The IRS offers three main forms which are the primary forms in filing your taxes. They are the Form 1040, 1040A and 1040EZ. If you take certain credits or itemize your deductions then you must use the form 1040.
If you have dependents and your income comes from sources other than wages, salaries, tips, some grants, unemployment, Alaska funds, and taxable interest is over $1500 then you may use the 1040A form.
The 1040EZ form is the quickest and easiest to file with, but it is basically only for people who are single or married filing jointly with no dependents, whose income comes from a job or other common source.
The 1040EZ tax form was introduced in 1982 at a time when most people had jobs, as a way for young taxpayers to speed-up their filings and thus increase participation. As non-traditional sources of work have become more prevalent, use of the form has gone down, as many people have sideline businesses as well as a regular job.
Only if you meet the above mentioned conditions can you file a 1040EZ. If you make money at your own business and will claim expenses then you will not be able to file this form.
Used mainly by young people
1040EZ is most commonly used by students and young people who have gotten their first job and will be receiving a small refund. If you use an online source to file your taxes then the 1040EZ tax form will be automatically chosen by the software when you file your return.
A high school student or young adult with a part time job will typically file a 1040EZ form, as only his or her wages need to be considered, and there will be a small refund coming if the appropriate tax deductions were taken.
Young people typically don't own real estate, or need tax shelters, or have foreign income. But again, many young people are doing things like selling online where all the money goes directly to the seller. So if this money is going to be declared to the IRS, a young person will be faced with more difficult forms to fill out the first time he or she files taxes.
Best way to file
Taxpayers who anticipate a refund are urged to file electronically as this cuts down the time to receive your refund as opposed to waiting approximately two months for paper tax returns. TurboTax 2014 online the ideal software to use for Federal and State income tax returns.