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What is tax form 540 2EZ?

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Quick Answer

The 540 2EZ form is a California state tax form used to file state taxes, according to the Internal Revenue Service. It is the simplest version of the 540 form, but only certain people qualify to use the form.

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Full Answer

The Form 240 2EZ form is for California residents that are the head of household, filing married jointly, a qualifying widow or a single individual with no more than three dependents, according to the IRS. The taxpayer must also have taxable income that is $100,000 or less if he is filing as single or as head of household, or $200,000 or less if the taxpayer is filing married jointly or as a qualifying widow. The income must only be from wages, salaries and tips, taxable interest, pensions, unemployment, paid family leave insurance, fellowship grants and taxable scholarship, or capital gains from mutual funds.

To use this form, the taxpayer uses only the standard deduction and has no adjustments to his income, says the IRS. Exemptions allowed include a senior exemption, a personal exemption, and three or less dependent exemptions. The only credit allowed for this form is the non-refundable renter's credit.

The taxpayer does not use the 540 2EZ form if he has a dependent of his own, according to the IRS. This is also not the appropriate form if the taxpayer is single with an income less than $14,056 or married with an income less than $26,062.

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