What IRS Form 1040-EZ (NR) (2014) Is For
IRS Form 1040-EZ (NR) (2014) is used by nonresident aliens who meet specific filing requirements and need a simplified tax return for the 2014 tax year. The Internal Revenue Service designed this form for individuals with limited types of U.S. source income, such as wages or certain FDAP income. It helps determine taxable income and federal income tax owed without requiring the detailed calculations that apply to Form 1040 or Form 1040-NR. This form cannot be used by resident aliens or individuals with more complex tax situations.
When You’d Use IRS Form 1040-EZ (NR) (2014)
You would use IRS Form 1040-EZ (NR) (2014) in specific situations related to your tax status and the type of income you receive.
- Limited types of U.S. source income: You may use this form if you receive only wages, salaries, tips, or taxable scholarship income that is subject to federal income tax withholding and earned during the calendar year.
- Simple tax profile without dependents: You can file this form when your filing requirements do not involve dependents, itemized deductions, or reporting worldwide income.
- Single or married but not filing jointly: You must use this form if you qualify as a nonresident alien who is not permitted to file a joint return for the 2014 tax year.
- Income taxed only at graduated rates: You may use this form if your income reported for the year is taxed at standard graduated rates and does not require complex allocations.
- U.S. wages subject to withholding: You typically use this form when your employer withholds federal income tax from your paycheck, and you need to report taxable wages and the amount withheld.
Key Rules or Details for 2014
Several vital rules apply when filing IRS Form 1040-EZ (NR) (2014) for the 2014 tax year.
- Income that qualifies for this simplified return: Your income must consist only of wages or certain FDAP income, because effectively connected income or capital gains require filing Form 1040-NR instead.
- Restrictions on deductions and credits: Only limited deductions and credits may be claimed on this form, as most adjustments, such as education credits or itemized deductions, require more detailed reporting.
- Limits on taxable income: Your taxable income must fall within the income cap set for this form, because exceeding that limit requires the use of a different federal tax return.
- Treaty benefits: You must apply any lower treaty rate correctly when reporting FDAP income, so you avoid penalties that may result from miscalculating your tax liability.
- Withholding as primary tax payment: Your federal income tax withholding typically covers most of your total tax for the year. However, insufficient withholding may still result in an underpayment amount at tax time.
Step-by-Step (High Level)
These steps outline the high-level process of completing IRS Form 1040-EZ (NR) (2014).
- Gather income and withholding records: Collect all wage statements and income documents to accurately calculate your taxable income and confirm the federal income tax withholding reported for the year.
- Determine your filing status: You must verify that you qualify as a nonresident alien for the current year and confirm that you are not eligible to file as a resident alien for tax purposes.
- Calculate taxable income: Use your income records to determine your taxable income after applying the limited deductions allowed by this form.
- Compute tax liability: You must apply the appropriate 2014 tax tables so you can determine your total tax and confirm whether your withholding covers the amount you owe.
- Figure refund or balance due: You should compare your federal income tax withholding with your tax liability to decide whether you will receive a refund or pay additional income taxes.
- Submit your completed form: You must file Form 1040-EZ (NR) (2014) by the required due date and include payment if your withholding does not cover the full amount owed.
Common Mistakes and How to Avoid Them
Several recurring mistakes can create filing problems or penalties when using IRS Form 1040-EZ (NR) (2014).
- Using the wrong form: Verify that your income and tax status qualify for Form 1040-EZ (NR) so you avoid delays, adjustments, or the need to file an amended tax return.
- Ignoring income restrictions: Confirm that your income fits the rules for this simplified form so you accurately report taxable income and avoid errors involving income taxed at graduated rates.
- Incorrect withholding amounts: Review your wage statements to ensure proper tax withholding so you do not owe additional income taxes or face an underpayment issue.
- Missing treaty adjustments: Apply treaty benefits correctly when reporting FDAP income so you avoid penalties associated with calculating tax at an incorrect rate.
- Late filing or payment: File the return and pay any balance due by the required date so you avoid penalties and interest charges.
What Happens After You File
After you file IRS Form 1040-EZ (NR) (2014), the IRS reviews your return and applies your federal income tax withholding to your total tax for the year. If your withholding exceeds what you owe, you receive a refund after processing. If the IRS determines that you underpaid, you may owe additional taxes, interest, or an estimated tax penalty until the payment is made. Any filing corrections or adjustments may affect your refund or balance due for the following year.
FAQs
Can I file IRS Form 1040-EZ (NR) (2014) if I had effectively connected income?
No, you cannot use this form if you have effectively connected income, because that type of income must be reported on Form 1040-NR or Form 1040, depending on your tax status.
Does this form allow me to report quarterly estimated tax payments?
No, this form does not include a section for quarterly estimated tax payments. Any estimated tax payment for the following year must be made using Form 1040-ES or Form 1040-ES (NR).
Can I use this form if I received FDAP income that qualifies for a lower treaty rate?
Yes, you may use this form if your FDAP income qualifies for a lower treaty rate, as long as your other income and filing requirements meet the limitations for Form 1040-EZ (NR).
What if I need to pay estimated taxes for the following year?
If you must pay estimated taxes for the following year, you need to use Form 1040-ES or Form 1040-ES (NR) because these forms are designed to calculate and submit estimated payments that do not belong on your yearly return.
Can I use this form if my employer withheld the wrong amount of federal income tax?
Yes, you may still file this form, and the IRS will calculate whether you are due a refund or owe additional taxes based on the withholding reported on your wage statement.
