Filing your federal tax return for the 2015 tax year does not have to be overwhelming, especially if you qualify for Form 1040EZ, the simplest tax form offered by the Internal Revenue Service (IRS). This simplified form is designed for taxpayers with basic tax situations, such as wages, taxable interest, or unemployment compensation. By following precise instructions, you can prepare a simple return that reports your income, applies the correct standard deduction, and accurately calculates any tax credits or payments.
The 1040EZ allows eligible filers, including single taxpayers and those married filing jointly as joint filers without dependents, to report their taxable income quickly. Because the form excludes more complex schedules and adjustments, taxpayers only need to claim income from limited sources and enter the total tax payments or withheld amounts reported by their employer. This ensures you know precisely what you may owe or what refund you can expect, without the added burden of other forms, deductions, or complicated reporting requirements.
Choosing Form 1040EZ is especially useful for younger taxpayers, students with scholarships, and first-time filers who want to file electronically for free or by mail with minimal fees. Whether you are a spouse filing jointly, a worker reporting wages, or someone with interest income under the applicable threshold, this guide will help you understand how the IRS expects you to file, how amounts are calculated, and how to avoid common mistakes. You can sign, submit, and pay or claim your refund confidently with clear steps.
Overview of Form 1040EZ
Form 1040EZ represents the most straightforward approach to filing your federal tax return with the Internal Revenue Service. This simplified form serves taxpayers with uncomplicated financial situations who meet specific eligibility criteria established by tax law for the 2015 tax year.
What Is Form 1040EZ?
Form 1040EZ is a single-page federal income tax form designed for individual taxpayers with basic tax situations who do not claim dependents. The form streamlines the reporting process by focusing only on essential income sources such as wages, taxable interest up to $1,500, and unemployment compensation. Unlike other forms in the 1040 series, this simplified form eliminates the need for complex schedules and detailed itemization.
Who Should Use This Form
Joint filers and single taxpayers can use Form 1040EZ when they meet specific requirements:
- Filing status requirements: You must be single or married filing jointly, as this form does not accommodate married filing separately status. The form cannot be used by heads of household or qualifying widows/widowers.
- Age and dependency limitations: Both you and your spouse (if married) must be under age 65 and not blind at the end of 2015. You cannot claim any dependents, including children, elderly parents, or other qualifying relatives.
- Income source restrictions: Your income must come only from wages, salaries, tips, taxable interest of $1,500 or less, unemployment compensation, and Alaska Permanent Fund dividends. Any other income sources disqualify you from using this simplified form.
Key Benefits of Using 1040EZ
Using Form 1040EZ offers significant advantages for eligible taxpayers:
- Simplified filing process: The single-page format requires minimal calculations and eliminates complex schedules, reducing preparation time to typically under an hour. This streamlined approach significantly decreases the likelihood of mathematical errors or missing information.
- Cost-effective preparation options: Many taxpayers qualify for free filing through IRS Free File or can easily prepare the form themselves without professional assistance. The form's simplicity often eliminates the need for expensive tax software or professional preparation fees.
What's New for Tax Year 2015
The 2015 tax year introduced several significant changes impacting Form 1040EZ filers, particularly regarding health care reporting requirements and digital filing enhancements.
Health Care Reporting Requirements
Tax year 2015 marked the first year that Form 1040EZ included dedicated health care reporting through Line 11:
- Full-year coverage reporting: If you maintained qualifying health coverage for all 12 months of 2015, check the "Full-year coverage" box on Line 11. Qualifying coverage includes employer-sponsored plans, individual policies, Medicare, Medicaid, and other approved insurance programs.
- Shared responsibility payment calculations: Taxpayers without qualifying coverage may owe the individual shared responsibility payment, which must be calculated and reported on Line 11. The payment amount depends on your income and family size.
Penalties for Being Uninsured
The individual shared responsibility payment for lacking health insurance increased significantly in 2015:
- Individual penalty amounts: The penalty is $325 per adult or 2% of household income above the filing threshold, whichever is higher. This represents a substantial increase from previous years and is designed to encourage compliance with coverage requirements.
- Family penalty caps: The maximum family penalty is $975, regardless of family size or income level. However, families with very high incomes may find the percentage-based calculation results in higher penalties than the cap amount.
Exclusions Related to Premium Tax Credit
Taxpayers who received advance premium tax credit payments through Health Insurance Marketplace plans face essential restrictions:
- Form 1040EZ disqualification: If you or anyone in your household received advance premium tax credit payments, you cannot use Form 1040EZ and must file Form 1040A or Form 1040 instead. This requirement applies even if the advance payments were small.
