How to File Federal Form 1040EZ for Tax Year 2018

The new Form 1040 for tax year 2018 introduced a redesigned format that replaced both Form 1040EZ and 1040A. The Internal Revenue Service aimed to simplify the process for individual taxpayers by consolidating multiple forms into a single form. This change was part of a broader effort to make federal tax filing more straightforward and less time-consuming for most individuals.

The shift from prior years to the new form represented a major structural update in how taxpayers report income and claim deductions. Instead of separate forms for different levels of complexity, everyone now files using a single Form 1040. The update also aligned with tax code revisions under the Tax Cuts and Jobs Act, reducing confusion among taxpayers.

This guide is designed for individuals with simple federal tax situations, such as first-time filers and joint filers with basic income sources. It specifically helps those transitioning from the Form 1040EZ for tax year 2018 understand the new process. The purpose is to guide beginners in completing their returns accurately, confidently, and in compliance with updated filing requirements.

What’s New for the 2018 Tax Year and Federal Tax Changes

The 2018 tax year marked a turning point for federal tax filing as the IRS introduced a redesigned Form 1040 to simplify reporting. This section outlines the most significant updates from the Tax Cuts and Jobs Act (TCJA) and explains how they impact taxpayers, including individuals and joint filers. The new rules influence income, deductions, and tax credits, reshaping how most people prepare their tax returns.

Higher Standard Deduction

The IRS significantly increased the standard deduction for all filing status options, reducing the need to itemize deductions.

Single and married taxpayers filing jointly benefit the most, with deductions nearly doubling compared to prior years.
This change simplifies the filing process for most taxpayers, directly affecting taxable income and the overall federal income tax owed.

Elimination of Personal Exemptions

The TCJA eliminated personal and dependent exemptions, marking a significant shift from previous years.
Instead, higher deductions and expanded tax credits now offset the loss of exemptions for dependents.
This adjustment simplifies calculations and encourages the use of the standard form over older tax forms, such as Form 1040EZ, for tax year 2018.

Expanded and New Tax Credits

The Child Tax Credit was doubled, and a new Credit for Other Dependents was introduced to expand eligibility for this credit.
These updates help families reduce their calculated tax and improve refund potential under the new form.
Additional credits, such as the Earned Income Credit, remain vital for low- to moderate-income taxpayers.

Impact on Individual and Joint Filers

Single and married filing jointly filers experience more straightforward calculations for taxable income and total tax payments.
Joint filers benefit from combined employment wages, interest income, and mortgage interest payments adjustments.
These updates reduce the need for complex itemized deductions, helping most taxpayers file more efficiently.

Who Benefits the Most

Taxpayers with basic tax situations, W-2 employment wages, and no complex self-employment taxes gain the most significant advantage.
Filers claiming student loan interest deduction or educator expenses also benefit from simplified adjustments.
The 2018 changes primarily favor standard filers over those with multiple deductions or unreimbursed employee expenses.

Overall, the new form for the 2018 tax year made filing more accessible by consolidating tax forms and removing outdated complexities. The updated structure helps taxpayers report income, claim tax credits, and calculate refunds with less confusion than before. These changes modernized the federal filing process and continue to influence how Americans manage their tax return today.

Step-by-Step Guide to Completing Form 1040 (Including Form 1040EZ Transition)

The Form 1040 process became more streamlined in 2018, replacing the Form 1040EZ and older versions with a single, simplified layout. To help you file confidently, here’s a step-by-step breakdown that covers preparation, entry details, and how to ensure accuracy at every stage. Each step is directly connected to real filing actions and the needs of ordinary taxpayers under the new structure.

Preparation Before Filing

Before starting your tax return, gather all W-2s, 1099s, and identification documents to ensure accuracy in reporting. Include proof of interest income, unemployment compensation, and student loan interest payments. Prepare records for mortgage interest payments, charitable contributions, and real estate taxes, as applicable. Keep your prior-year federal income tax return nearby to verify your Adjusted Gross Income (AGI), which the IRS uses to confirm your identity when e-filing. Finally, collect details for dependents and ensure that their names and Social Security numbers match official records to prevent filing delays.

Personal Information and Filing Status

When filling out the Form 1040, enter personal information carefully to avoid rejections or processing delays. Select your correct filing status from the five filing status options: Single, Married Filing Jointly, Married Filing Separately, Head of Household, or Qualifying Widow. Joint filers can combine income, while separate filers must report only their own earnings. Review your spouse’s income and verify the combined totals when filing jointly to prevent inconsistencies. Always confirm your filing status since it determines your standard deduction, credit eligibility, and overall federal tax liability.

Dependents and Credits

Add dependents accurately to claim tax credits like the Child Tax Credit or the Earned Income Credit, which can increase your tax refund. Provide correct dependent details to ensure proper calculated tax and eligibility for education-related deductions. Confirm that dependents meet IRS qualifications to avoid issues with credits or refunds. Keep in mind that dependents’ taxable scholarships or taxable grants may influence your total tax liability, so all income sources should be properly disclosed.

