Taxpayers who are single or married and filing jointly can use IRS Form 1040EZ, subject to certain restrictions. These taxpayers cannot have any dependents, and the only tax credit they can claim is the earned income credit.
Both age and disability factor in to who can use Form 1040EZ. Neither taxpayers who are 65 or older on the last day of the tax year, nor those who were blind on the last day of the tax year, can use this form.
There are also income restrictions for using Form 1040EZ. Taxable income must be less than $100,000, and this income must be derived from salaries, wages and tips. Additionally, tips must be listed in boxes five and seven on the taxpayer’s W-2. Taxpayers cannot have taxable interest that exceeds $1,500. Students who receive income from taxable scholarships and fellowships can also use Form 1040EZ, as can individuals who receive unemployment payments. Alaskans who receive dividends from the Alaska Permanent Fund can also use this form.
Form 1040EZ tax filers cannot have any income adjustments, and they cannot be under a Chapter 11 bankruptcy case filed after October 16, 2005. They also cannot owe FICA or any other payroll taxes on wages that were paid to their domestic employees. By using this form, tax filers certify that no advance premium tax credit payments were made for them or those individuals they enrolled in coverage.