From 1040EZ to Form 1040: 2020 Simple Tax Return Guide

The IRS discontinued Form 1040EZ beginning with tax year 2018, which means all taxpayers now use Form 1040 or Form 1040-SR. Many filers who previously relied on the short form wonder how to file the federal Form 1040EZ tax for 2020, but the process now runs through the redesigned federal income tax return. This guide explains the transition in simple terms and helps you prepare and file correctly, even if your situation is basic.

For the 2020 tax year, simple income tax returns remain straightforward. The standard deduction covers most filers, so you may not need to worry about itemized deductions such as state and local taxes, mortgage interest, or other detailed reporting. If your income came from wages, employers issued W-2 forms, and you claimed no complex credits, your federal tax can be reported with only the main form and no extra schedules.

This filing guide will walk through the step-by-step process, highlight changes like the Recovery Rebate Credit from economic impact payments, and explain how to calculate what you owe or determine if a refund is due. Whether you are filing for the first time or reviewing prior years, the goal is to make the process transparent, accurate, and accessible so you can confidently file and avoid common mistakes.

What Happened to Form 1040EZ?

Form 1040EZ was one of the simplest federal tax return options for filers with basic income, no dependents, and limited deductions. Beginning with tax year 2018, the IRS discontinued Form 1040EZ and Form 1040A. From then on, all taxpayers were required to file using Form 1040 or the senior-friendly Form 1040-SR. The change simplified the process by eliminating confusion about which form to choose.

The updated federal income tax form now uses a building block approach. Instead of different versions for different filers, everyone begins with the same Form 1040. Additional schedules are added only when necessary, such as reporting business income, itemized deductions like state and local taxes, or claiming certain credits. This system allows taxpayers to file simple returns on just the two-page form.

Key differences between Form 1040EZ and Form 1040 include:

Form 1040EZ was limited to single and married filing jointly filers with no dependents, wages under a certain amount, and no adjustments to income.
Form 1040 applies to all taxpayers, regardless of income type, age, or filing status.
While Form 1040 may look more detailed, taxpayers with straightforward income usually only complete the main sections without schedules.
Previous years of 1040EZ filing experience can guide you in completing Form 1040 because the information is essentially the same, such as wages from employers and standard deduction claims.

The move away from Form 1040EZ ensures consistency across income tax returns. Although the form name changed, reporting income, calculating federal income tax, and determining whether you owe or qualify for a refund remain familiar for most filers.

Filing Options for Tax Year 2020

Taxpayers who previously filed Form 1040EZ must now use either Form 1040 or Form 1040-SR. Both forms are the standard federal tax return, but your chosen version depends on your age and personal needs.

Form 1040 is available to all taxpayers regardless of age or income type. It works for filers who earn wages, Social Security benefits, or income from investments. This form also allows you to attach schedules only when necessary, such as when reporting business income, claiming deductions for mortgage interest, or itemizing state and local taxes.
Form 1040-SR is explicitly designed for taxpayers 65 or older. It uses larger fonts and a more straightforward layout, making it easier to read. This form provides the same tax calculations as Form 1040, including federal income tax, credits, and deductions. Seniors may use it if they prefer, but they also have the option to file Form 1040 instead.

The IRS created these two versions so that all filers could follow a single process, while still giving older taxpayers an accessible format. Regardless of which form you select, the IRS processes your income tax return the same way.

What’s New for 2020 Taxes

The tax year 2020 introduced several significant changes to federal income tax returns. These updates were designed to provide relief during the COVID-19 pandemic and expand opportunities for taxpayers to reduce their tax bills.

The Recovery Rebate Credit allowed taxpayers to claim missing or partial economic impact payments. Eligible individuals could receive up to $1,200, and married couples could receive up to $2,400, with an additional $500 available for each qualifying child. Because this was a refundable credit, taxpayers could claim the money even if they did not owe federal tax.
The Unemployment Compensation Exclusion removed up to $10,200 in unemployment benefits from taxable income for filers with adjusted gross income below $150,000. On joint returns, each spouse could apply the exclusion separately, which helped many taxpayers reduce their federal income tax liability.
The Charitable Donations Deduction allowed filers who claimed the standard deduction to deduct up to $300 in charitable donations. This applied only to cash contributions to qualified organizations, giving taxpayers an extra way to lower taxable income without itemizing.
The Standard Deduction Increase raised deduction amounts for all filing statuses. For single filers, the amount was $12,400. For married couples filing jointly, the deduction was $24,800. For heads of household, the deduction was $18,650. Additional amounts were applied if the taxpayer was 65 or older or legally blind.

