| Instructions for Form 1040EZ |
2003 Tax Year |
1040EZ - Main Contents
This is archived information that pertains only to the 2003 Tax Year. If you
are looking for information for the current tax year, go to the Tax Prep Help Area.
Before You Fill In Form 1040EZ
For details on these and other changes for 2003 and 2004, see Pub. 553.
The tax rates of 27%, 30%, 35%, and 38.6% have been reduced to 25%, 28%, 33%, and 35%, respectively. For most people, the
10% tax rate applies to
the first $7,000 of taxable income (the first $14,000 if married filing jointly). These changes are reflected in the Tax Table
that begins on page 24.
Married People — Increased Tax Benefits
Standard Deduction Increased.
If you file a joint return and both you and your spouse were under age 65 and not blind at the end of 2003, your maximum
standard deduction has
increased to $9,500 (twice that of single filers). This change is reflected on Form 1040EZ, line 5, and on the worksheet on
the back of the form. If
you or your spouse were age 65 or older or blind at the end of 2003, your maximum standard deduction is more than $9,500.
But you must use Form 1040A
or 1040 to get the larger amount.
More Income Taxed at 15%.
If you file a joint return, the maximum taxable income taxed at the 15% rate has increased to twice that of single
filers. This change is reflected
in the Tax Table that begins on page 24.
A third party designee can now ask the IRS for copies of notices or transcripts related to your return. Also, the authorization
can now be revoked.
See Third Party Designee on page 20.
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.
You may be able to take this credit if you earned less than $11,230 ($12,230 if married filing jointly). See the instructions
for line 8 that begin
on page 15.
Parent of a Kidnapped Child.
The parent of a child who is presumed by law enforcement authorities to have been kidnapped by someone who is not
a family member may be able to
take the child into account in determining his or her eligibility for the head of household or qualifying widow(er) filing
status, deduction for
dependents, child tax credit, and the earned income credit (EIC). For details, use TeleTax topic 357 (see page 6) or see Pub. 501
( Pub. 596 for the EIC).
Do Both the Name and Social Security Number (SSN) on Your Tax Forms Agree With Your Social Security Card?
If not, your exemption(s) and any earned income credit may be disallowed, your refund may be delayed, and you may not receive
credit for your
social security earnings. If your Form W-2, Form 1099, or other tax document shows an incorrect name or SSN, notify your employer
or the form-issuing
agent as soon as possible to make sure your earnings are credited to your social security record. If the name or SSN on your
social security card is
incorrect, call the Social Security Administration at 1-800-772-1213.
If a taxpayer died before filing a return for 2003, the taxpayer's spouse or personal representative may have to file and
sign a return for that
taxpayer. A personal representative can be an executor, administrator, or anyone who is in charge of the deceased taxpayer's
property. If the deceased
taxpayer did not have to file a return but had tax withheld, a return must be filed to get a refund. The person who files
the return must enter
“DECEASED,” the deceased taxpayer's name, and the date of death across the top of the return. If this information is not provided, the
processing of your return may be delayed.
If your spouse died in 2003 and you did not remarry in 2003, or if your spouse died in 2004 before filing a return for 2003,
you can file a joint
return. A joint return should show your spouse's 2003 income before death and your income for all of 2003. Enter “Filing as surviving spouse” in
the area where you sign the return. If someone else is the personal representative, he or she must also sign.
The surviving spouse or personal representative should promptly notify all payers of income, including financial institutions,
of the taxpayer's
death. This will ensure the proper reporting of income earned by the taxpayer's estate or heirs. A deceased taxpayer's social
security number should
not be used for tax years after the year of death, except for estate tax return purposes.
Claiming a Refund for a Deceased Taxpayer.
If you are filing a joint return as a surviving spouse, you only need to file the tax return to claim the refund.
If you are a court-appointed
representative, file the return and attach a copy of the certificate that shows your appointment. All other filers requesting
the deceased taxpayer's
refund must file the return and attach
Form 1310.
For more details, use TeleTax topic 356 (see page 6) or see Pub. 559.
Not later than April 15, 2004. If you file after this date, you may have to pay interest and penalties. See below.
