What Replaced Form 1040-EZ for Simple Tax Filing?
Form 1040-EZ is no longer in use, but filing a simple tax return remains straightforward. Learn how to navigate the current Form 1040 for a basic filing.
The Internal Revenue Service (IRS) discontinued the use of Form 1040-EZ for filing federal income taxes following the 2017 tax year. This form was officially retired as part of a redesign that consolidated the 1040-EZ, the 1040-A, and the traditional Form 1040 into a single document. All taxpayers now use the redesigned Form 1040. This form employs a “building block” approach, allowing individuals to add schedules only as their tax situation requires.
Eligibility Criteria for the Former Form 1040-EZ
To use the now-obsolete Form 1040-EZ, a taxpayer had to meet a set of requirements that defined a simple tax situation. The form was available only to individuals with a filing status of Single or Married Filing Jointly. A restriction was that the taxpayer, and their spouse if filing jointly, had to be under the age of 65 and not blind at the end of the tax year. Filers also could not claim any dependents.
The income qualifications were also specific. A taxpayer’s taxable income had to be less than $100,000. The sources of this income were limited to wages, salaries, tips, unemployment compensation, and taxable scholarship or fellowship grants. Taxable interest income was permitted, but it could not exceed $1,500 for the year.
The rules also restricted the types of deductions and credits a person could claim. Filers using the 1040-EZ could not claim any adjustments to income, such as deductions for student loan interest or educator expenses. Itemized deductions were not permitted, meaning taxpayers had to use the standard deduction. The only tax credit that could be claimed on Form 1040-EZ was the Earned Income Tax Credit (EITC).
Required Information for a Simple Tax Filing
Preparing to file a simple tax return involves gathering several documents and pieces of personal information. You will need the Social Security numbers for yourself and your spouse if filing a joint return. The primary document for most filers is Form W-2, Wage and Tax Statement, which you receive from each employer.
From your W-2, you will need the total wages in Box 1 and the federal income tax withheld in Box 2. If you received unemployment compensation, this information is reported on Form 1099-G, Certain Government Payments. For those who earned interest income, you will need Form 1099-INT, Interest Income, which shows taxable interest in Box 1.
Guidance for Filing a Simple Return on the Current Form 1040
Individuals who previously used Form 1040-EZ now file using the standard Form 1040, but will only need to complete a small portion of it. The process begins by selecting your filing status, such as Single or Married filing jointly. You will then enter your name, Social Security number, and address in the designated fields.
Wages from your W-2 are reported on Line 1a, and any taxable interest from Form 1099-INT is entered on Line 2b. Certain other types of income, like unemployment compensation, are first listed on Schedule 1, and the total from that schedule is carried over to Line 8 of Form 1040. These figures are then combined to calculate your total income on Line 9.
After your income is tallied, you will determine your taxable income on Line 15. The tax on this income is then calculated, leading to your total tax on Line 24.
On Line 25a, you will enter the total federal income tax withheld from your W-2(s). This amount is part of your total payments, which are calculated on Line 33. By comparing your total tax on Line 24 with your total payments, you can determine if you are due a refund, shown on Line 34, or if you have an amount you owe, shown on Line 37.