When deciding on which 2009 individual income tax return to file there are three basic IRS tax forms that need to be considered. The three basic IRS tax forms are (1) Form 1040EZ, (2) Form1040A or (3) Form1040. This article will focus in on Form 1040 EZ, which is the shortest form and by far the least complex of all the forms.
The Form 1040EZ was designed to be very simple, and therefore is designed to exclude many typical adjustments to income. However, even if you can use Form 1040 EZ, it may be of greater benefit to you to consider itemizing your tax deductions by using Form 1040. You would be able to benefit by itemizing if your itemized deductions exceed the standard deductions. The standard deduction is $5,700 for most single people and $11,400 for most married people filing a joint return.
Checklist for Using Form 1040EZ
You can use Form 1040EZ if all the items in this checklist apply.
* Your filing status is single or married filing jointly. If you were a nonresident alien at any time in 2010.
* You do not claim any dependents.
* You do not claim any adjustments to income.
* You claim only the earned income credit and the making work pay credit.
* You (and your spouse if filing a joint return) were under age 65 and not blind at the end of 2010. If you were born on January 1, 1946, you are considered to be age 65 at the end of 2010 and cannot use Form 1040EZ.
* Your taxable income (line 6 of Form 1040EZ) is less than $100,000.
* You had only wages, salaries, tips, taxable scholarship or fellowship grants, unemployment compensation, or Alaska Permanent Fund dividends, and your taxable interest was not over $1,500.
* You did not receive any advance earned income credit payments.
* You do not owe any household employment taxes on wages you paid to a household employee.
* You are not a debtor in a chapter 11 bankruptcy case filed after October 16, 2005.
* You do not figure your standard deduction using Schedule L.
Source: IRS.GOV
The Form 1040EZ was designed to be very simple, and therefore is designed to exclude many typical adjustments to income. However, even if you can use Form 1040 EZ, it may be of greater benefit to you to consider itemizing your tax deductions by using Form 1040. You would be able to benefit by itemizing if your itemized deductions exceed the standard deductions. The standard deduction is $5,700 for most single people and $11,400 for most married people filing a joint return.
Checklist for Using Form 1040EZ
You can use Form 1040EZ if all the items in this checklist apply.
* Your filing status is single or married filing jointly. If you were a nonresident alien at any time in 2010.
* You do not claim any dependents.
* You do not claim any adjustments to income.
* You claim only the earned income credit and the making work pay credit.
* You (and your spouse if filing a joint return) were under age 65 and not blind at the end of 2010. If you were born on January 1, 1946, you are considered to be age 65 at the end of 2010 and cannot use Form 1040EZ.
* Your taxable income (line 6 of Form 1040EZ) is less than $100,000.
* You had only wages, salaries, tips, taxable scholarship or fellowship grants, unemployment compensation, or Alaska Permanent Fund dividends, and your taxable interest was not over $1,500.
* You did not receive any advance earned income credit payments.
* You do not owe any household employment taxes on wages you paid to a household employee.
* You are not a debtor in a chapter 11 bankruptcy case filed after October 16, 2005.
* You do not figure your standard deduction using Schedule L.
Source: IRS.GOV