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1040EZ - Main Contents


Table of Contents

Before You Fill In Form 1040EZ

Introduction

What's New for 2007

Earned Income Credit (EIC)

You may be able to take the EIC if you earned less than $12,590 ($14,590 if married filing jointly). See the instructions for lines 8a and 8b that begin on page 10.

Mailing Your Return

You may be mailing your return to a different address this year because the IRS has changed the filing location for several areas. If you received an envelope with your tax package, please use it. Otherwise, see Where Do You File? on the back cover.

Telephone Excise Tax Credit

This credit was available only on your 2006 return. If you filed but did not request it on your 2006 return, file Form 1040X using a simplified procedure explained in its instructions to amend your 2006 return. If you were not required to file a 2006 return, see the 2006 Form 1040EZ-T.

What's New for 2008

Earned Income Credit (EIC)

You may be able to take the EIC if you earned less than $12,880 ($15,880 if married filing jointly).

The election to include nontaxable combat pay in earned income for the EIC is scheduled to expire and will not apply for 2008.

Filing Requirements

Introduction

These rules apply to all U.S. citizens, regardless of where they live, and resident aliens.

Do You Have To File?

Were you (or your spouse if filing a joint return) age 65 or older at the end of 2007? If you were born on January 1, 1943, you are considered to be age 65 at the end of 2007.

Yes. Use Pub. 501, Exemptions, Standard Deduction, and Filing Information, to find out if you must file a return. If you do, you must use Form 1040A or 1040.
No. Use Chart A, B, or C on page 7 to see if you must file a return.

Tip
Even if you do not otherwise have to file a return, you should file one to get a refund of any federal income tax withheld. You should also file if you are eligible for the earned income credit.

File electronically
Have you tried IRS e-file? It's the fastest way to get your refund and it's free if you are eligible. Visit www.irs.gov for details.

Exception for children under age 18.   If you are planning to file a tax return for your child who was under age 18 at the end of 2007 and certain other conditions apply, you can elect to include your child's income on your return. But you must use Form 1040 and Form 8814 to do so. If you make this election, your child does not have to file a return. For details, use TeleTax topic 553 (see page 30) or see Form 8814.

  A child born on January 1, 1990, is considered to be age 18 at the end of 2007. Do not use Form 8814 for such a child.

Resident aliens.   These rules also apply if you were a resident alien. Also, you may qualify for certain tax treaty benefits. See Pub. 519 for details.

Nonresident aliens and dual-status aliens.   These rules also apply if you were a nonresident alien or a dual-status alien and both of the following apply.
  • You were married to a U.S. citizen or resident alien at the end of 2007.

  • You elected to be taxed as a resident alien.

    See Pub. 519 for details.

  
Caution
Specific rules apply to determine if you are a resident alien, nonresident alien, or dual-status alien. Most nonresident aliens and dual-status aliens have different filing requirements and may have to file Form 1040NR or Form 1040NR-EZ. Pub. 519 discusses these requirements and other information to help aliens comply with U.S. tax law, including tax treaty benefits, and special rules for students and scholars.

When Should You File?

File Form 1040EZ by April 15, 2008. If you file after this date, you may have to pay interest and penalties. See below.

If you were serving in, or in support of, the U.S. Armed Forces in a designated combat zone, qualified hazardous duty area, or a contingency operation, see Pub. 3.

What if You Cannot File on Time?

You can get an automatic 6-month extension if, no later than the date your return is due, you file Form 4868. For details, see Form 4868.

However, even if you get an extension, the tax you owe is still due April 15, 2008. If you make a payment with your extension request, see the instructions for line 9 on page 15.

What if You File or Pay Late?

The IRS can charge you interest and penalties on the amount you owe.

If you file late, the penalty is usually 5% of the amount due for each month or part of a month your return is late, unless you have a reasonable explanation. If you do, attach it to your return. The penalty can be as much as 25% of the tax due. The penalty is 15% per month, up to a maximum of 75%, if the failure to file is fraudulent. We will charge you interest on the penalty from the due date of the return (including extensions). If your return is more than 60 days late, the minimum penalty will be $100 or the amount of any tax you owe, whichever is smaller.

If you pay your taxes late, the penalty is usually ½ of 1% of the unpaid amount for each month or part of a month the tax is not paid. The penalty can be as much as 25% of the unpaid amount. It applies to any unpaid tax on the return.

