There’s a lot to be said for simplifying your life. Shorten your commute, stop unnecessary spending, downsize…whatever your pleasure may be for keeping things simple, it’s almost always rewarding. You end up with more time to enjoy the things that really matter: time with loved ones and friends, money to put away for the future or for very special purchases, or even just peace of mind.
The 1040 EZ: A Simple Form for a Simple Life
Well this can be said for taxes too! When your financial life is simple, your tax form is simple. The IRS 1040EZ is for taxpayers who don’t have a lot of fancy financial things going on and simpler life: no kids, no mortgage, no home business, just a job and a savings account. That means hardly any tax deductions, tax credits, worksheets, schedules or other IRS paperwork to deal with. The 1040EZ is the IRS’s shortest and easiest tax return form. You get the standard deduction and that’s it.
The 1040EZ Tax Table is Actually Useful
The 1040EZ tax tables that come with this very simple tax form are actually helpful because it’s quite easy to estimate your taxes when your income is not affected by many tax deductions and credits. Take your income, including any interest income you made from a savings account, and subtract the standard deduction. The number you get is the one you use when you consult the 1040EZ tax table.
Go to the 1040EZ tax table on the IRS website or in the printed instructions you get when you get the paper version at your local library or post office. Here’s the link for the IRS online version of the most recent 1040EZ tax table. Make sure you’re using the table for the current year, or the year for which you’re doing your taxes.
Only One 1040EZ Tax Table is For You
Don’t be alarmed when you see how many pages there are in the 1040EZ tax table! The IRS just prints out every possible income level, starting at $0 and up to a gazillion dollars. Just find the one that you need: the adjusted gross income you arrived at by subtracting the standard personal deduction from your total income
(W2 + 1099-INT) – standard deduction = adjusted gross income (AGI)
The AGI is what you need to use the 1040EZ tax table. Simply keep scrolling down the list of income levels until you hit yours and that’s your tax.
Of course you won’t be done yet because you probably had some money taken out of your paychecks all year (withholding). Then you take the number you found on the tax table and subtract that amount found on your W2 and perhaps a few other adjustments and you’re done.
By the way, why would you pay someone to do this for you? With the IRS form downloaded and printed out from the IRS website, and by consulting the 1040EZ tax table online (link above) you can do your own taxes in about 10 minutes, if your financial life is very simple.