U.S. 1040EZ Tax Estimator Overview
The U.S. 1040EZ is the most simplified tax form offered by the IRS. It is for taxpayers with relatively straightforward finances who do not itemize deductions, own a business, have substantial investment earnings or otherwise need the more complex 1040A or 1040 forms.
While the 1040EZ is simple to use, you still don't know how much you're going to owe in taxes for the year until you actually complete it. Most people don't do that until tax season comes around in early spring, often not until the April 15 deadline.
The 1040EZ Tax Estimator allows you to run the same calculations now that you'd do with the 1040EZ form later. That way, if you know what your income, withholding, filing status, unemployment payments and the like are going to be, you can find out if you're on track to receive a refund or if not, how much of a tax bill you're likely to face. If the latter, you can start saving now to be able to cover it, rather than getting hit with a nasty surprise come April.
The calculator is updated annually, so the tax brackets, standard deduction, individual exemptions and such are accurate for the current year.
To use 1040EZ, all of the following must apply to you:
- Your taxable income is less than $100,000
- You are single or married filing jointly
- You have no dependants
- Your only income is wages, salaries, tips, unemployment compensation and no more than $1,500 in interest earnings. Alaska permanent fund dividends are allowed as well.
You may not use Form 1040EZ if:
- You have income from alimony, dividends, child support or sources other than the ones named above
- You are self-employed
- If you are receiving a credit for health insurance premiums under the Affordable Care Act
- You wish to claim any income adjustments other than the earned income credit, such as for student loans or contributions to a retirement account.
- You are in Chapter 11 bankruptcy
- You owe taxes on the employment of a household employee, such as a housekeeper
- If your employer did not withhold Social Security or Medicare taxes.
Other restrictions may apply. See the official IRS instructions for Form 1040EZ for further information.
Using the 1040 EZ Tax Estimator
You will need to enter your total earnings for the year (actual or projected), as well as any taxable interest and unemployment compensation you expect to receive, along with the total amount of federal income tax you are having withheld for the year.
The calculator will automatically enter your standard deduction and personal exemption, and display your total taxable income and estimated federal tax bill. Use the "View Report" button to view a full summary.