These changes allowed taxpayers to reduce taxable income, claim refunds, or pay less federal tax. They are especially relevant for filers who relied on the discontinued Form 1040EZ and need to understand how the newer rules apply.

Step-by-Step Guide to Filing Form 1040 (Simple Returns)

For filers who previously used Form 1040EZ, completing Form 1040 is still a straightforward process. The following steps explain how to prepare and file a simple return.

Gather your documents. Collect all W-2 forms from employers, 1099 forms for interest or dividends, Social Security statements, and receipts for deductions such as charitable donations. Having these ready ensures that your income reporting is accurate.
Enter personal information. Fill in your name, address, Social Security number, and filing status. You must also answer the virtual currency question, which asks if you received, sold, or exchanged digital currency during the tax year.
Choose your filing status. Select the option that applies to your situation: single, married filing jointly, married filing separately, head of household, or qualifying widow(er). Your filing status determines the percentage used in tax calculations, the standard deduction amount, and your eligibility for certain credits.
List your dependents. Provide each dependent’s name, Social Security number, and relationship to you. This information determines eligibility for credits such as the child tax or other dependent credit.
Report all income. Include wages, salaries, and tips as shown on W-2 forms, interest from banks, dividends from investments, and unemployment compensation. If you qualify for the unemployment compensation exclusion, subtract the appropriate amount before moving forward.
Calculate your adjusted gross income (AGI). Add up all your sources of income, subtract any eligible adjustments, and apply the unemployment exclusion if it applies. Enter the results on the AGI line of Form 1040.
Apply the standard deduction. Most simple returns use the standard deduction rather than itemizing deductions like state and local taxes or mortgage interest. Choose the correct amount based on your filing status and age.
Determine your taxable income. Subtract the standard deduction and any eligible adjustments from your AGI. The result is your taxable income, the figure used to calculate federal income tax.
Calculate your federal tax. Use the IRS tax tables to determine the tax amount based on your taxable income and filing status. The tables show the percentage owed at different income levels.
Claim credits. Apply refundable and nonrefundable credits, such as the Recovery Rebate or child tax credit. Credits reduce the tax owed and may increase the refund you receive.
Report payments and withholding. Add up all amounts withheld by employers for federal tax, Medicare tax, and Social Security, as well as any estimated payments you made during the year.
Calculate the refund or balance due. You will be refunded if your payments and credits exceed the tax owed. If your payments and credits are less than the tax owed, you owe the difference and must pay it to the IRS.
Sign and file your return. Review the completed form for accuracy, sign and date it, and file it electronically or by mail. The IRS e-file system displays a locked padlock icon to confirm the secure process when filing electronically.

Following these steps helps filers prepare a complete and accurate income tax return. For taxpayers with simple income sources, this process requires only the main two-page Form 1040 and no additional schedules.

How to File: E-File vs Paper Filing

The IRS recommends that taxpayers file electronically whenever possible. E-filing speeds up refund processing, reduces errors, and provides confirmation that your federal income tax return was received. Paper filing is still available, but it usually takes longer and requires more care in preparing documents.

E-filing with IRS Free File is available to taxpayers with an adjusted gross income of $72,000 or less in tax year 2020. It allows filers to use brand-name software at no cost and includes guided instructions for preparing the return.
Free File Fillable forms are available to all filers regardless of income. These forms provide an online version of paper forms and automatically perform basic calculations, but they are best for experienced taxpayers who can prepare returns without assistance.
Volunteer programs such as VITA and TCE provide free preparation services to eligible taxpayers. VITA generally serves lower-income people, while TCE specializes in helping older filers with Social Security, Medicare, and retirement-related questions.
Commercial tax software such as TurboTax, H&R Block, and TaxAct offers step-by-step interviews, error checks, and customer support. While not free in every case, many taxpayers prefer this option for convenience.
Paper filing requires printing or typing clearly on Form 1040, attaching copies of W-2s and 1099s, and mailing the return to the IRS address listed in the instructions for your state. Returns must be signed, dated, and sent with sufficient postage.

