The Differences Between Major IRS Tax Forms

Employers who withheld income taxes, Social Security tax or Medicare tax from their employees’ paychecks need to file the Employer’s Quarterly Federal Tax Return. This is used to properly assess the employers’ tax portion of these paid expenses. You will need to provide your personal information, such as your name, address, and Social Security Number, as well as details about your income and tax credits. Ensure you have your W-2 forms and other necessary documents before you start. Financial news sources such as CNBC, Bloomberg, and The Wall Street Journal frequently report on tax law changes and their potential impact on taxpayers.

Subtract the sum of Lines 7 and 8a from Line 10 and enter the difference on Line 12. The new 1040 form is intended to be used by all individual taxpayers and can be supplemented with additional schedules if needed for more complex tax situations. For many individuals, tax season can be an incredibly overwhelming time. To save yourself the hassle of filing Form 1040EZ, get a free consultation from one of our trusted Community Tax agents and learn how our services can make your tax season stress-free. If you are still unsure about what tax return form is right for you, do not hesitate to contact us.

Payments, credits, and tax

Or you can get your taxes done right, with experts by your side with TurboTax Live Assisted. Just answer simple questions, and we’ll guide you through filing your taxes with confidence. Form 1040-SR also has no income limit, unlike the 1040EZ form, which was limited to individuals or joint filers who earned $100,000 or less with under $1,500 in interest income. Form 1040EZ is no longer used, but Form 1040 and Form 1040-SR are important for taxpayers to be familiar with.

  • Page 2 is also where you claim tax credits and list the tax payments you’ve already made for the year.
  • The deadline for amending your tax return is typically within three years of filing your original return or within two years of the date you paid the tax, whichever is later.
  • When you are ready, you can submit Form 1040EZ online via the IRS site yourself or have a tax professional help you with electronic filing.
  • This is necessary whenever permission is given to generate a filing PIN or transmit IRS tax forms electronically.
  • On-Line 2, enter any taxable interest income reported on your 1099-INT form.
  • The forms also report the period of the coverage, whether the entire year or only certain months.

Taxes can be complex – especially figuring out the difference between major IRS forms. Whether you are filing previous years tax returns using the old 1040 forms, or the new 1040 form, we can help you along the process. It is important to note that filing a form that’s too simple for your tax situation may cause you to forfeit credits and deductions you’re entitled to, so be sure to select a reputable tax preparer. Form used to accompany individual estimated tax payments made to the IRS. Depending upon the amount own the prior years tax return, estimated payments may be a requirement for the individual.

Eligibility for Form 1040EZ

The 1040EZ form was a simplified version of the IRS 1040 form used to file individual federal income tax returns. The “EZ” in 1040EZ stood for “easy” because it was designed to simplify the process of filing a tax return for taxpayers with straightforward financial situations. Individual Income Tax Return, is the only form used for personal (individual) federal income tax returns filed with the IRS.

Form 1040ez Definition

You don’t have to worry about which tax form to use if you use tax software to prepare your returns. The software will automatically select the appropriate form based on your income and deductions. This section is where you add any payments you have made by paying Federal taxes.

No one offers more ways to get tax help than H&R Block.

If you would like more in-depth information and what you can and can’t claim on each of these forms, as well as information on the 1040a form, click here. M​embers of the Kentucky National Guard may claim a tax credit of $20; military reserve members are not eligible. Ask a question about your financial situation providing as much detail as possible. Your information is kept secure and not shared unless you specify. Our mission is to empower readers with the most factual and reliable financial information possible to help them make informed decisions for their individual needs.

Our work has been directly cited by organizations including Entrepreneur, Business Insider, Investopedia, Forbes, CNBC, and many others. We follow strict ethical journalism practices, which includes presenting unbiased information and citing reliable, attributed resources. Finance Strategists is a leading financial literacy non-profit organization priding itself on providing accurate and reliable financial information to millions of readers each year. Our team of reviewers are established professionals with decades of experience in areas of personal finance and hold many advanced degrees and certifications. At Finance Strategists, we partner with financial experts to ensure the accuracy of our financial content. However, as of the 2018 tax year, the IRS discontinued the 1040EZ Form and replaced it with a redesigned 1040 form.

Best Tax Software for July 2023

For most individuals, the 1040EZ was the first tax form they ever completed. Provided they met the income qualifications, the 1040EZ will likely be the most straightforward and appropriate form to file. As for reporting the income, the State of Alabama tax form does require disclosure of the payments, but they should be qualified as scholarship/fellowship payments. The graphic below shows the line on which the payments should be reported (Part IV, line 6). The final section to the 1040 EZ is where you calculate your refund.

Form 1040ez Definition

This form is used by employees to let their employer know how much income tax should be withheld from their paycheck each pay period. Employees must fill out a W-4 form to initiate tax withholding or to change the amount of pay they want withheld each period. Employees indicate the amount they withheld by stating their tax exemptions, a dollar amount they want withheld or a combination of the two. If you don’t feel comfortable filing on your own, several agencies will fill out the forms and file them for you.

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When you itemize deductions on your federal return you are allowed to deduct state income taxes or sales taxes that you paid during the year. If any part of the state income tax you deducted on your federal return is later refunded to you that amount must be reported as taxable income for the year in which the refund is issued. Reports information such as income, deductions, liabilities, gains, losses, employment taxes and other data for the estate or trust. Must be used if the gross income is $600 or greater or if it has any taxable income, even if it is less than $600. Also, it must be used if a non-resident alien is the designated beneficiary.

The information requirement, complexity, and eligibility of taxpayers in each form are different from one another. The key differences between IRS 1040, 1040A and 1040EZ are as follows. IRS 1040EZ is the shortest form that can be used to file taxes and is quite straightforward and easy to fill. All three forms require general information such as the name, address and Social Security Number (SSN) of the taxpayer. The issuance or non-issuance of an informational return is not determinative of the tax treatment required of the payee.

Refund Processing Times

You will need to provide information such as the name of your employer, your Social Security number, your contact information and other facts that the IRS requests. Note that if you do not receive your form, you are not exempted from filing a tax return for the year in question. An individual taxpayer can either use the standard deduction or itemize deductions. Expenses qualifying as itemized deductions include unreimbursed medical and dental expenses, mortgage interest, state and local taxes paid, and charitable donations. Used to calculate and claim the American Opportunity and Lifetime Learning tax credits for qualified education expenses. The attending college/university should send a 1098-T each year to anyone who pays tuition; this can be used to complete the 8863 accurately.

  • Read on for the information you need for a stress-free tax filing.
  • Starting in 2009, all Forms 5500 must be filed electronically on the website of the Department of Labor.
  • You can e-file your return using IRS Free File if your adjusted gross income is $66,000 or less.
  • When filling out a Form W-4 an employee calculates the number of Form W-4 allowances to claim based on his or her expected tax filing situation for the year.

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