How to Fill in Form 1040 EZ

Everyone hates to fill out the tax forms because they're so difficult to understand. The easy to understand instructions tend to be complicated. The reason is that the writer has to address all possible issues. If you have simple tax forms to calculate, you're in luck. For those people that have nothing more than W-2 forms, it's not as difficult to figure out federal taxes as you may think.

Step 1:

Use a 1040 EZ tax form for your taxes. As long as you have nothing to itemize such as house mortgage, no self-employment income, interest over $1500 or other items beyond your W-2's this is the best form to use. You need to use a form 1040 if you have other dependants besides your spouse and yourself. If you'd like a copy of the 2008 1040 EZ form, click here

Step 2:

Fill in your name, address, social security number and your filing status. If you're filing alone, check single. If you have a spouse, check married. If your spouse is of the same sex, you file single since the federal tax form doesn't recognize that as a marriage. In this case, your state recognizes the union; you'll have a different filing status for your state. Mark yes or no on the box to contribute to the election fund.

Step 3:

Gather all the W-2's you have and total the amount that you made. If you're filing married, add your spouse's W-2 totals to that form. The amount that you use on your form for your wages is in box 1. Write that amount on your 1040 tax form on line 7. While you have the forms in front of you, total the amount of federal tax withheld on all the forms. This amount appears on you W-2 tax form in box 2. Also, if you have state tax, box 17, or county tax withheld, box 19, total those also, write the amounts on a paper, and set it aside.

Step 4:

Write down the total for your W-2 federal wages on line 1. List any interest that you have on line 2. Enter any unemployment on line 3. Add lines 1, 2 and 3 together and put the amount on line 4.

Step 5:

Check to see if you qualify as your own dependant. If your parents or someone else took you as a dependant and paid over half your living expense, you don't qualify. If they took you as a dependant and you paid over half your expenses, you need to discuss the matter with them since you both can't use you as an exemption. If your spouse files with you, see if someone else took her as a dependant. If you or both of you claim yourself as a dependant, put 8950 on the line to the side if you're single and 17,900 if you're married filing jointly. Subtract this amount from line 4.

Step 6:

Put in the total amount of federal income tax withheld on line 7. You totaled these amounts in step 3. See if you qualify for earned income credit. If your income is less low, it's worth it to look at the qualifying amounts in the instructions. Look in the left column and find your income. On the right side, you can check your filing status, married or single. If your income is low enough, you should show an earned income credit. Write the amount on line 8a. On line 8b, write any non-taxable combat pay.

Step 7:

See if you get a stimulus rebate for your 2008 taxes. If you or your spouse were in the military, you can't get the stimulus rebate. You qualify if you didn't receive a stimulus payment or it was less than 600 dollars for those filing single for 2007 and $1200 filing married. Add line 7, 8a and 9 together and put the answer on line 10. Look in the back of the instruction booklet for the tax chart. Use the answer on line 6 to find your tax. Put the tax owed on line 11. Subtract the smallest of 10 or 11 from the larger. If line 11 is larger, you owe money. If line 10 is larger, you get money back. If you want it to go in your bank, enter your bank account numbers. List anyone you want to have handle any discussion on your taxes and their phone. Sign and date the return. Mail it in with a check or money order if you owe.