Form 1040-EZ 2010 Filing Guide for Individual
Taxpayers
Eligibility Requirements and Form Selection
Form 1040-EZ offers a streamlined filing option for taxpayers who meet strict eligibility rules set by the Treasury Department. To qualify, you must be a U.S. citizen or resident alien filing a 2010 calendar-year return with a status of single or married filing jointly, and this form does not allow any dependent claims.
Age and income limits also apply. Both spouses must be under age 65 at the end of 2010 if filing jointly, and total taxable income must be less than $100,000. Anyone born on January 1, 1946, is treated as age 65 for tax purposes and is therefore ineligible to use Form 1040-EZ. Income reported on this return is limited to wages, salaries, tips, taxable scholarship or fellowship grants, unemployment compensation, and Alaska Permanent Fund dividends, with taxable interest capped at $1,500.
Several tax provisions enacted before and during 2010 affect eligibility but do not expand what can be claimed on this form. Credits introduced under the American Recovery and
Reinvestment Act of 2009, such as the Making Work Pay credit and enhanced Earned Income
Tax Credit rules, continued into 2010. By contrast, the child tax credit created under the
Economic Growth and Tax Relief Reconciliation Act of 2001 remains unavailable on Form
1040-EZ because this form does not allow dependent claims.
Income Reporting and Documentation
Gather all Forms W-2 from employers for wages earned during 2010 and enter the total wages from box 1 on Line 1 of Form 1040-EZ. Married couples filing jointly must combine wages from both spouses' W-2 forms and attach all W-2 forms to the return in the order received.
Collect Forms 1099-INT for taxable interest and Forms 1099-DIV for ordinary dividends received during the tax year. Enter combined taxable interest on Line 2, verify that the total does not exceed the $1,500 threshold, and report unemployment compensation and Alaska Permanent
Fund dividends on Line 3 as required by the instructions.
Line 4 calculates your adjusted gross income by adding Lines 1, 2, and 3 together. This amount determines your eligibility for various tax credits and affects your overall tax burden for the fiscal year.
The standard deductions for 2010 are $5,700 for single filers and $11,400 for married couples filing jointly. Line 5 requires you to enter the applicable standard deduction amount, or if someone can claim you as a dependent, you must use the worksheet provided in the instructions.
Tax Credits Available on Form 1040-EZ
Federal income tax withheld from wages is reported on Line 7 using the amounts shown on all
Forms W-2 issued for 2010. Add together the total withholding from each form and enter the combined figure on this line.
Line 8 applies to the Making Work Pay credit, a provision enacted under the American Recovery and Reinvestment Act to lower tax liability for employed taxpayers. This credit equals 6.2 percent of earned income, with a maximum benefit of $400 for single filers or $800 for married couples filing jointly.
Any taxpayer who received a $250 economic recovery payment during 2010 must reduce the credit by that amount. The worksheet on the back of Form 1040-EZ must be used to compute the correct credit amount, as these payments were issued based on 2009 return information.
Earned Income Tax Credit amounts for filers without qualifying children are entered on Line 9a.
Eligibility depends on earned income limits of $13,460 for single filers or $18,470 for married couples filing jointly for the 2010 tax year. Only taxpayers without qualifying children may claim this credit on Form 1040-EZ.
Returns involving qualifying children require a different filing option. In those cases, Form 1040A or Form 1040 must be used, along with Schedule EIC (Form 1040A or 1040). This schedule collects detailed information about qualifying children and determines the credit amount, which varies based on earned income, filing status, and additional age and residency requirements.
Calculating Total Tax and Refund Amount
Line 10 calculates your total payments and credits by adding Lines 7, 8, and 9a together, representing all amounts available to offset your tax liability for 2010. Line 11 requires you to
look up your tax amount in the tax table provided in the instructions, using your taxable income from Line 6 and your filing status.
Compare Line 10 with Line 11 to determine whether you receive a refund or owe additional tax.
If Line 10 exceeds Line 11, subtract Line 11 from Line 10 to calculate your refund amount, then enter that amount on Line 12a. Direct deposit is the fastest way to receive your refund, typically within 10 days of filing electronically on the IRS website. Provide your bank routing number on
Line 12b, your account number on Line 12d, and indicate whether the account is checking or savings on Line 12c.
If Line 11 exceeds Line 10, subtract Line 10 from Line 11 to calculate the amount you owe.
Enter this amount on Line 13 and include payment with your return by the filing deadline of April
18, 2011.
Filing Requirements and Submission
Both spouses must sign Form 1040-EZ if you file a joint return, and you must include your daytime phone number for the IRS to contact you with questions. Verify that all names, Social
Security numbers, and dates of birth match Social Security Administration records precisely to prevent processing delays.
Attach Forms W-2 and Forms 1099 to the front of your return in the order specified by the instructions. Do not attach Form 1040A or Form 1040 to Form 1040-EZ, as these are separate return types. Mail your completed return to the address listed in the instructions for your state, which varies depending on whether you enclose a payment. The filing deadline for 2010 returns is April 18, 2011, due to the Emancipation Day holiday in the District of Columbia.
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