Knowing which tax form to use can be difficult to understand. The Internal Revenue Service, or IRS, has created specific forms to make the tax filing process easier for all taxpayers. In addition to the longer standard irs tax from 1040, the 1040A and 1040EZ exist as simpler alternatives. While the 1040A is primarily a simplified version of the standard 1040 form that uses standard deductions, the 1040EZ is a separate form that is even easier to use.

The 1040EZ contains six sections to be completed on only one sheet of paper. However, not everyone can use this form to complete their tax return. It is limited to single and married joint filers who have earned less than $100,000 for the previous tax year and are less than 65 years of age. Also, those persons wishing to itemize their deductions cannot use this form as it only utilizes the standard deductions provided by the IRS. In addition, the 1040 forms is not the correct form for taxpayers that will be declaring dependents. People who were blind at the end of the tax year need to use the 1040A or long form to take advantage of the specific deductions for their disability.

The 1040EZ also has restrictions on the credits and incomes that can be declared. The only specialized credit that can be claimed is the Earned Income Tax Credit and persons who have received advanced EITC payments should use a different form. The incomes that can be reported are limited to the following: wages, salaries, tips that are included in the W-2’s box 5 or 7, unemployment compensation, taxable scholarship or fellowship grants, Alaska Permanent Fund dividends, and taxable interest up to $1500. While it may seem somewhat limiting, the 1040EZ is the easiest way for a qualified person who wants to use the standard deductions to file taxes.