing and filing free federal 1040ez taxes, you should check out for the qualifying requirements for the Free File program offered by the IRS in collaboration with other private tax preparation software firms. For detailed information on this free filing program, you can check the IRS website at irs.gov right away and get to know all the details yourself as to how you can prepare and electronically file your federal tax return for free.

There is a qualifying requirement for Free File program which requires you having your adjusted gross income not more than $57,000 in 2011. The complete information and the necessary details are provided at the IRS website which you can go through. If you what to have a company that can prepare your federal income tax return, then you need to choose from the two possible options available namely “Help Me Find a Company” and “I Will Choose a Company”. If you opt for the first option, you will get some filtered resulted according to your age, location, AGI and your filing status whether it is joint or single.

It is quite easy to choose a company and once you’ve made your choice, you will be redirected to the company’s website leaving the IRS website. In other words, these tax preparation companies work separately from the IRS. You may not find all companies supporting all the forms and schedules for participating in Free File program and therefore, it will be wise on your part to get to know more about the company’s website and what sorts of forms they offer. Please remember that the option you choose need to be more convenient to you in all aspects to make your task faster and easier.

You can make use of the top search engines to find out the most reliable tax preparation companies available these days. It will be much easier than ever if you opt for doing your taxes on the internet using software program. Please remember that you do not necessarily require purchasing software for e-filing your income tax return. You may find the alternative which offers you free version to do filing of tax return electronically on your own way. If you are in habit of doing taxes on your own way, then there is nothing like confusions or difficulties for preparing and e-fling of your taxes. You can right away start doing free federal tax in your own way without encountering difficulties that you think to be.

What Do You Know About Free Federal 1040ez Tax Form?

Before you fine any tax form online, you should know clearly about the importance of it. And, it is also important to know whether you qualify for the tax form or not. Suppose you are young or retired person, you can benefit from filing the most simple income tax form like Free Federal 1040ez tax form. It is the easiest tax form for individual because it requires reporting the simplest things. You can checkout whether you are eligible or not for using this income tax form.

Suppose you are a young person with one job and few expenses, then this form will be a good option for you. Suppose you are a retired person and you do not have lots of medical expenses, then you can benefit from using Free 1040a form on your own. Since it is very simple and least complicated individual tax form, the majority of the people make use of this form.

If you do not have many deductions and have simple claim to file, then using 1040ez form will be perfect option for you. This form will make it easy for filing your tax return online if you have simple taxes to do. You can do filing of the tax form 1040ez online on your own and become worry-free. If you feel confusion regarding this tax form, you can visit the IRS website at irs.gov and get to more about this IRS 1040ez tax form.

So, when it comes to filing your federal income tax return online, you need to understand your taxes. If you have your W-2 form, then filing IRS 1040ez will be an easiest option for you to file your individual tax return online. If you prefer the easier form like 1040ez form online, it will become pretty easier for you to do your taxes on your own. You can visit federal1040ez.com to know more about this tax form.

Form 1040ez – Getting to Know More about 1040ez Tax Forms

When it comes to paying your taxes, you need to have clear understanding about your tax situations so that you can easily choose tax forms and the method of filing your return. If you have simple tax return, you may consider opting for 1040ez tax form. However, there are certain things which you should know for using this form.

You should know that Tax Forms 1040ez is perfect for those individuals who meet certain criterion. If you and your spouse meet certain conditions, then only you are eligible for using this simplified version of tax form 1040 income tax often known as 1040 EZ. You will save your time and your money if you are eligible for tax form 1040ez.

To qualify for this form 1040ez, your taxable income should not be higher than $100,000. Your interest income should be less than $1,500. You and your spouse should be below 65 years old. You are not supposed to have adjustments to income. Please note that you can claim only standard deductions and not more than that. You are not supposed to claim any other tax credits. These are general considerations for using this form which you should remember while opting for it.

After the completion of your tax return, you have one thing to do and that is to sending it to the IRS service center. You have two options to send your form to the IRS; you can mail your Form 1040-EZ to the IRS or you can electronically file your return. It is quick and easy to file your return electronically and your file will get processed quickly.

If you wish to learn more about filing 1040ez Tax Forms, you may visit federal1040ez.com site. Federal Tax 1040ez will familiarize you with this form and how to file it conveniently online.