Whether you e-file or mail in your forms, you should keep copies for your records. Electronic filing is generally processed in 21 days or less, while paper returns may take six to eight weeks.

Payment Instructions if You Owe Taxes

If your total tax liability exceeds the payments and credits already applied, you will owe the IRS the difference. The IRS provides several payment options, and taxpayers should choose the best option.

IRS Direct Pay allows you to pay directly from a checking or savings account at no cost. You can schedule payments in advance, receive confirmation, and complete the process securely on the IRS website.
Pay by phone is available through an automated system. You can make payments with a bank account or debit or credit card, though card payments may include additional fees.
A check or money order can be mailed with Form 1040-V, the payment voucher. You must make checks payable to the United States Treasury, include your Social Security number, and send them to the address specified for your state.
Installment agreements are available if you cannot pay your full balance simultaneously. You can apply online for a monthly payment plan, but interest and penalties will continue until the balance is fully paid.

Taxpayers should note that interest accrues daily and penalties apply if late payments are made. For example, the failure-to-pay penalty is usually 0.5 percent of the unpaid monthly tax, up to a maximum of 25 percent. Filing your income tax return on time, even if you cannot pay in full, reduces penalties compared to not filing at all.

Required Schedules and Attachments

Most simple filers who once used Form 1040EZ only need to complete the basic two-page Form 1040. However, taxpayers with more complex financial situations may need to add schedules or attach additional forms.

You do not need additional schedules if your return only includes wages, basic interest, the standard deduction, and common credits such as the child tax credit or Recovery Rebate Credit. In this case, the process is almost identical to filing Form 1040EZ in previous years.
You need Schedule 1 to report business income, unemployment compensation, capital gains, rental income, or adjustments such as student loan interest or deductible IRA contributions.
You need Schedule 2 if you owe additional taxes, such as the alternative minimum, self-employment, or household employment taxes.
You need Schedule 3 if you plan to claim credits beyond the basics, such as the education credit, foreign tax credit, or premium tax credit.

When filing a paper, you must attach copies of your W-2s, any 1099-R forms showing federal tax withholding, and Form 8962 if you claim the premium tax credit. Keep receipts and supporting records for deductions or credits, even if you do not send them with your return.

Attaching the correct schedules ensures that your income, deductions, and credits are reported accurately. It also helps the IRS process your federal tax return without delays or requests for additional information.

Common Mistakes to Avoid When Filing

Errors on a federal tax return can delay processing, reduce refunds, or increase the amount you owe. Mistakes can be prevented if you double-check your forms and follow IRS instructions carefully.

Mistakes in personal information are common. Taxpayers sometimes enter the wrong Social Security number, misspell names, or provide outdated addresses. These errors can delay refunds or cause the IRS to reject the return.
Filing status errors often lead to incorrect tax calculations. Choosing the wrong filing status, such as single instead of head of household, may cause you to miss valuable credits or claim the wrong standard deduction.
Dependent information errors can result in denied credits. Missing or incorrect Social Security numbers, claiming ineligible dependents, or having two filers claim the same child can cause issues with the child tax credit.
Income reporting mistakes are a frequent cause of IRS notices. Forgetting to include wages from all employers, failing to report unemployment benefits, or misreporting interest and dividends can create mismatches between your return and IRS records.
Deduction and credit mistakes reduce accuracy. Filers sometimes miscalculate the Recovery Rebate Credit, forget to include charitable donations, or claim deductions not allowed for their income level or age.
Signatures and required attachments are sometimes overlooked. The taxpayer must sign and date paper returns, and copies of W-2 forms must be attached. Without them, the IRS cannot process the return.

Reviewing your income tax return, using tax software that checks for errors, or consulting a qualified preparer can help prevent these common mistakes.

