Difference Between 1040 and 1040ez
Many people do not fully understand why they must file a standard Form 1040, sometimes even with 2 or 3 schedules, and why their neighbor got to do the 'easy form'. The 'easy form' is the 1040 EZ. The Form 1040EZ is called such due to the fact it is only six sections long. In order to file your income tax return with the 1040EZ, you must meet certain qualifications. This is unlike the standard 1040, which accommodates most tax filing situations.
The 1040EZ requires that the taxpayer have no dependents, they must file as single or as married and filing jointly, the income must be less than $50,000 and come from specific sources, the earned interest income must be less than $1,500, there must be no other credits besides the earned income credit, there cannot be any adjustments to the income, and the standard deduction must be taken (no itemizations). This form cannot be filed if the taxpayer has collected any capital gains or losses.
The Form 1040, allows for itemizations, any number of dependants, availability for numerous tax credits, and a filing status of single, married, married and filing separately, or married and filing jointly.