Income and Adjusted Gross Income

Report all employment wages, interest income, and alimony payments using accurate figures from official documents. Include taxable interest, unemployment compensation, Alaska Permanent Fund dividends, and any self-employment taxes as applicable. Carefully calculate your Adjusted Gross Income (AGI), which determines your eligibility for key deductions and tax credits. Add student loan interest deduction and educator expenses under common adjustments if applicable. Use additional schedules for extra income types, such as state income, sales taxes, or earnings from a foreign address.

Deductions and Taxable Income

Apply the appropriate standard deduction based on your filing status—single, married, or head of household. Consider itemizing deductions for eligible expenses, such as medical and dental expenses or unreimbursed employee expenses, when they exceed your standard deduction amount. Include mortgage interest payments, traditional IRA contributions, and charitable contributions if you opt to itemize. Recognize that most taxpayers now benefit from the higher standard deduction introduced under the new form. Finally, calculate your taxable income by subtracting your deductions from total revenue, establishing your base for federal tax.

Tax Calculation and Credits

Use the official IRS tax tables to determine your calculated tax based on your taxable income. Apply any available tax credits, such as education credits, dependent credits, or retirement savings credits, to reduce your overall tax owed. Review the IRS website to confirm updated credit limits and amounts specific to the tax year. Before submission, make sure your total tax payments match your reported income and claimed credits to ensure your return is processed without errors.

Payments, Refunds, and Calculating Refunds

Record all total tax payments made through payroll withholding, estimated costs, or other forms throughout the year. Compare your total value paid against your calculated tax to determine whether you owe money or qualify for a tax refund. Use the IRS “Where’s My Refund?” tool to monitor your refund status after e-filing. Understand that calculating refunds accurately depends on correctly reported income, credits, and federal tax withholdings. Double-check your bank account information to receive electronic refunds quickly and securely.

By following these steps, taxpayers can complete the Form 1040 accurately and confidently as they transition from Form 1040EZ. This process ensures precise taxable income reporting, maximizes tax credits, and minimizes errors that delay refunds. With preparation and attention to detail, you can file efficiently and remain compliant with IRS requirements for the 2018 tax year.

How to File Your 2018 Tax Return and E-Filing Options

Filing your 2018 tax return became simpler and more secure with expanded e-filing options introduced by the IRS. Whether you prefer to file electronically or by paper, following the right steps ensures your return is processed quickly and accurately. Below is a detailed breakdown of how to file, who qualifies for free filing programs, and how to stay compliant with IRS requirements.

E-Filing Benefits

The IRS encourages e-filing because it delivers faster refunds, provides built-in error checks, and reduces paper waste.
E-filing minimizes delays caused by mailing and manual data entry, offering instant confirmation once your Form 1040 is submitted.
This method increases accuracy since most tax forms and calculations are automatically verified by IRS-approved software.

How to E-File Through the IRS Free File System

Visit the official IRS website and access the Free File section under the “File Your Taxes for Free” page.
Choose an IRS partner software based on your income and filing status for the tax year 2018.
Follow the step-by-step interview process that walks you through entering your income, deductions, and tax credits.
Review all entries carefully before final submission and keep a digital copy of your confirmation notice.
Expect your tax refund within approximately 21 days if you use direct deposit.

Eligibility for Free E-Filing Programs

Taxpayers with an Adjusted Gross Income (AGI) of $66,000 or less for tax year 2018 qualify for the Free File Software option.
Those above the income threshold can still use Free File Fillable Forms, an online version of paper tax forms.
First-time filers benefit from guided assistance, ensuring they accurately report their income, calculate deductions, and claim credits.
The system also assists with calculating earned income credits and itemized deductions for eligible taxpayers.

When Paper Filing May Be Required

Paper filing applies to filers who lack internet access, prefer manual entry, or need to include specific attachments that are not supported by e-filing.
Download the Form 1040 and related schedules from the IRS website and print them clearly in black ink.
Mail the completed forms to the correct IRS processing center based on your state of residence and payment status.
Always include Form 1040-V with your payment if you are mailing it with your return.

Keep Copies for Your Records

Maintain copies of your Form 1040, W-2s, and all supporting documents for at least three years.
Save both electronic and printed versions of your filing confirmation for reference during audits or future filings.
Record your federal tax payments, refund confirmation numbers, and any correspondence from the IRS.

Filing your 2018 tax return electronically is the fastest and most reliable way to meet IRS deadlines and secure your refund promptly. However, if you must mail your return, following the correct address and documentation procedures ensures your submission remains compliant. Whether filing online or by paper, accuracy, organization, and proper recordkeeping are the keys to a smooth and stress-free tax season.