Special Situations: Zero Income or First-Time Filers

Some taxpayers believe they do not need to file if they earned little or no income, but filing may still provide benefits. Similarly, first-time filers often need extra guidance to prepare an accurate return.

Filing with no income may still be worthwhile. Even if you did not earn enough to owe federal income tax, you may qualify for refundable credits such as the Recovery Rebate Credit or the Earned Income Credit. Filing ensures you can claim money owed to you.
Low-income filers can often claim a refund. If your employer withheld federal tax from your paycheck, you may be eligible for a refund even if your total income was below the filing threshold. Filing is the only way to recover these amounts.
First-time filers should start with a checklist. Gather W-2 forms from employers, 1099 forms showing interest or dividends, and your Social Security card. Keep receipts for deductible expenses such as charitable donations, even if you take the standard deduction this year.
The filing process is designed to be manageable. Most new filers have simple returns and can complete the federal tax return using only Form 1040. Tax software and the IRS Free File program can guide you through each step, making the process less intimidating.
Filing even when not required can be a good strategy. Submitting a return establishes a record with the IRS, helps when applying for financial aid or loans, and ensures that you do not miss out on credits or refunds from previous years.

By understanding these exceptional cases, taxpayers can make informed decisions, claim available credits, and avoid leaving money unclaimed.

Frequently Asked Questions

How to file the federal Form 1040EZ tax for the year 2020?

After the previous year, the IRS discontinued Form 1040EZ, so taxpayers for the 2020 tax year must file using Form 1040 or Form 1040-SR. The federal tax return requires reporting income from employers, calculating federal income tax, and determining whether you owe or qualify for a refund. Filers should prepare receipts, W-2 forms, and other documents, then file electronically for free or by mailing forms to the correct address.

Can I still claim state and local taxes or mortgage interest deductions?

Taxpayers using the standard deduction cannot claim itemized deductions like mortgage interest or state and local taxes on the same income tax return. However, if itemizing provides a larger benefit, you may prepare schedules to include these amounts. Calculate the standard and itemized deductions to determine the best option, then choose which lowers your federal tax most effectively.

What are economic impact payments and the Recovery Rebate Credit?

Economic impact payments were advance credits for taxpayers during the 2020 tax year. You could claim the Recovery Rebate Credit on your federal tax return if you did not receive the full amount. This refundable credit allows filers to calculate and claim money owed even if they had little income or no federal tax liability. Reporting correctly ensures the IRS can process payments or refunds without delay.

Can I deduct charitable donations if I use the standard deduction?

Yes. For the 2020 tax year, taxpayers who took the standard deduction could still claim up to $300 in charitable donations without using itemized deductions. These contributions had to be in cash and given to qualified organizations. Including charitable donations reduces taxable income and can increase your refund. Filers should keep receipts for all contributions to provide proof if the IRS requests verification during the reporting process.

How does filing status affect my federal income tax?

Your filing status determines the percentage of federal tax you owe, the standard deduction you can claim, and the credits available. For example, a single filer has a different calculation than someone married filing jointly. Filers must accurately prepare their income tax return using the correct filing status to calculate taxes correctly. Choosing incorrectly may affect refunds, credits, and how the IRS figures your federal tax liability.

What common mistakes should filers avoid on a federal tax return?

Frequent errors include reporting the wrong Social Security number, forgetting income from prior years or multiple employers, and misplacing receipts for deductions. Other mistakes involve missing signatures on forms, misreporting interest, and choosing the wrong filing status. Taxpayers should verify their address, double-check all calculations, and attach schedules when necessary. Using IRS e-file with the locked padlock icon helps prepare and file securely, avoiding refund delays.

What if I owe money after completing my income tax return?

If you owe federal tax after completing your return, you can pay using IRS Direct Pay, a check, or a credit card. Taxpayers may also apply for an installment agreement. Interest and penalties accumulate by percentage if payments are late. The best process is to file on time, calculate accurately, and pay as much as possible. Filing even when owed avoids higher penalties and keeps your income tax reporting current.

From 1040EZ to Form 1040: Complete 2020 Filing Guide for Simple Tax Returns.