Form 1040EZ is just one of many IRS forms you may come across. It’s a type of statement designed to report how much you’ve earned to the IRS. If this form is brand new to you, we are going to introduce you to the main facts.
The Simplest Form
This is the easiest and fastest form to file with. It’s one of three income statements you can use to submit your income. You can only include salary, taxable interest, tips, and wages on this form. If you have anything else and you will have to use a different form.
Payments and Credits
The next section involves you looking into whether you are claiming working tax credits, or any other benefits. You will write down anything that’s withheld and combine it with the W-2 form you should have received. This information is used to calculate whether you are entitled to a tax refund or not. However, keep in mind that this form has limits regarding the type of credits that you can claim.
The Signature
It’s alarming how many tax returns are sent to the IRS without being signed. It’s vital that you sign it because if you don’t the form is considered invalid. If you’re filing jointly, your spouse must sign the form as well.
Do You Need a Tax Preparer?
Despite this being the simplest form, it’s still a complex document and can be difficult to fill out correctly, especially if you have minimal experience. It’s always worth consulting with a tax professional to receive a level of help proportionate to your current tax situation.
Spend your time researching various tax professionals in your area to see which one is best for you.
Image credit: David Besnette