Payment and Refund Information for Federal Tax Returns

Managing your federal tax payments and refunds efficiently ensures compliance and helps avoid unnecessary penalties or delays. The IRS provides multiple options for paying taxes owed and several convenient ways to receive your refund. Below is a straightforward guide outlining your payment methods, due dates, and refund procedures for the 2018 tax year.

Payment Methods for Federal Tax Obligations

The IRS offers several secure options for paying federal tax if you owe money after filing your Form 1040. You can make payments through Direct Pay, which allows funds to be withdrawn directly from your checking or savings account without extra fees. Taxpayers may also send a check or money order along with Form 1040-V, ensuring it is postmarked before the filing deadline. Always keep a copy of your payment confirmation or mailing receipt for your personal records and future verification in case of discrepancies.

Electronic Payment Options

The IRS Direct Pay system enables taxpayers to pay directly from their bank account, offering a convenient and fee-free solution. For individuals or joint filers who need more flexibility, the Electronic Federal Tax Payment System (EFTPS) allows scheduled and recurring payments for both individuals and businesses. Payments made by debit or credit card are also accepted, though minor processing fees may apply when using approved third-party processors. Overall, electronic payments are faster, more secure, and provide immediate confirmation of payment receipt—reducing the chances of late penalties or posting errors.

Due Dates, Extensions, and Joint Filer Guidance

For the 2018 federal tax year, the original payment deadline was April 15, 2019, with a filing extension available until October 15, 2019. Joint filers must ensure that both spouses’ details are accurate when making combined payments or claiming refunds to prevent mismatched records. Couples married and filing jointly should use a single payment method to avoid duplicate submissions and confusion during processing. It is important to note that extensions do not automatically delay payment obligations, and interest may accrue if total tax payments are not made by the April deadline.

Calculating Refunds and Direct Deposit Benefits

To determine your tax refund, compare your total tax payments made through withholdings and estimates with your calculated tax liability. If you overpaid, the IRS will issue a refund for the difference; if you underpaid, you will owe the IRS the amount of the underpayment. Opting for direct deposit ensures you receive your refund faster—typically within 21 days when you e-file. This method is safer than receiving a paper check and allows you to split your refund among multiple accounts for budgeting or savings purposes.

Extensions and Payment Responsibilities

When you request an extension, it only grants additional time to file your tax return, not to pay your federal tax. You must still estimate and pay any expected balance by the April due date to avoid penalties and interest. Use Form 4868 to file for an extension while making an estimated payment at the same time. Always verify your payment and filing status through the official IRS website to ensure your records are up to date and that all obligations have been adequately fulfilled.

By understanding and utilizing these payment and refund options effectively, taxpayers can manage their 2018 federal tax responsibilities more efficiently. Choosing electronic payments and direct deposit not only saves time but also increases security and reliability. Staying organized, informed, and compliant helps guarantee that your tax return is processed smoothly and that your refund reaches you without unnecessary delays.

Required Schedules and Attachments for the New Form

The 2018 tax year introduced several new schedules and attachments for the redesigned Form 1040, replacing the simplicity of the older Form 1040EZ. While the new format streamlined basic returns, certain taxpayers with additional income, deductions, or credits must include specific schedules to ensure accurate reporting. Below is a detailed explanation of when these schedules apply and how they differ from prior years.

When Simple Filers Need Extra Schedules

Even if you have a straightforward tax return, you may need to attach additional schedules if your income or deductions extend beyond standard reporting lines. For example, filers with unemployment compensation, self-employment income, or student loan interest deductions must include the relevant schedule. Joint filers or those claiming tax credits beyond the Child Tax Credit must verify whether additional forms are required. The IRS added these schedules to make the main form shorter and easier for most taxpayers, while still allowing flexibility for complex cases.

Schedule 1: Additional Income or Adjustments

Schedule 1 applies when you report additional income or adjustments not listed on the main Form 1040. This includes items like unemployment compensation, alimony payments, prize winnings, and self-employment earnings. Adjustments such as the student loan interest deduction, educator expenses, and traditional IRA contributions are also reported in this section. Even if your taxable income is straightforward, failing to include this schedule when necessary may result in delays in processing or reduce your eligibility for a refund.

Schedule 2: Additional Taxes

You must attach Schedule 2 if you owe self-employment taxes, Alternative Minimum Tax (AMT), or taxes on early retirement withdrawals. It captures obligations that exceed regular federal tax calculations shown on the main form. Taxpayers with higher incomes or multiple income sources, such as married filing jointly couples with combined business earnings, commonly use this schedule. Its inclusion ensures your calculated tax matches the IRS’s total assessment, avoiding future penalties.