Are There Other Penalties?

Yes. Other penalties can be imposed for negligence, substantial understatement of tax, reportable transaction understatements, filing an erroneous refund claim, and fraud. We will charge you interest on these penalties from the due date of the return (including extensions). Criminal penalties may be imposed for willful failure to file, tax evasion, or making a false statement. See Pub. 17 for details.

In addition to any other penalties, the law imposes a penalty of $5,000 for filing a frivolous return. A frivolous return is one that does not contain information needed to figure the correct tax or shows a substantially incorrect tax because you take a frivolous position or desire to delay or interfere with the tax laws. This includes altering or striking out the preprinted language above the space where you sign. For a list of positions identified as frivolous, see Notice 2007-30, 2007-14 I.R.B. 883, available at
www.irs.gov/irb/2007-14_IRB/ar20.html.

Where Do You File?

See the back cover.

Private delivery services.   You can use certain private delivery services designated by the IRS to meet the “timely mailing as timely filing/paying” rule for tax returns and payments. These private delivery services include only the following.
  • DHL Express (DHL): DHL Same Day Service, DHL Next Day 10:30 am, DHL Next Day 12:00 pm, DHL Next Day 3:00 pm, and DHL 2nd Day Service.

  • Federal Express (FedEx): FedEx Priority Overnight, FedEx Standard Overnight, FedEx 2Day, FedEx International Priority, and FedEx International First.

  • United Parcel Service (UPS): UPS Next Day Air, UPS Next Day Air Saver, UPS 2nd Day Air, UPS 2nd Day Air A.M., UPS Worldwide Express Plus, and UPS Worldwide Express.

  The private delivery service can tell you how to get written proof of the mailing date.

Who Can Use Form 1040EZ?

You can use Form 1040EZ if all of the following apply.

  • Your filing status is single or married filing jointly (see below). If you were a nonresident alien at any time in 2007, see Nonresident aliens below.

  • You do not claim any dependents.

  • You do not claim any adjustments to income. Use TeleTax topics 451-453 and 455-458 (see page 30).

  • The only tax credit you can claim is the earned income credit. Use TeleTax topics 601-602, 607-608, and 610 (see page 30).

  • You (and your spouse if filing a joint return) were under age 65 and not blind at the end of 2007. If you were born on January 1, 1943, you are considered to be age 65 at the end of 2007 and cannot use Form 1040EZ.

  • Your taxable income (line 6 of Form 1040EZ) is less than $100,000.

  • You had only wages, salaries, tips, taxable scholarship or fellowship grants, unemployment compensation, or Alaska Permanent Fund dividends, and your taxable interest was not over $1,500.

  • You did not receive any advance earned income credit payments.

  • You do not owe any household employment taxes on wages you paid to a household employee. To find out who owes these taxes, use TeleTax topic 756 (see page 30).

  • You are not a debtor in a chapter 11 bankruptcy case filed after October 16, 2005.

  • You do not owe any alternative minimum tax.

If you do not meet all of the requirements, you must use Form 1040A or 1040. Use TeleTax topic 352 (see page 30) to find out which form to use.

Even if you can use Form 1040EZ, it may benefit you to use Form 1040A or 1040 instead. For example, you can claim the head of household filing status (which usually results in a lower tax than single) only on Form 1040A or 1040. You can claim the retirement savings contributions credit (saver's credit) only on Form 1040A or 1040. Use TeleTax topic 610 (see page 30). Also, you can itemize deductions only on Form 1040. It would benefit you to itemize deductions if they total more than your standard deduction, which is $5,350 for most single people and $10,700 for most married people filing a joint return. Use TeleTax topic 501 (see page 30). But if someone can claim you (or your spouse if married) as a dependent, your standard deduction is the amount entered on line E of the worksheet on page 2 of Form 1040EZ.

Nonresident aliens.    If you were a nonresident alien at any time in 2007, your filing status must be married filing jointly to use Form 1040EZ. If your filing status is not married filing jointly, you may have to use Form 1040NR or 1040NR-EZ. Specific rules apply to determine if you were a nonresident or resident alien. See Pub. 519 for details, including the rules for students and scholars who are aliens.

Single

You can use this filing status if any of the following was true on December 31, 2007.