Digital Filing Improvements
The 2015 tax year brought enhanced electronic filing options:
- Expanded free filing options: The IRS Free File program expanded eligibility and improved software offerings, making electronic filing accessible to more taxpayers. Enhanced features include better error-checking capabilities and streamlined interview processes.
- Enhanced security measures: New identity protection measures include verification codes on Forms W-2 for electronic filers and improved encryption for data transmission.
Updated Income Thresholds and Filing Deadline
Several critical thresholds and deadlines changed for 2015:
- Increased standard deduction amounts: The standard deduction increased to $10,300 for single filers and $20,600 for joint filers, potentially reducing taxable income for many taxpayers. The personal exemption amount also increased to $4,000 per person.
- Extended filing deadline: The filing deadline moved to April 18, 2016 (April 19 for Maine and Massachusetts residents) due to Emancipation Day observance in Washington, D.C.
Step-by-Step Filing Instructions
Completing Form 1040EZ requires careful attention to detail and systematic progression through each section to ensure accuracy and compliance with federal tax requirements.
Pre-Filing Checklist
Before beginning your Form 1040EZ, gather all necessary documents and verify your eligibility:
- Required income documents: Collect all Forms W-2 from employers, Forms 1099-INT for interest income exceeding $10, Form 1099-G for unemployment compensation, and any documentation of Alaska Permanent Fund dividends.
- Personal identification materials: Have Social Security cards available for yourself and your spouse if filing jointly, along with a valid photo ID. Accurate Social Security numbers are crucial for proper processing.
- Banking information for refunds: If you expect a refund and want direct deposit, gather your bank routing and account numbers from a check or bank statement.
Step 1: Personal Information and Filing Status
Enter your personal information exactly as it appears on official documents to avoid processing complications. Write your full legal name as shown on your Social Security card, not nicknames or variations you might commonly use. Include the mailing address where you want to receive correspondence from the IRS, ensuring the address is complete with apartment numbers and ZIP codes.
Step 2: Report Wages and Salary Income
Calculate your total wage income by adding Box 1 amounts from all Forms W-2 you received during 2015. This includes wages, salaries, and tips reported to your employer and should reflect your total taxable compensation. If you worked multiple jobs during the year, carefully add the amounts from each W-2 to ensure you report complete wage income.
Step 3: Calculate Taxable Interest Income
Report all taxable interest you earned during 2015 from savings accounts, checking accounts, certificates of deposit, and other interest-bearing accounts. Add amounts from all 1099-INT forms you received, ensuring the total does not exceed $1,500, the maximum allowable for Form 1040EZ users.
Step 4: Include Unemployment Compensation
Enter the total unemployment compensation you received in 2015 as shown in Box 1 of Form 1099-G from your state unemployment agency. All unemployment benefits are fully taxable at the federal level and must be included in your income calculations.
Step 5: Determine Your Standard Deduction
Calculate your standard deduction based on your dependency status, which significantly impacting your tax liability. If no one else can claim you as a dependent, enter the full standard deduction amount of $10,300 for single filers or $20,600 for joint filers. However, if someone else can claim you as a dependent, check the appropriate box and use the worksheet to calculate your limited standard deduction.
Step 6: Calculate Federal Income Tax Withheld
Add the federal income tax withheld amounts from Box 2 of all your Forms W-2 to determine total tax payments made toward your tax liability. This represents the money your employers sent to the IRS on your behalf throughout the year through payroll withholding.
Step 7: Apply for Earned Income Credit
Determine your eligibility for the Earned Income Credit, a valuable refundable credit for low-income workers without qualifying children. For 2015, single filers with earned income and adjusted gross income under $14,820 may be eligible, while joint filers must have both amounts under $20,330.
Step 8: Address Health Care Coverage Requirements
Complete Line 11 by indicating your health insurance coverage status for 2015, which is required under the Affordable Care Act. If you maintained qualifying coverage for all 12 months, check the "Full-year coverage" box and move to the next section.
Step 9: Sign and Date Your Return
Both you and your spouse (if filing jointly) must sign and date the completed return using blue or black ink if filing a paper return. Include your occupation and a daytime telephone number where the IRS can reach you if questions arise during processing.
How to File Your Return
You have two primary methods for submitting your completed Form 1040EZ: electronic filing or traditional paper filing.
E-Filing (Recommended Option)
Electronic filing represents the fastest, most secure, and most accurate method for submitting your federal tax return:
- Speed and efficiency benefits: E-filed returns are typically processed within 2-3 weeks compared to 6-8 weeks for paper returns, with refunds arriving much faster when combined with direct deposit.
- Built-in error checking: Electronic filing software automatically checks for mathematical errors, missing information, and common mistakes before submission. This reduces the likelihood of IRS correspondence requesting corrections.
