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What situation would cause a person to use a 1040EZ form?

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Quick Answer

A person can use a 1040EZ form if he is single or married filing jointly, has no dependents and is under the age of 65, Investopedia reports. The taxpayer's taxable income must be less than $100,000 to use a 1040EZ form. If a taxpayer is in Chapter 11 bankruptcy, he cannot use 1040EZ, even if he meets the other qualify criteria.

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Full Answer

Additionally, the taxpayer cannot owe taxes on the employment of a household employee if he wishes to use a 1040EZ return, Investopedia says. A big hurdle to overcome when using 1040EZ for tax returns is that the filer cannot claim income adjustments, including any type of deduction for retirement contributions on student loan interest deductions or any other credit. The only two credits a taxpayer can take when filing a 1050EZ is the earned income credit or the making work tax pay credit, TurboTax says.

Form 1040EZ has four different components. The first component requires personal information, such as the taxpayer's name and address, and the next two sections report wages, income and tax payments made throughout the tax reporting year. The last section is the worksheet that allows the taxpayer to calculate the refund the IRS owes him or the amount of taxes he owes to the IRS. There is no section for itemized deductions or tax credit listings.

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