  • You were never married.

  • You were legally separated, according to your state law, under a decree of divorce or separate maintenance.

  • You were widowed before January 1, 2007, and did not remarry in 2007.

Married Filing Jointly

You can use this filing status if any of the following apply.

  • You were married at the end of 2007, even if you did not live with your spouse at the end of 2007.

  • Your spouse died in 2007 and you did not remarry in 2007.

  • You were married at the end of 2007, and your spouse died in 2008 before filing a 2007 return.

For federal tax purposes, a marriage means only a legal union between a man and a woman as husband and wife. A husband and wife filing jointly report their combined income and deduct their combined allowable expenses on one return. A husband and wife can file a joint return even if only one had income or if they did not live together all year. However, both persons must sign the return. Once you file a joint return, you cannot choose to file separate returns for that year after the due date of the return.

Joint and several tax liability.   If you file a joint return, both you and your spouse are generally responsible for the tax and any interest or penalties due on the return. This means that if one spouse does not pay the tax due, the other may have to. However, see Innocent spouse relief on page 27.

Chart A—For Most People

IF your filing status is . . . THEN file a return if your gross income* was at least . . .
Single $8,750
Married filing jointly** $17,500
*Gross income means all income you received in the form of money, goods, property, and services that is not exempt from tax, including any income from sources outside the United States (even if you can exclude part or all of it).
**If you did not live with your spouse at the end of 2007 (or on the date your spouse died) and your gross income was at least $3,400, you must file a return.

Chart B—For Children and Other Dependents

If your parent (or someone else) can claim you as a dependent, use this chart to see if you must file a return.
In this chart, unearned income includes taxable interest, ordinary dividends, and capital gain distributions. Earned income includes wages, tips, and taxable scholarship and fellowship grants. Gross income is the total of your unearned and earned income.
tip
To find out if your parent (or someone else) can claim you as a dependent, see Pub. 501.
You must file a return if any of the following apply.
  • Your unearned income was over $850.

  • Your earned income was over $5,350.

  • Your gross income was more than the larger of—

 
  • $850, or

  • Your earned income (up to $5,050) plus $300.


 

Chart C—Other Situations When You Must File

You must file a return using Form 1040A or 1040 if any of the following apply for 2007.
  • You received any advance earned income credit payments from your employer. These payments are shown in box 9 of your
    Form W-2.

  • You owe tax from the recapture of an education credit (see Form 8863).

  • You claim a credit for excess social security and tier 1 RRTA tax withheld.

  • You claim a credit for the retirement savings contributions credit (saver's credit) (see Form 8880).

You must file a return using Form 1040 if any of the following apply for 2007.
  • You owe any special taxes, such as social security and Medicare tax on tips you did not report to your employer or on wages you received from an employer who did not withhold these taxes.

  • You owe uncollected social security and Medicare or RRTA tax on tips you reported to your employer or on group-term life insurance.

  • You had net earnings from self-employment of at least $400.

  • You had wages of $108.28 or more from a church or qualified church-controlled organization that is exempt from employer social security and Medicare taxes.

  • You owe tax on a qualified plan, including an individual retirement arrangement (IRA), or other tax-favored account. But if you are filing a return only because you owe this tax, you can file Form 5329 by itself.

Where To Report Certain Items From 2007 Forms W-2, 1098, and 1099

File electronically
IRS e-file takes the guesswork out of preparing your return. You may also be eligible to use Free File to file your federal income tax return. Visit www.irs.gov/efile for details.

