Who can use Form 1040ez

Even if you can use Form 1040ez, it may benefit you to use Form 1040a or 1040 instead. For example, you can claim the head of household filing status (unmarried with dependent) only on 1040a or 1040. Also you can itemize your deductions only on Form 1040.

You can use Form 1040ez if all of the following apply.

1. Your filing status is single or married.

2. You do not claim any dependents.

3. You claim the standard deduction.

For 2005 the standard deduction for single is $5,000 and for married filing jointly it is $10,000.

4. The only tax credit you can claim is the earned income tax credit.

For 2005, the maximum earnings allowed for filing single is $11,750, and for filing married joint is $13,750. The tax program will automatically calculate your earned income tax credit based on your income.

5. You only had income from the following sources:

Wages, salaries, tips.
Interest and ordinary dividends less than $1500. If you have more than $1,500 in interest and dividends, then you must use Form 1040a or 1040.
Taxable scholarship and fellowship grants.
Unemployment compensation.
Alaska Permanent Fund dividends.

6. You do not claim any adjustments to income.

Adjustments to income reduce your tax; some examples are IRAs, student loan interest, tuition and fees expense, and educator expenses.

7. Your taxable income is less than $100,000.

8. You (and your spouse) were under the age of 65 and not blind.

Note: When you must file Form 1040

As per IRS regulations, if you received any of the following types of income you must file Form 1040.

Income from self-employment (1099 misc, business or farm income).
Certain tips you did not report to your employer. (W-2 box 8)
Nondividend distributions (Form 1099-DIV, box 3) required to be reported as capital gains.
Income received as a partner in a partnership, shareholder in an S corporation, or a beneficiary of an estate or trust (Schedule K-1).

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