Schedule 3: Credits

Schedule 3 is used to claim nonrefundable tax credits that reduce your total federal tax liability but cannot generate a refund. Common credits include the Education Credit, Foreign Tax Credit, and Residential Energy Credit. These apply when you have qualifying eligible expenses or foreign income adjustments that affect your total taxable income. Understanding this schedule is vital for joint filers or dependents with higher educational costs or foreign income exposure.

Schedules 4–6: Other Payments, Foreign Address, or Designee

Schedules 4–6 cover specialized reporting and additional payment entries. Schedule 4 applies to other taxes, such as investment income taxes or unreported self-employment taxes. Schedule 5 handles other payments, including estimated tax payments and withholdings not reflected elsewhere. Schedule 6 is used for those with a foreign address or those authorizing a third-party designee to discuss the tax return with the IRS. Each of these schedules supports specific, less common filing needs but plays a vital role in ensuring accuracy for taxpayers with unique circumstances.

Quick Checklist by Filing Status Options

Single filers: You may only need Schedule 1 if you are claiming student loan interest or educator expenses.
Married filing jointly: You often include Schedule 2 for combined self-employment taxes or Schedule 3 for shared education credits.
Head of household: You might need Schedule 3 if you are claiming dependent-related credits or childcare expenses.
Married filing separately: You may file Schedule 1 or Schedule 2, depending on your separate income or business activity.
Qualifying widowers: Use Schedule 5 if you made estimated federal tax payments during the tax year.

Differences from Form 1040EZ in Prior Years

Unlike the Form 1040EZ used in prior years, the new Form 1040 separates complex entries into schedules instead of crowding them onto one form. This means simple filers can ignore irrelevant sections, while those with additional income, deductions, or credits can attach only the schedules they need. The Form 1040EZ did not allow itemized deductions, adjustments for AGI, or credits beyond basic withholdings—limitations the new form removed. This redesign provides flexibility, allowing every filer, from first-timers to seasoned taxpayers, to report accurately without unnecessary complexity.

By understanding which schedules and attachments apply to your 2018 Form 1040, you ensure that your federal tax return is complete and compliant. Attaching the proper schedules not only prevents IRS delays but also ensures that you receive every credit or deduction to which you are entitled. This system replaces the rigid simplicity of the Form 1040EZ with a more innovative, modular approach designed to fit all types of filers.

FAQs

What happened to Form 1040EZ?

The IRS discontinued Form 1040EZ, effective in tax year 2018, and merged it with the standard Form 1040. The new form replaced 1040EZ and 1040A to simplify filing for all taxpayers, regardless of income type. This redesign aimed to reduce confusion by consolidating multiple forms into one universal document. Now, both simple and complex returns are filed using a single streamlined Form 1040.

What’s the difference between Form 1040 and the new form?

The new Form 1040, introduced in 2018, is shorter and more modular than its predecessor. Instead of including every possible line item, it uses schedules for additional information when needed. This means most taxpayers only complete the main form, while those with more complex income or deductions attach specific schedules. The redesign also aligns with major updates to the Tax Cuts and Jobs Act (TCJA).

How do I determine my filing status?

Your filing status depends on your marital situation and household responsibilities as of December 31, 2018. The main filing status options are: Single, Married Filing Jointly, Married Filing Separately, Head of Household, and Qualifying Widow. Your choice affects your standard deduction, tax rate, and eligibility for certain credits. Review IRS guidelines carefully, especially if you support dependents or share income with a spouse.

Do I need to itemize deductions?

Most taxpayers do not need to itemize deductions for the 2018 tax year because the standard deduction nearly doubled under the TCJA. However, you should consider itemizing if your deductible expenses—such as mortgage interest payments, medical expenses, or charitable contributions—exceed the standard amount. Choosing between standard or itemized deductions depends on which option lowers your taxable income most effectively.

How do I calculate my refund?

To calculate your tax refund, compare your total tax payments from withholdings and estimated payments to your calculated tax owed. If you paid more than required, the difference becomes your refund; if less, you’ll owe the IRS. You can use IRS tax tables or tax software to verify your numbers. Opting for direct deposit ensures your refund arrives faster and more securely.

Can I file electronically for 2018?

Yes, you can still e-file your 2018 Form 1040 through IRS-approved tax software or authorized providers. E-filing is faster, safer, and includes built-in accuracy checks that reduce the chance of errors. If your Adjusted Gross Income (AGI) was $66,000 or less, you qualified for the IRS Free File program. Even for prior returns, e-filing ensures efficient processing and quicker tax refunds.

Can I still file for prior years?

Yes, you can file prior-year returns for up to three years after the original due date. For example, 2018 returns can generally be filed until April 2022 to claim a refund. You must use the appropriate year’s Form 1040 and instructions, which are available on the IRS website. Filing old returns helps recover unclaimed refunds, verifies your records, and maintains compliance with federal tax laws.

Checklist for How to File Federal Form 1040EZ for Tax Year 2018