If you served in, or in support of, the Armed Forces in a designated combat zone or qualified hazardous duty area (for example,
you were in
Afghanistan, Bosnia, Kosovo, or Persian Gulf area), see Pub. 3.
What if You Cannot File on Time?
You can get an automatic 4-month extension if, no later than April 15, 2004, you either file for an extension by phone or you file
Form 4868. For details, including how to file by phone, see Form 4868.
However, even if you get an extension, the tax you owe is still due April 15, 2004. If you make a payment with your extension
request, see the
instructions for line 9 on page 19.
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% (more in some cases) of the tax due. 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, 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 $500 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.
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. The most recent list of designated private delivery services was published by the IRS in September 2002. The
list includes only the
following:
- Airborne Express (Airborne): Overnight Air Express Service, Next Afternoon Service, and Second Day Service.
- DHL Worldwide Express (DHL): DHL “Same Day” Service and DHL USA Overnight.
- 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.
Filing Requirements—
These rules apply to all U.S. citizens, regardless of where they live,
and resident aliens.
Were you (or your spouse if filing a joint return) age 65 or older at the end of 2003? If you were born on January 1, 1939,
you are considered to
be age 65 at the end of 2003.
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 or the health coverage tax credit.
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 14.
If you are planning to file a tax return for your child who was under age 14 at the end of 2003, 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 6) or see Form 8814.
A child born on January 1, 1990, is considered to be age 14 at the end of 2003. Do not use Form 8814 for such a child.
Nonresident Aliens and Dual-Status Aliens.
These rules also apply to nonresident aliens and dual-status aliens who were married to U.S. citizens or residents
at the end of 2003 and who have
elected to be taxed as resident aliens. Specific rules apply to determine if you are a resident or nonresident alien. See
Pub. 519 for
details.
Should You Use Form 1040EZ?
You can use Form 1040EZ if all nine of the following apply.
- Your filing status is single or married filing jointly (see page 11). If you were a nonresident alien at
any time in 2003, see Nonresident Aliens on page 11.
- You do not claim any dependents.
- You do not claim the educator expense deduction (use TeleTax topic 458, see page 6), the student loan interest
deduction (use TeleTax topic 456, see page 6), or the tuition and fees deduction (use TeleTax topic 457, see page 6).
- You do not claim an education credit (use TeleTax topic 605, see page 6), the retirement savings
contributions credit (use TeleTax topic 610, see page 6), or the health coverage tax credit (see Form 8885).
- You (and your spouse if filing a joint return) were under age 65 and not blind at the end of 2003. If you were born on January
1, 1939, you
are considered to be age 65 at the end of 2003 and cannot use Form 1040EZ.
- Your taxable income (line 6 of Form 1040EZ) is less than $50,000.
- 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 6).
Chart A—For Most People
| IF your filing status is . . . |
THEN file a return if your gross income* was at least . . . |
| Single |
$7,800 |
| Married filing jointly** |
$15,600 |
*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 may exclude
part or all of it).
**If you did not live with your spouse at the end of 2003 (or on the date your spouse died) and your gross income was at least
$3,050, 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.
|
|
|
If your gross income was $3,050 or more, you usually cannot be claimed as a dependent unless you were under age
19 or a student and under age 24. For details, use TeleTax topic 354 (see page 6).
|
You must file a return if any of the following apply.
- Your unearned income was over $750.
- Your earned income was over $4,750.
- Your gross income was more than the larger of—
- $750 or
- Your earned income (up to $4,500) plus $250.
|
Chart C—Other Situations When You Must File
You must file a return using Form 1040A or 1040 if either of the following applies for
2003.
- 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 must file a return using Form 1040 if any of the following apply for 2003.
- You owe any special taxes, such as social security and Medicare tax on tips you did not report to your employer.
- You owe uncollected social security and Medicare or RRTA tax on tips you reported to your employer or on your 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.
|
| |
If you do not meet all nine of the requirements, you must use Form 1040A or 1040. Use TeleTax topic 352 (see page 6) 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. Use TeleTax topic 353 (see page 6).
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 $4,750 for most
single people and $9,500 for most married people filing a joint return. Use TeleTax topic 501 (see page 6). 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 2003, 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.
You may use this filing status if any of the following was true on December 31, 2003.