- Free filing options: The IRS Free File program provides free electronic filing for taxpayers with adjusted gross income of $62,000 or less through brand-name tax software.
Paper Filing
Traditional paper filing remains available for taxpayers who prefer this method:
- Preparation requirements: Complete your Form 1040EZ using black or blue ink, ensuring all information is legible and accurate. Attach all required Forms W-2 to the left margin of your return.
- Processing timeframes: Paper returns take significantly longer to process, typically 6-8 weeks from when the IRS receives your return.
Payment Instructions
If you owe additional federal income tax after completing your Form 1040EZ, you have several convenient options for making payment by the deadline of April 18, 2016.
Electronic Payment Options
Modern electronic payment methods offer convenience, security, and immediate confirmation:
- IRS Direct Pay: This free service lets you pay directly from your checking or savings account through the IRS website at www.irs.gov/payments. It provides immediate confirmation of your payment and allows you to schedule payments up to 365 days in advance.
- Credit and debit card payments: Several IRS-approved payment processors accept major credit and debit cards for tax payments. While convenience fees apply (typically $2-4 for debit cards and 1.87-1.99% for credit cards), this option provides flexibility.
Traditional Payment Methods
Conventional payment options remain available:
- Check or money order payments: Make checks payable to "United States Treasury" and include "2015 Form 1040EZ" and your Social Security number on the memo line. Use Form 1040-V payment voucher to ensure proper crediting of your payment.
What If You Cannot Pay in Full?
The IRS offers several options for taxpayers unable to pay their full tax liability:
- Installment agreements: You can request a monthly payment plan online at www.irs.gov/payments or by calling the IRS directly. Online agreements typically have lower setup fees and faster approval than paper requests.
- Partial payment strategies: File your return on time even if you cannot pay the full amount, as late-filing penalties are typically higher than late-payment penalties.
Required Schedules and Attachments
Form 1040EZ is designed for simplicity, which means most users will not need additional schedules or complex attachments.
Mandatory Attachments for 1040EZ
Only a few attachments are required with Form 1040EZ:
- Form W-2 attachment requirement: All Forms W-2 must be attached to the left margin of page 1 when filing a paper return. Electronic filers do not need to mail W-2s unless specifically requested by the IRS.
- Form 8888 for refund allocation: If you want to split your refund among multiple accounts or financial products, complete Form 8888 and attach it to your return.
Situations That Disqualify You from 1040EZ
Several everyday situations require using Form 1040A or Form 1040 instead:
- Income complexity: If you have dividend income of any amount, interest income exceeding $1,500, capital gains or losses, business income, or rental income, you cannot use Form 1040EZ.
- Tax credit limitations: Claiming education credits, child tax credits, dependent care credits, or most other tax credits requires more comprehensive forms. Form 1040EZ only allows the Earned Income Credit for taxpayers without qualifying children.
Quick Attachment Checklist
Before submitting your Form 1040EZ, verify you have included all required attachments:
- W-2 forms properly attached: All W-2 forms are securely attached to the left margin without covering any information on your return (paper filing only).
- No prohibited attachments: You have not attached schedules, additional forms, or documentation that would disqualify you from using Form 1040EZ.
Common Mistakes to Avoid
Even with Form 1040EZ's simplicity, specific errors can delay processing or create correspondence with the IRS.
Personal Information Errors
Accuracy in personal information is crucial:
- Social Security number mistakes: Transposing digits or entering incorrect Social Security numbers causes significant processing delays and may result in rejected electronic returns.
- Name discrepancies: Names must precisely match Social Security Administration records, including proper spelling and format.
Math and Tax Table Mistakes
Mathematical accuracy is essential:
- Basic arithmetic errors: Simple addition and subtraction mistakes in calculating adjusted gross income, taxable income, or total payments can trigger IRS corrections and delay processing.
- Tax table usage errors: Using the wrong filing status column, income range, or previous year's tax table can lead to incorrect tax calculations.
Reporting Income Incorrectly
Accurate income reporting prevents IRS correspondence:
- W-2 reporting mistakes: Using gross pay instead of Box 1 amounts, forgetting to include all W-2s from multiple employers, or omitting short-term employment can result in income underreporting.
- Interest income oversights: Failing to report all taxable interest, including small amounts from various accounts, can trigger automated matching notices from the IRS.
Signature and Filing Issues
Proper completion prevents processing delays:
- Missing signatures: Unsigned returns are invalid and will be returned unprocessed, causing significant delays. If married filing jointly, both spouses must sign.
- Electronic filing problems: Incorrect PINs, mismatched information with prior year returns, or duplicate filing attempts can cause electronic filing rejections.
