What Is Form 1040EZ? A Step-By-Step Instruction Guide

KEY TAKEAWAYS

• Form 1040EZ was a simplified version of the standard 1040 form that most Americans use to file their taxes.
• It was for people with relatively simple tax situations, such as being single or married and filing jointly, have no dependents, and earn less than $100,000 per year.
• The form could be filed electronically or by paper.

What is Form 1040EZ?

Form 1040EZ was a simplified version of Form 1040. Both forms could be used to file taxes, but they were very different in scope and complexity.

What Is The Purpose Of Form 1040EZ?

The main purpose of Form 1040EZ was to assess tax liability. The form gathered information from you about your sources of income and deductions and calculated a taxable income amount for you. 

This taxable income was then compared to a standard tax rate to determine the amount you owed in income taxes. Form 1040EZ gathered information about your eligibility for certain credits and deductions. It then applied that information to help determine the amount of your refund.

Who Can File Form 1040EZ?

If you met the following criteria, you could file Form 1040EZ: 

• You had one job
• You did not receive any advance payments from your employer
• You had no dependents
• You were not eligible to claim any tax credits other than the Earned Income Credit (EIC).
• You and your spouse were under 65 years old at the end of the tax year

What Was The Eligibility Criteria For Form 1040EZ?

You must have met all of the following criteria for filing Form 1040EZ: 

• Your filing status is single or married and filing jointly
• You are not a resident of Puerto Rico (it has its own separate and independent tax system)
• You do not have to claim dependents on your federal income tax return
• No itemized deductions, and you are claiming standard deductions only
• You have no capital gains or losses from the sale of stocks, bonds, or other assets
• Your forms of income are wages, salaries and tips, pensions, and/or IRA distributions
• You did not receive any advance payments from your employer

How To File Form 1040EZ

You would have followed these steps for Form 1040EZ:

• Read through the form, gathered any information that you needed to complete the form, such as your employer’s name and address, and your form W-2
• Completed the identification and address information on the form
• Completed the income and deductions information on the form
• Completed the credits and other information on the form
• Signed and dated the form
• Mailed the form to the address listed on the form or file it electronically

How To Claim Credit On Form 1040EZ

If you qualifed for any credits on Form 1040EZ, you would see them listed on your form. As of the 2017 tax year, the only credit you could claim on Form 1040EZ was the Earned Income Credit (EIC). The following steps were used to claim a credit on Form 1040EZ: 

• Read through the income tax credits listed on your form
• Complete the information on your form as directed
• Sign and date the form
• Mail the form to the address listed on the form or file it electronically

How To Get Refund On Form 1040EZ

If you were due a refund, you would need to enter your information in the Payments section of the form. Once completed and signed the form, you would need to mail it to the IRS, and could expect to receive your refund within eight weeks.

Summary

Form 1040EZ was a tax form used by filers with very simple tax situations, but it is no longer in use. This form was used by filers who met all of the requirements. If you didn’t meet all the criteria, you would need to use a different tax form.

Written by Sandra Habiger, CPA

Sandra Habiger is a Chartered Professional Accountant with a Bachelor’s Degree in Business Administration from the University of Washington. Sandra’s areas of focus include advising real estate agents, brokers, and investors. She supports small businesses in growing to their first six figures and beyond. Alongside her accounting practice, Sandra is a Money and Life Coach for women in business.

Written by Sandra Habiger, CPA

Sandra Habiger is a Chartered Professional Accountant with a Bachelor’s Degree in Business Administration from the University of Washington. Sandra’s areas of focus include advising real estate agents, brokers, and investors. She supports small businesses in growing to their first six figures and beyond. Alongside her accounting practice, Sandra is a Money and Life Coach for women in business.