- 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, 2003, and did not remarry in 2003.
You may use this filing status if any of the following is true.
- You were married as of December 31, 2003, even if you did not live with your spouse at the end of 2003.
- Your spouse died in 2003 and you did not remarry in 2003.
- Your spouse died in 2004 before filing a 2003 return.
A husband and wife may 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. If you file a joint return for 2003, you may not, after the due date for filing that return, amend it to file
as married filing
separately.
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 21.
Where To Report Certain Items From 2003 Forms W-2 and 1099
IRS e-file takes the guess work out of preparing your 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, salaries, tips, etc. (box 1) |
|
Line 1 |
| |
Allocated tips (box 8) |
|
See Tip income on page 13
|
| |
Advance EIC payment (box 9) |
|
|
| |
Dependent care benefits (box 10) |
|
Must file Form 1040A or 1040 |
| |
Adoption benefits (box 12,
code T)
|
|
|
| |
Employer contributions to an Archer MSA
(box 12, code R)
|
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 to deduct or take a credit for the tuition and related expenses |
| 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 2003, see the instructions for line 3 on page
14
|
| 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 on page 13 |
| |
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 |
| 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-MSA |
Distributions from MSAs* |
|
Must file Form 1040 |
| 1099-OID |
Original issue discount (box 1) |
|
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 Coverdell ESAs
Distributions from pensions, annuities, IRAs, etc.
|
|
Must file Form 1040
Must file Form 1040A or 1040
|
| *This includes distributions from Archer and Medicare+Choice MSAs. |
Line Instructions for Form 1040EZ
You may be eligible to use FREE online commercial tax preparation software to file your Federal income tax return. Free services
are accessible
through www.irs.gov or you can buy a software package. You will be asked questions and your return will be prepared based on your answers.
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.
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, see page 22.
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. 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.
If you filed a joint return for 2002 and you are filing a joint return for 2003 with the same spouse, be sure to enter your
names and SSNs in the
same order as on your 2002 return.
Enter your P.O. box number only if your post office does not deliver mail to your home.
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)
You must enter the correct SSN for you and your spouse. If you do not, at the time we process your return, we may disallow the
exemption(s) and any earned income credit you claim.
To apply for an SSN, get Form SS-5 from your local Social Security Administration (SSA) office or call the SSA at
1-800-772-1213. Fill in Form SS-5 and return it to the SSA. It usually takes about 2 weeks to get an SSN.
Check that your SSN on your Forms W-2 and 1099 agrees with your social security card. If not, see page 8 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.
Note.
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
“Yes” box. If you are
filing a joint return, your spouse may also have $3 go to the fund. If you check “Yes,” your tax or refund will not change.
Rounding Off to Whole Dollars
You may 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 2003, you may receive a Form 1099-G.
In the year the tax was paid to the state or other taxing authority, did you file Form 1040EZ or 1040A, or did you use TeleFile?
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 2003 and the amount of any benefits you repaid in 2003. Use the worksheet below 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.
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 in box 1 of their Form(s) W-2. But the following types of income must also 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 $1,400
in 2003. 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 in box 8 of your Form(s) W-2. 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. Exception. 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.
You must use Form 1040A or 1040 if you received dependent care benefits or employer-provided adoption benefits for 2003.
Missing or Incorrect Form W-2?
If you do not get a Form W-2 from your employer by February 2, 2004, use TeleTax topic 154 (see page 6) to find out what to
do. Even if you do not
get a Form W-2, you must still report your earnings on line 1. If you lose your Form W-2 or it is incorrect, ask your employer
for a new one.
Each payer should send you a Form 1099-INT or Form 1099-OID. Report all of your taxable interest income
on line 2 even if you did not receive a Form 1099-INT or 1099-OID.
Include taxable interest from banks, savings and loan associations, money market certificates, credit unions, savings bonds,
etc. If interest was
credited in 2003 on deposits that you could not withdraw because of the bankruptcy or insolvency of the financial institution,
you may be able to
exclude part or all of that interest from your 2003 income. But you must use Form 1040A or 1040 to do so. See Pub. 550 for details.