If any federal income tax withheld is shown on these forms, include the tax withheld on Form 1040EZ, line 7.
Form Item and Box in Which It Should Appear   Where To Report on Form 1040EZ
W-2 Wages, tips, other compensation (box 1)   Line 1
  Allocated tips (box 8)   See page 9
  Advance EIC payment (box 9)
Right brace
Must file Form 1040A or 1040
  Dependent care benefits (box 10)  
  Adoption benefits (box 12, code T)   Must file Form 1040
  Employer contributions to a health savings account
(box 12, code W)
  Must file Form 1040 if required to file Form 8889 (see the instructions for Form 8889)
  Amount reported in box 12, code R or Z   Must file Form 1040
W-2G Gambling winnings (box 1)   Must file Form 1040
1098-E Student loan interest (box 1)   Must file Form 1040A or 1040 to deduct
1098-T Qualified tuition and related expenses (box 1)   Must file Form 1040A or 1040, but first see the instructions on
Form 1098-T
1099-C Canceled debt (box 2)   Must file Form 1040 if taxable (see the instructions on Form 1099-C)
1099-DIV Dividends and distributions   Must file Form 1040A or 1040
1099-G Unemployment compensation (box 1)   Line 3. But if you repaid any unemployment compensation in 2007, see the instructions for line 3 on page 10
1099-INT Interest income (box 1)   Line 2
  Interest on U.S. savings bonds and Treasury obligations
(box 3)
See the instructions for line 2 beginning on page 9
  Early withdrawal penalty (box 2)   Must file Form 1040 to deduct
  Foreign tax paid (box 6)   Must file Form 1040 to deduct or take a credit for the tax
  Tax-exempt interest (box 8)   See the instructions for line 2 beginning on page 9
1099-LTC Long-term care and accelerated death benefits   Must file Form 1040 if required to file Form 8853 (see the instructions for Form 8853)
1099-MISC Miscellaneous income   Must file Form 1040
1099-OID Original issue discount (box 1)
Right brace
See the instructions on Form 1099-OID
  Other periodic interest (box 2)    
  Early withdrawal penalty (box 3)   Must file Form 1040 to deduct
1099-Q Qualified education program payments   Must file Form 1040
1099-R Distributions from pensions, annuities, IRAs, etc.   Must file Form 1040A or 1040
1099-SA Distributions from HSAs and MSAs*   Must file Form 1040
*This includes distributions from Archer and Medicare Advantage MSAs.

Line Instructions for Form 1040EZ

Introduction

File electronically
IRS e-file takes the guesswork out of preparing your return. You may also be eligible to use Free File to file your federal income tax return. Visit www.irs.gov/efile for details.

Name and Address

Use the Peel-Off Label

Using your peel-off name and address label on the back of this booklet will speed the processing of your return. It also prevents common errors that can delay refunds or result in unnecessary notices. Put the label on your return after you have finished it. Cross out any incorrect information and print the correct information. Add any missing items, such as your apartment number.

Address Change

If the address on your peel-off label is not your current address, cross out your old address and print your new address. If you plan to move after filing your return, use Form 8822 to notify the IRS of your new address.

Name Change

If you changed your name because of marriage, divorce, etc., be sure to report the change to your local Social Security Administration office before you file your return. This prevents delays in processing your return and issuing refunds. It also safeguards your future social security benefits. See page 27 for details. If you received a peel-off label, cross out your former name and print your new name.

What if You Do Not Have a Label?

Print the information in the spaces provided.

Tip
If you filed a joint return for 2006 and you are filing a joint return for 2007 with the same spouse, be sure to enter your names and SSNs in the same order as on your 2006 return.

P.O. Box

Enter your P.O. box number only if your post office does not deliver mail to your home.

Foreign Address

Print the information in the following order: City, province or state, and country. Follow the country's practice for entering the postal code. Do not abbreviate the country name.

Social Security Number (SSN)

An incorrect or missing SSN can increase your tax or reduce your refund. To apply for an SSN, fill in Form SS-5 and return it, along with the appropriate evidence documents, to the Social Security Administration (SSA). You can get Form SS-5 online at www.socialsecurity.gov, from your local SSA office, or by calling the SSA at 1-800-772-1213. It usually takes about 2 weeks to get an SSN once the SSA has all the evidence and information it needs.

Check that your SSN on your Forms W-2 and 1099 agrees with your social security card. If not, see page 27 for more details.

IRS individual taxpayer identification numbers (ITINs) for aliens.   If you are a nonresident or resident alien and you do not have and are not eligible to get an SSN, you must apply for an ITIN. For details on how to do so, see Form W-7 and its instructions. It usually takes about 4-6 weeks to get an ITIN.

   If you already have an ITIN, enter it wherever your SSN is requested on your tax return.

  
Caution
An ITIN is for tax use only. It does not entitle you to social security benefits or change your employment or immigration status under U.S. law.

Nonresident alien spouse.   If your spouse is a nonresident alien, he or she must have either an SSN or an ITIN.