Zero Activity or Dormant Year Guidance
Some taxpayers may have minimal income or financial activity during 2015 but still need to understand their filing obligations.
Filing Requirements with Minimal Income
Understanding when you must file helps ensure compliance:
- Income thresholds for filing: Single taxpayers under 65 must file if gross income reaches $10,300, while married filing jointly couples must file if gross income reaches $20,600.
- Exceptional circumstances requiring filing: Even with income below the thresholds, you must file if you owe self-employment tax or have wages subject to Social Security and Medicare taxes.
When Filing Still Makes Sense
Filing a return can be beneficial even when not required:
- Refund of withheld taxes: If federal income tax was withheld from your paychecks but your total income is below the filing threshold, filing a return is the only way to recover these overpayments.
- Earned Income Credit eligibility: Low-income workers may qualify for the refundable Earned Income Credit, resulting in refunds exceeding any taxes owed or withheld.
Exceptional Cases (Students, Unemployed, Retirees)
Certain groups have unique considerations:
- Student filers: College students often have income from part-time work and scholarships, which creates complex filing situations. While parents may claim them as dependents, students may still benefit from filing their returns.
- Unemployment recipients: Unemployment compensation is fully taxable and often pushes recipients above filing thresholds even if they worked only part of the year.
First-Time Filer Tips
Filing your first federal tax return can feel overwhelming, but Form 1040EZ simplifies the process for eligible taxpayers.
Am I Required to File?
Understanding your filing obligation helps ensure compliance:
- Age and income considerations: Most first-time filers are young adults whose filing requirements depend on age, income level, and dependency status. Single filers under 65 must file if gross income reaches $10,300.
- Student and dependency situations: Many first-time filers are college students who can be claimed as dependents by their parents but still benefit from filing their own returns to recover withheld taxes.
Document Checklist
Proper preparation ensures smooth completion:
- Essential income documents: Gather all Forms W-2 from employers, Forms 1099 for interest or other income, and documentation of unemployment benefits or other taxable income sources.
- Personal identification: Make Social Security cards available for accurate number entry and maintain records of name changes that might affect tax filing.
Common First-Timer Mistakes
Avoiding typical errors helps ensure smooth processing:
- Dependency status confusion: Many first-time filers incorrectly determine whether someone else can claim them as a dependent, significantly affecting their standard deduction amount.
- Income reporting oversights: First-time filers often forget to include all income sources or use incorrect amounts from tax documents. Always use Box 1 on the W-2 forms for wage reporting.
Frequently Asked Questions
What does "EZ" stand for in Form 1040EZ?
This simplified federal tax return is designed for taxpayers with basic tax situations. The abbreviation "EZ" stands for "easy," reflecting the nature of the return itself. The form eliminates complex schedules and calculations unnecessary for straightforward tax situations, making it accessible to individual taxpayers who meet specific eligibility requirements and want an efficient filing process.
Can I use Form 1040EZ if I'm married?
Yes, married couples can use Form 1040EZ; however, they must choose the legal status of "married filing jointly" and meet all other eligibility requirements. The married filing separately status is not available on Form 1040EZ, so couples wanting separate returns must use Form 1040A or Form 1040 instead.
What's the maximum income allowed for using Form 1040EZ?
Your taxable income must be less than $100,000 to qualify for Form 1040EZ, and there are additional restrictions on the types of income and sources of revenue. Interest income cannot exceed $1,500, and you can only have wages, tips, taxable interest, unemployment compensation, and Alaska Permanent Fund dividends as income sources.
Can I file Form 1040EZ if I have dependents?
It is impossible to use Form 1040EZ if you claim any dependents, such as children, elderly parents, or other relatives who meet the requirements. To claim dependents and access related tax benefits like the Child Tax Credit or dependency exemptions, you must use Form 1040A or Form 1040.
Do unemployment benefits go on Form 1040EZ?
Yes, unemployment compensation is fully taxable and must be reported on Line 3 of Form 1040EZ using the amount from Box 1 of Form 1099-G. It is necessary to include all of the unemployment benefits received in 2015, regardless of whether federal taxes were deducted from the payments.
What happens if I make a mistake on my 1040EZ?
Suppose you find errors after filing your taxes. In that case, you can correct them by submitting Form 1040X, the amended version of the United States Individual Income Tax Return, within three years of the deadline for filing your taxes. The IRS often automatically corrects minor mathematical errors, but formal amendments may be necessary for significant mistakes.
How long should I keep my filed tax return and supporting documents?
Keep your completed tax return and all supporting documents for at least three years from the filing date or two years from when you paid the tax, whichever is later. If you underreported income by 25% or more, retain records for six years, and keep employment records indefinitely for Social Security benefit calculations.