Worksheet To See if Any of Your Social Security Benefits Are Taxable
If you cashed series EE or I U.S. savings bonds in 2003 that were issued after 1989 and you paid certain higher education
expenses during the year,
you may be able to exclude from income part or all of the interest on those bonds. But you must use Form 8815 and Form 1040A or 1040 to do
so.
You must use Form 1040A or 1040 if either of the following applies.
- You received interest as a nominee (that is, in your name but the interest income actually belongs to someone else).
- You received a 2003 Form 1099-INT for U.S. savings bond interest that includes amounts you reported before 2003.
If you received tax-exempt interest, such as from municipal bonds, enter “TEI” and the amount in the space to the left of line 2. Do
not add tax-exempt interest in the total on line 2.
Unemployment Compensation and Alaska Permanent Fund Dividends
Unemployment Compensation.
You should receive a
Form 1099-G showing the total unemployment compensation paid to you in 2003.
If you received an overpayment of unemployment compensation in 2003 and you repaid any of it in 2003, subtract the
amount you repaid from the total
amount you received. Include the result in the total on line 3. Also, enter “ Repaid” and the amount you repaid in the space to the left of line
3. If you repaid unemployment compensation in 2003 that you included in gross income in an earlier year, you can deduct the
amount repaid. But you
must use Form 1040 to do so. See Pub. 525 for details.
Alaska Permanent Fund Dividends.
Include the dividends in the total on line 3. But you cannot use Form 1040EZ for a child who was under age 14 at the
end of 2003 if the child's
dividends are more than $1,500. Instead, you must file Form 8615 and Form 1040A or 1040 for the child. You must also use Form 8615 and Form
1040A or 1040 for the child if the child's dividends and taxable interest (line 2) total more than $1,500. A child born on
January 1, 1990, is
considered to be age 14 at the end of 2003. Do not use Form 8615 for such a child.
Federal Income Tax Withheld
Enter the total amount of Federal income tax withheld. This should be shown in box 2 of your 2003 Form(s) W-2.
If you received a 2003 Form 1099-INT, 1099-G, or 1099-OID showing Federal income tax withheld, include the tax withheld in
the total on line 7.
This tax should be shown in box 4 of these forms.
If Federal income tax was withheld from your Alaska Permanent Fund dividends, include the tax withheld in the total on line
7.
Line 8
Earned Income Credit (EIC)
The EIC is a credit for certain people who work. The credit may give you a refund even if you do not owe any tax.
If you have a qualifying child (see the next column on this page), you may be able to take the credit, but you must use Schedule
EIC and Form 1040A
or 1040 to do so. For details, see Pub. 596.
- Follow the steps below.
- Complete the worksheet on page 17 or let the IRS figure
the credit for you.
If you take the EIC even though you are not eligible and it is determined that your error is due to reckless or intentional
disregard of the EIC
rules, you will not be allowed to take the credit for 2 years even if you are otherwise eligible to do so. If you fraudulently
take the EIC, you will
not be allowed to take the credit for 10 years. You may also have to pay penalties.
1. Is the amount on Form 1040EZ, line 4, less than $11,230 ($12,230 if married filing jointly)?
You cannot take the credit.
2. Do you, and your spouse if filing a joint return, have a social security number that allows you to work or is valid for EIC
purposes (see
page 16)?
You cannot take the credit.
Enter “No” in the space to the left of line 8.
3. Can you, or your spouse if filing a joint return, be claimed as a dependent on someone else's 2003 tax return?
You cannot take the credit.
4. Were you, or your spouse if filing a joint return, at least age 25 but under age 65 at the end of 2003?
Go to question 5.
You cannot take the credit.
5. Was your home, and your spouse's if filing a joint return, in the United States for more than half of 2003? Members of the
military
stationed outside the United States, see page 16 before you answer.
You cannot take the credit.
Enter “No” in the space to the left of line 8.
6. Look at the qualifying child conditions below. Could you, or your spouse if filing a joint return, be a qualifying child
of another
person in 2003?
You cannot take the credit.
Enter “No” in the space to the left of line 8.
Go to Step 2
on page 16.
1. Figure earned income:
2. Is your earned income less than $11,230 ($12,230 if married filing jointly)?
Go to Step 3.
You cannot take the credit.
1. Do you want the IRS to figure the credit for you?
See Credit Figured by the IRS on this page.
