What is the Difference Between IRS 1040 and 1040A and 1040EZ?
🆚 Go to Comparative Table 🆚The IRS offers three different forms for individual taxpayers to report their income: Form 1040, Form 1040A, and Form 1040EZ. Each form is designed for specific tax situations and levels of complexity. The main differences between these forms are:
- Form 1040EZ: This is the simplest form and is suitable for taxpayers with a simple tax situation, such as single or married filing jointly, under age 65, no dependents, interest income below $400, and income or combined incomes below $50,000. It is meant for individuals who don't take credits or deductions.
- Form 1040A: This form is more complex than the 1040EZ but still offers more room for tax breaks than the standard Form 1040. It falls somewhere in between the standard Form 1040 and Form 1040EZ in terms of complexity. It allows for capital gain distributions, IRA or student loan adjustments to income, and other income sources like pensions, annuities, and capital gains distributions, but no other capital gains or losses. However, it limits the amount of deductions and credits taxpayers can claim compared to the standard Form 1040.
- Form 1040: This is the standard tax return form that most individual taxpayers use every year. It covers all types of income, deductions, and credits, and is more comprehensive than the 1040A or 1040EZ forms. It is required for taxpayers with self-employment income, tips not reported to the employer, income from rental properties, or income from other sources like partnerships, S corporations, estates, or trusts.
As of the tax year 2018, the IRS no longer accepts Forms 1040EZ and 1040A. Instead, taxpayers now use the consolidated Form 1040, which was simplified in 2018.
Comparative Table: IRS 1040 vs 1040A vs 1040EZ
The IRS forms 1040, 1040A, and 1040EZ are used to report individual income tax returns in the United States. There are differences between these forms, and choosing the correct form depends on the taxpayer's situation. Here is a table summarizing the differences between these forms:
| Feature | Form 1040EZ | Form 1040A | Form 1040 |
|---|---|---|---|
| Filing Status | Single or Married Filing Jointly, no dependents | Single, Married Filing Jointly, Married Filing Separately, Head of Household, or Qualifying Widower | Single, Married Filing Jointly, Married Filing Separately, Head of Household, or Qualifying Widower |
| Income Limit | Under $50,000 | Under $50,000 | No income limit |
| Interest Income Limit | Below $400 | No limit | No limit |
| Capital Gain Distributions | None allowed | Allowed, but no other capital gains or losses | Allowed |
| Itemized Deductions | Not allowed | Not allowed | Allowed |
Form 1040EZ is the simplest form and can be used by single or married couples filing jointly with no dependents, income under $50,000, and interest income below $400. Form 1040A allows for more tax breaks than Form 1040EZ, such as childcare, education, and retirement savings, but it is limited in the number of deductions and credits it allows compared to Form 1040. Form 1040 is the most detailed and complex form, allowing taxpayers to report all types of income, deductions, and credits.
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