1040EZ Tax Form

The 1040EZ tax form is a simplified method of reporting income on an annual basis to the United States Internal Revenue Service (IRS). A 1040EZ carries the same restrictions for use as an IRS Form 1040A. In addition to the restrictions of the 1040A, the 1040EZ is further restricted to be used by only those individuals with no dependents.http://www.irs.gov/pub/irs-pdf/i1040ez.pdf

The 1040EZ tax form is a single page form that uses the Form W-2 as the basis for most of the information. Individuals whose income is reported on a form other than a W-2 cannot use Form 1040EZ. There are additional qualifications for the 1040EZ that may or may not allow a person to use it.http://www.irs.gov/newsroom/article/0,,id=105099,00.html 

Use the 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 lesshttp://www.irs.gov/newsroom/article/0,,id=105099,00.html 

Because the 1040EZ is a simplified form, many credits or deductions which can be claimed on other tax forms cannot be claimed when using the 1040EZ. There are only two credits which are allowable on the 1040EZ. These two allowable credits are the Earned Income Credit and the Making Work Pay Credit.

The Earned Income Credit is a credit targeted at low income earners which reduces or eliminates the tax owed. In some cases, the Earned Income Credit can result in a refund beyond what was paid in as taxes during the year. The income threshold to claim the credit changes each tax year. In order to qualify for this credit, individuals who use the 1040EZ must be between the age of 25 and 65.http://turbotax.intuit.com/tax-tools/tax-tips/deductions-and-credits/5515.html

The Making Work Pay Credit was established by the 2009 Economic Stimulus Bill and expires at the end of 2010. Without an extension to the bill, this credit will not apply in the 2011 tax year. Many taxpayers already receive this credit as a small increase in their regular paycheck.  For those individuals who did not have taxes withheld during the year or did not receive a one-time payment of the credit, the 1040EZ may allow for this credit to be claimed when filing the tax return.http://blog.turbotax.intuit.com/deductions-and-credits/take-advantage-of-these-tax-credits-before-its-too-late/