Go to the worksheet on page 17.
Definitions and Special Rules
(listed in alphabetical order)
Credit Figured by the IRS.
To have the IRS figure the credit for you:
- Enter “EIC” in the space to the left of line 8 on Form 1040EZ.
- If your EIC for a year after 1996 was reduced or disallowed, see Form 8862, Who Must File, below.
Form 8862, Who Must File.
You must file Form 8862 if your EIC for a year after 1996 was reduced or disallowed for any reason other than a math
or clerical error. But do not
file Form 8862 if either of the following applies.
- After your EIC was reduced or disallowed in an earlier year (a) you filed Form 8862 (or other documents) and your EIC was then
allowed and (b) your EIC has not been reduced or disallowed again for any reason other than a math or clerical error.
- The only reason your EIC was reduced or disallowed in the earlier year was because it was determined that a child listed on
Schedule EIC was
not your qualifying child.
Also, do not file Form 8862 or take the credit for 2 years if it was determined that your error was due to reckless
or intentional disregard of the
EIC rules (10 years if due to fraud).
Members of the Military.
If you were on extended active duty outside the United States, your home is considered to be in the United States
during that duty period. Extended
active duty is military duty ordered for an indefinite period or for a period of more than 90 days. Once you begin serving
extended active duty, you
are considered to be on extended active duty even if you serve fewer than 90 days.
Social Security Number (SSN).
For purposes of taking the EIC, a valid SSN is a number issued by the Social Security Administration unless “ Not Valid for Employment” is
printed on the social security card and the number was issued solely to apply for or receive a Federally funded benefit.
To find out how to get an SSN, see page 12. If you will not have an SSN by April 15, 2004, see What if You Cannot
File on Time? on page 9.
Welfare Benefits, Effect of Credit on.
Any refund you receive as a result of taking the EIC will not be used to determine if you are eligible for the following
programs or how much you
can receive from them. But if the refund you receive because of the EIC is not spent within a certain period of time, it may
count as an asset (or
resource) and affect your eligibility.
- Temporary Assistance for Needy Families (TANF).
- Medicaid and supplemental security income (SSI).
- Food stamps and low-income housing.
Add lines 7 and 8. Enter the total on line 9.
Amount Paid With Extensions of Time To File.
If you filed Form 4868 to get an automatic extension of time to file, include in the total on line 9 any amount you paid with that form
or by electronic funds withdrawal or credit card. If you paid by credit card, do not include on line 9 the convenience fee
you were charged. To the
left of line 9, enter “ Form 4868” and show the amount paid. Also, include any amount paid with Form 2688.
Do you want the IRS to figure your tax for you?
If line 11a is under $1, we will send the refund only if you request it when you file your return. If you want to check the
status of your refund,
please wait at least 6 weeks (3 weeks if you filed electronically) from the date you filed to do so. But if you filed Form 8379 with your
return, allow 14 weeks (11 weeks if you filed electronically). See page 6 for details.
If your refund is large, you may want to decrease the amount of income tax withheld from your pay by filing a new Form W-4. See
Income Tax Withholding and Estimated Tax Payments for 2004 on page 22.
If you owe past-due Federal tax, state income tax, child support, spousal support, or certain Federal nontax debts, such as
student loans, all or
part of the refund on line 11a may be used (offset) to pay the past-due amount. Offsets for Federal taxes are made by the
IRS. All other offsets are
made by the Treasury Department's Financial Management Service (FMS). You will receive a notice from FMS showing the amount
of the offset and the
agency receiving it. To find out if you may have an offset or if you have a question about it, contact the agency(ies) you
owe the debt to.
Injured Spouse Claim.
If you file a joint return and your spouse has not paid past-due Federal tax, state income tax, child support, spousal
support, or a Federal nontax
debt, such as a student loan, part or all of the refund on line 11a may be used (offset) to pay the past-due amount. But your part of the
refund may be refunded to you after the offset occurs if certain conditions apply and you complete Form 8379. For details,
use TeleTax topic 203 (see
page 6) or see Form 8379.
Complete lines 11b through 11d if you want us to directly deposit the amount shown on line 11a into your checking or savings
account at a bank or
other financial institution (such as a mutual fund, brokerage firm, or credit union) instead of sending you a check.