Presidential Election Campaign Fund

This fund helps pay for Presidential election campaigns. The fund reduces candidates' dependence on large contributions from individuals and groups and places candidates on an equal financial footing in the general election. If you want $3 to go to this fund, check the box. If you are filing a joint return, your spouse may also have $3 go to the fund. If you check a box, your tax or refund will not change.

Income

Rounding Off to Whole Dollars

You can round off cents to whole dollars on your return. If you do round to whole dollars, you must round all amounts. To round, drop amounts under 50 cents and increase amounts from 50 to 99 cents to the next dollar. For example, $1.39 becomes $1 and $2.50 becomes $3.

If you have to add two or more amounts to figure the amount to enter on a line, include cents when adding the amounts and round off only the total.

Example.   You received two Forms W-2, one showing wages of $5,009.55 and one showing wages of $8,760.73. On Form 1040EZ, line 1, you would enter $13,770 ($5,009.55 + $8,760.73 = $13,770.28).

Refunds of State or Local Income Taxes

If you received a refund, credit, or offset of state or local income taxes in 2007, you may receive a Form 1099-G.

For the year the tax was paid to the state or other taxing authority, did you file Form 1040EZ or 1040A?

Yes. None of your refund is taxable.
No. You may have to report part or all of the refund as income on Form 1040 for 2007.

Social Security Benefits

You should receive a Form SSA-1099 or Form RRB-1099. These forms will show the total social security and equivalent railroad retirement benefits paid to you in 2007 and the amount of any benefits you repaid in 2007. Use the worksheet on page 10 to see if any of your benefits are taxable. If they are, you must use Form 1040A or 1040. For more details, see Pub. 915.

Worksheet To See if Any of Your Social Security Benefits Are Taxable

Before you begin:

  • If you are filing a joint return, be sure to include any amounts your spouse received when entering amounts on lines 1, 3, and 4 below.

                   
1. Enter the amount from box 5 of all your Forms SSA-1099
and Forms RRB-1099
1.      
2. Is the amount on line 1 more than zero?  
 
There is currently no description available for this image.  For help with this image, please call the IRS.gov Helpdesk at 1-800-876-1715.
No.
Stop
None of your social security benefits are taxable.
 
Yes.
Enter one-half of line 1   2.  
3. Enter your total wages, salaries, tips, etc., from Form(s) W-2. Also, include any taxable unemployment compensation and Alaska Permanent Fund dividends you received (see the instructions for line 3 above)   3.  
4. Enter your total interest income, including any tax-exempt interest   4.  
5. Add lines 2, 3, and 4   5.  
6. If you are:
•Single, enter $25,000
Right brace
  6.  
  •Married filing jointly, enter $32,000
7. Is the amount on line 6 less than the amount on line 5?
 
 
No.
None of your social security benefits are taxable this year. You can use Form 1040EZ.
Do not list your benefits as income.
 
 
Yes.
Stop
Some of your benefits are taxable this year. You must use Form 1040A or 1040.  

Line 1

Wages, Salaries, and Tips

Enter the total of your wages, salaries, and tips. If a joint return, also include your spouse's income. For most people, the amount to enter on this line should be shown on their Form(s) W-2 in box 1. But the following types of income also must be included in the total on
line 1.

  • Wages received as a household employee for which you did not receive a Form W-2 because your employer paid you less than $1,500 in 2007. Also, enter “HSH” and the amount not reported on a Form W-2 in the space to the left of line 1.

  • Tip income you did not report to your employer. But you must use Form 1040 and Form 4137 if: (a) you received tips of $20 or more in any month and did not report the full amount to your employer, or (b) your Form(s) W-2 show allocated tips that you must report as income. You must report the allocated tips shown on your Form(s) W-2 unless you can prove that you received less. Allocated tips should be shown on your Form(s) W-2 in box 8. They are not included as income in box 1. See Pub. 531 for more details.

  • Scholarship and fellowship grants not reported on a Form W-2. Also, enter “SCH” and the amount in the space to the left of line 1. However, if you were a degree candidate, include on line 1 only the amounts you used for expenses other than tuition and course-related expenses. For example, amounts used for room, board, and travel must be reported on line 1.

Caution
You must use Form 1040A or 1040 if you received dependent care benefits for 2007. You must use Form 1040 if you received employer-provided adoption benefits for 2007.

Missing or Incorrect Form W-2?