Can You File Taxes Using The 1040EZ Form?

When it comes to preparing your taxes, you can save time, and sometimes money, if you can use form 1040EZ – sometimes called “the short form” - instead of form 1040.

As the name implies, it's a much shorter, easier form to fill out. If you are paying to have your taxes done, it will cost less if the preparer can use form 1040EZ.

According to the Internal Revenue Service, you can use form 1040EZ if:

• Your taxable income is below $100,000
• Your filing status is Single or Married Filing Jointly
• You and your spouse – if married -- are under age 65 and not blind
• You are not claiming any dependents
• Your interest income is $1,500 or less

If you qualify for the Earned Income Tax Credit (EIC), you can still use the short form under certain conditions. But If you have a qualifying child for the EIC, you must use Schedule EIC and Form 1040A or 1040 to do so.

Even though it may cost less to prepare the form 1040EZ, it might be to your financial benefit to use form 1040A or 1040 instead. For example, you can claim the head of household filing status, which usually results in a lower tax than single, only on Form 1040A or 1040. You can claim the retirement savings contributions credit only on Form 1040A or 1040.

Also, you can itemize deductions only on form 1040. You would benefit by itemizing if your itemized deductions total more than your standard deduction.

If you're in doubt, seek the advice of a qualified financial professional before filing your tax return.