Note.
If you do not want your refund directly deposited into your account, draw a line through the boxes on lines 11b and 11d.
- You get your refund fast—in half the time as paper filers if you e-file.
- Payment is more secure—there is no check to get lost.
- More convenient. No trip to the bank to deposit your check.
- Saves tax dollars. A refund by direct deposit costs less than a check.
You can check with your financial institution to make sure your direct deposit will be accepted and to get the correct routing
and account numbers.
The IRS is not responsible for a lost refund if you enter the wrong account information.
If you file a joint return and fill in lines 11b through 11d, you are appointing your spouse as an agent to receive the refund.
This appointment
cannot be changed later.
Line 11b.
The routing number must be nine digits. The first two digits must be 01 through 12 or 21 through 32. Otherwise, the direct
deposit will be rejected and a check sent instead. On the sample check on page 20, the routing number is 250250025.
Your check may state that it is payable through a financial institution different from the one at which you have your
checking account. If so,
do not use the routing number on that check. Instead, contact your financial institution for the correct routing number to enter
on line
11b.
Line 11d.
The account number can be up to 17 characters (both numbers and letters). Include hyphens but omit spaces and special
symbols. Enter the number
from left to right and leave any unused boxes blank. On the sample check on page 20, the account number is 20202086. Be sure
not to include
the check number.
Some financial institutions will not allow a joint refund to be deposited into an individual account. The IRS is not
responsible if a financial
institution rejects a direct deposit. If the direct deposit is rejected, a check will be sent instead.
Sample Check—Lines 11b Through 11d
Note.
The routing and account numbers may be in different places on your check.
IRS e-file offers an additional payment option: Electronic Funds Withdrawal. This option allows you to file your return early
and schedule your payment for withdrawal from your checking or savings account on a future date up to and including April
15, 2004. IRS
e-file also provides proof of receipt of your return and payment by email or through your software package. Visit
www.irs.gov/efile for details.
You do not have to pay if line 12 is under $1.
You can pay by check, money order, or credit card.
To Pay by Check or Money Order.
Enclose in the envelope with your return a check or money order payable to the “ United States Treasury” for the full amount when
you file. Do not attach the payment to your return. Do not send cash. Write “ 2003 Form 1040EZ” and your name, address,
daytime phone number, and social security number (SSN) on your payment. If you are filing a joint return, enter the SSN shown
first on your return.
To help process your payment, enter the amount on the right side of the check like this: $ XXX.XX. Do not use dashes
or lines (for example, do not
enter “ XXX–” or “ XXX XX/100”).
To Pay by Credit Card.
You may use your American Express® Card, Discover® Card, MasterCard® card, or Visa® card. To pay by credit card, call
toll free or
visit the website of either service provider listed on this page and follow the instructions. A convenience fee will be charged
by the service
provider based on the amount you are paying. Fees may vary between the providers. You will be told what the fee is during
the transaction and you will
have the option to either continue or cancel the transaction. You can also find out what the fee will be by calling the provider's
toll-free automated
customer service number or visiting the provider's website shown on this page. If you pay by credit card before filing your return, please
enter on page 1 of Form 1040EZ in the upper left corner the confirmation number you were given at the end of the transaction
and the amount you
charged (not including the convenience fee).
| Link2Gov Corporation |
Official Payments Corporation |
| 1-888-PAY-1040
SM |
1-800-2PAY-TAX
SM |
| (1-888-729-1040) |
(1-800-272-9829) |
| 1-888-658-5465 |
1-877-754-4413 |
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www.officialpayments.com |
You may need to increase the amount of income tax withheld from your pay by filing a new Form W-4. See Income Tax Withholding and
Estimated Tax Payments for 2004 on page 22.
If you cannot pay the full amount shown on line 12 when you file, you may ask to make monthly installment payments. You may have up to
60 months to pay. However, you will be charged interest and may be charged a late payment penalty on the tax not paid by April
15, 2004, even if your
request to pay in installments is granted. You must also pay a fee. To limit the interest and penalty charges, pay as much
of the tax as possible when
you file. But before requesting an installment agreement, you should consider other less costly alternatives, such as a bank
loan.
