The tax season is coming. Whether you have begun preparing or still thinking there is enough time, you have to know about the various kinds of form. These forms play a crucial role in filing taxes — one of those primary forms in 1040ez Form. So, in today’s blog, we are going to talk about it. We are sure; it will help you in understanding about the taxes in a better way. Let’s get started.
Why is 1040ez Form important?
When you are filing taxes, everyone forms become essential. Here the way 1040 EZ is critical because it is an income tax form. If your income is less than $100,000. Do not claim any dependents. You single or married, then you may be eligible to fill the form 1040 EZ. There are four sections in this one-page form which you need to complete. You can use a tax calculator as well to fill the form online. Those four sections are.
> Personal Information
> Source of income
>Payments, tax and Credits
> The Tax Refund
If you have filed tax forms before, then you already know what the procedure here is. However, if you have not, then read it carefully. You will provide the necessary information about you. Your name, your address and your social security number. There are other details to fill which will be mentioned on the form. As we have told you before, you won’t be able to claim any dependents. So, we move on to the next section.
What are your sources of income on the 1040ez Form
Here what incomes you can mention are restricted to. You can mention Salaries, tips, wages and taxable interest on the form 1040 EZ. If you have streams of income more than this, then you have to attach other forms such as Form 1040 or 1040A to mention those incomes for tax filing.
After you have mentioned the income streams, you need to calculate the standard deduction. If you are finding it too complicated, use a tax calculator for it.it will become easy to do it.
Payments, Tax and Credits | 1040ez Form
Now, we come to the third section of the form. It is related to Payments, Tax and credits. Here you have to give a list of all the payments or estimated. Your employer may hand you a W-2 Form, in case it is holding federal tax.
In case you are eligible for an income credit, then you have to mention it here. In the tax section, you can specify the taxable income.
The Tax Refunds
In the last, you can mention the total amount you have to pay and the taxes. If the taxes are exceeding, then you will be entitled to a tax refund.
So, this was a definitive guide to the IRS 1040EZ form. If you think we have left anything, do let us know.