There are many people who are fearful to gaze at their finances. Unless you identify precisely how much you are financially, there’re little chances you can initiate arranging financially for your good future. The preferences made by you today are truly going to make a strong impact on your financial stability in the future. You can do a favor by utilizing a good free tax refund estimator to get an assessment of your finances. It may seem to be somewhat difficult, but it’s very important. A solid savings can help build up your current financial status. There are sufficient tax return calculators online, and you can easily establish how much you’re going to save so that you can make balanced selections for the future. There are many good websites that are committed to estimate and accurately calculate tax refund information. Most usually, they will offer a tax refund calculator that can be used without any extra charges. Many tax refund preparation websites also tender the income tax refund estimator to users almost free of charge.
What Is A 1040 Tax Form
In the US, the form 1040 is widely used to file individual Income Tax Return with IRS (Internal Revenue Board). You can even select the form 1040A or form 1040ez if your position is upfront. Prior to filing tax return, most people would like to locate where they stand, and how much funds they owe. In case, more exemptions have been taken in a year, then you will have to make payment at the end of the financial year.
Choosing the right 1040 tax form so as to file the return can be somewhat difficult to work out. The best way is to utilize the 1040ez Calculator, and you can make the right decision in filing tax return. The 1040ez is the simplest form to fill out, and less complicated than the full 1040 form.
Who is eligible to File Form 1040ez
Form 1040ez has been specially designed for the easiest returns. However, you have to meet certain requirements. This form is only available for filing category of single or married individuals. Those individuals who have a number of dependents to make claim can’t utilize the form. All the taxpayers have to be below 65 years of age, and also not entitled for standard deductions for the blind. There are some income-related restrictions, and you can’t have more income than $100,000 in taxable returns. The income can only originate from salaries, wages, unemployment compensation and fellowship grants. Only taxable interest less than $1,500 is permissible. Further, those individuals who get advance payments of premium tax credits are not entitled to file Form 1040ez. In the event you don’t qualify for Form 1040A or 1040ez, then the only alternative is the Form 1040.
What Tax Form Do I Use
Once you search out the IRS website to file your tax return, you can find so many options for forms. It may seem somewhat difficult to figure out which one is the correct to use.
1040ez Tax Estimator
Types of Federal Income Tax Forms
Form 1040(U.S. Individual Income Tax Return)
The huge majority of taxpayers must choose between either filing a form 1040 or a form 1040ez. If you arrange to itemize your deductions, then you should file form 1040. In case, the deductions are more than the standard deduction, you’ll have to itemize them. Extra standard deductions are available for the taxpayers above age 65 and the blind.
This form is precisely as advertised and easy to fill. You can file a Form 1040ez in case you are single or married, and with no dependents. In case, you have dependents or filing as head of household, married or widower filing separately, you are not eligible to use the form 1040ez. The Form 1040ez is particularly for individuals who meet up the required criteria.
The best way to file the Form 1040ez is to get your 1099s, 1099-G, 1099-INT and W-2s statements jointly. You can have a copy of the instructions, as this form is easiest to fill out. The instructions will let you know where to write down your name, address, and social security number. Just the once you have finished, double check your particulars i.e. name, address, and social security number, and ensure all of them are correct.
The two types of filing status are Single or Married filing together. Tax filing form varies on your tax filing category. There are five types of accessible tax filing categories for this calculation. Pick the most suitable one for you.
This is regarding your support for someone and you can positively claim a dependency exemption for such support. For tax filing, you are required to specify the category for you & your spouse.
Since unemployment compensation is a kind of taxable income, you are required to consider it for tax calculation.
Fill any taxable interest income amount that you might have received.
It is the amount which you can withhold from the income previous to taxes gets paid. This amount may vary as a result with your filing category.
It is the complete or total income which is decided by deducting the standard deduction and exemption deductions from the total income.
Earned income credit
The 1040ez calculator will find out the tax amount if you are entitled for earned income credit (EIC) [EIC Calculator] not including penal income, retirement income and scholarships.
Federal income tax withheld
To find out your reimbursed tax payment amount, you should reveal your anticipated income to have withheld or deducted from the annual tax payment. [Tax Withholding Calculator]
How to Fill Out a US 1040ez Tax Return
Enter your correct address into the address section at the top of the form. Take account of your correct name, address, and Social Security Number. If the tax return is being filed by you or your spouse, adding your spouse denotes you are filing Married Filing Jointly. Complete the boxes for your spouse’s name and SSN. You are not eligible to file if you come in the category – Married Filing Separately, Qualifying Widow or Widower, and Head of Household. Enter your gross salary, wages and grants. Correctly fill your taxable interest, if any. These amounts may have been disclosed to you on forms 1099-INT or 1099-OID. Enter your unemployment compensation. In case, you got unemployment benefits, you must have received Form 1099-G. Confirm your personal exemption. If you are not declared as a dependent, simply follow the instructions and enter your filing category i.e. single or married filing together. Fill your Federal Income Tax Withheld. For this, make a look at the forms W-2, 1099-G, 1099-INT, and 1099-OID. Fill the total from the EIC. There should comply with ‘earned income tax credit table’ included in the 1040ez instructions. Complete the health care line, and if you do not have any particular health care coverage, fill it out using the instructions mentioned in Form 8965. Calculate tax return and find out the refund. It includes how much tax you’ve already paid, and the money the government owes you. If you are filing together, and you want the refund should split, just include a form 8888 with the return. This indicates your different account numbers, and how much amount is to be transferred into each account. Sign the signature line, including the date and your profession. The entry of phone number is discretionary, but it can help speed up the processing time.