To ask for an installment agreement, use Form 9465. You should receive a response to your request for installments within 30 days. But
if you file your return after March 31, it may take us longer to reply.
Penalty for Not Paying Enough Tax During the Year
You may have to pay a penalty if line 12 is at least $1,000 and it is more than 10% of the tax shown on your return. The “tax shown on your
return” is the amount on line 10 minus the amount on line 8. You may choose to have the IRS figure the penalty for you. If you owe
a penalty, the
IRS will send you a bill. However, if you want to figure the penalty yourself on Form 2210, you must file Form 1040A or 1040 to do so.
The penalty may be waived under certain conditions. See Pub. 505 for details.
Exceptions to the Penalty.
You will not owe the penalty if your 2002 tax return was for a tax year of 12 full months and either 1 or 2 below applies.
- You had no tax liability for 2002 and you were a U.S. citizen or resident for all of 2002 or
- Line 7 on your 2003 return is at least as much as the tax liability shown on your 2002 return.
If you want to allow a friend, family member, or any other person you choose to discuss your 2003 tax return with the IRS,
check the “Yes” box
in the “Third party designee” area of your return. Also, enter the designee's name, phone number, and any five numbers the designee chooses as
his or her personal identification number (PIN). But if you want to allow the paid preparer who signed your return to discuss it with the
IRS, just enter “Preparer” in the space for the designee's name. You do not have to provide the other information requested.
If you check the “Yes” box, you, and your spouse if filing a joint return, are authorizing the IRS to call the designee to answer any
questions that may arise during the processing of your return. You are also authorizing the designee to:
- Give the IRS any information that is missing from your return,
- Call the IRS for information about the processing of your return or the status of your refund or payment(s),
- Receive copies of notices or transcripts related to your return, upon request, and
- Respond to certain IRS notices about math errors, offsets, and return preparation.
You are not authorizing the designee to receive any refund check, bind you to anything (including any additional tax liability),
or otherwise
represent you before the IRS. If you want to expand the designee's authorization, see Pub. 947.
The authorization will automatically end no later than the due date (without regard to extensions) for filing your 2004 tax
return. This is April
15, 2005, for most people. If you want to revoke the authorization before it ends, see Pub. 947.
Form 1040EZ is not considered a valid return unless you sign it. If you are filing a joint return, your spouse must also sign.
If your spouse
cannot sign the return, see Pub. 501. Be sure to date your return and enter your occupation(s). If you are filing a joint return as a
surviving spouse, see Death of a Taxpayer on
page 8.
Child's Return.
If your child cannot sign the return, either parent may sign the child's name in the space provided. Then, add “ By (your signature), parent for
minor child.”
Daytime Phone Number.
Providing your daytime phone number may help speed the processing of your return. We may have questions about items
on your return, such as the
earned income credit. By answering our questions over the phone, we may be able to continue processing your return without
mailing you a letter. If
you are filing a joint return, you may enter either your or your spouse's daytime phone number.
Paid Preparer Must Sign Your Return.
Generally, anyone you pay to prepare your return must sign it in the space provided. The preparer
must give you a copy of the return for your records. Someone who prepares your return but does not charge you should not sign
your return.
Electronic Return Signatures! Create your own personal identification number (PIN) and file a paperless return electronically or use a
tax professional. If you are married filing jointly, you and your spouse will each need to create a PIN and enter these PINs
as your electronic
signatures.
A PIN is any combination of five numbers you choose except five zeros. If you use a PIN, there is nothing to sign and nothing
to mail–not
even your Forms W-2. For more details on the Self-Selected PIN method, visit www.irs.gov/efile and click on “IRS e-file for
Individual Taxpayers.”
To verify your identity, you will be prompted to enter your adjusted gross income (AGI) from your originally filed 2002 Federal income
tax return, if applicable. Do not use your AGI from an amended return (Form 1040X). AGI is the amount shown on your 2002 Form
1040, line 35; Form
1040A, line 21; Form 1040EZ, line 4; and on the TeleFile Tax Record, line I. If you do not have your 2002 income tax return,
call the IRS at
1-800-829-1040 to get a free transcript of your account. You will be prompted to enter your date of birth (DOB). Make sure
your DOB is accurate and
matches the information on record with the Social Security Administration by checking your annual Social Security Statement.
You cannot sign your return electronically if you are a first-time filer under age 16 at the end of 2003.
If you use a paid preparer, ask to sign your return electronically!
How To Avoid Common Mistakes.
Mistakes may delay your refund or result in notices being sent to you.
- Be sure to enter the correct social security number for you and your spouse if married in the space provided on Form 1040EZ.
Check that your
SSN agrees with your social security card.
- Use the amount from line 6 to find your tax in the tax table. Be sure you enter the correct tax on line 10.
- If you think you can take the earned income credit, read the instructions for line 8 that begin on page 15 to make sure you
qualify. If you
do, make sure you use the correct column of the EIC Table for your filing status.
- Check your math, especially when figuring your taxable income, Federal income tax withheld, earned income credit, total payments,
and your
refund or amount you owe.
- Check the “Yes” box on line 5 if you (or your spouse) can be claimed as a dependent on someone's (such as your parents') 2003 return.
Check “Yes” even if that person chooses not to claim you (or your spouse). If no one can claim you (or your spouse) as a dependent,
check
“No.”
- Enter an amount on line 5. If you check the “Yes” box, use the worksheet on the back of Form 1040EZ to figure the amount to enter. If
you check the “No” box, enter $7,800 if single; $15,600 if married filing jointly.
- Remember to sign and date Form 1040EZ and enter your occupation.
- If you got a peel-off label, make sure it shows the correct name(s) and address. If not, enter the correct information. If
you did not get a
label, enter your name and address in the spaces provided on Form 1040EZ. Check that your name agrees with your social security
card.
- Attach your Form(s) W-2 to the left margin of Form 1040EZ.
- If you owe tax and are paying by check or money order, be sure to include all the required information on your payment. See
the instructions
for line 12 on page 20 for details.
What Are Your Rights as a Taxpayer?
You have the right to be treated fairly, professionally, promptly, and courteously by IRS employees. Our goal
at the IRS is to protect your rights so that you will have the highest confidence in the integrity, efficiency, and fairness
of our tax system. To
ensure that you always receive such treatment, you should know about the many rights you have at each step of the tax process.
For details, see
Pub. 1.
Innocent Spouse Relief.
You may qualify for relief from liability for tax on a joint return if (a) there is an
understatement of tax because your spouse omitted income or claimed false deductions or credits, (b) you are divorced, separated, or no
longer living with your spouse, or (c) given all the facts and circumstances, it would not be fair to hold you liable for the tax. See
Form 8857 or Pub. 971 for more details.
What Should You Do if You Move?
If you move after you file your return, always notify the IRS of your new address. To do this, you can use
Form 8822.
Income Tax Withholding and Estimated Tax Payments for 2004.
If the amount you owe or your refund is large, you may want to file a new
Form W-4 with your employer to change the amount of income tax withheld from your 2004 pay. For details on how to complete Form W-4,
see
Pub. 919. In general, you do not have to make estimated tax payments if you expect that your 2004 tax return will show a tax refund
or a tax balance due the IRS of less than $1,000. See Pub. 505 for more details.
How Long Should You Keep Your Tax Return?
Keep a copy of your tax return, worksheets you used, and records of all items appearing on it (such as Forms W-2
and 1099) until the statute of limitations runs out for that return. Usually, this is 3 years from the date the return was
due or filed, or 2 years
from the date the tax was paid, whichever is later. You should keep some records longer. See Pub. 552 for details.
How Do You Amend Your Tax Return?
Use Form 1040X to change a return you already filed. Generally, Form 1040X must be filed within 3 years
after the date the original return was filed, or within 2 years after the date the tax was paid, whichever is later. But you
may have more time to
file Form 1040X if you are physically or mentally unable to manage your financial affairs. See Pub. 556 for details.
How Do You Make a Gift To Reduce the Public Debt?
If you wish to do so, make a check payable to “ Bureau of the Public Debt.” You can send it to: Bureau of the Public Debt, Department G, P.O.
Box 2188, Parkersburg, WV 26106-2188. Or you can enclose the check with your income tax return when you file.
You may be able to deduct this gift on your 2004 tax return.
How Do You Get a Copy of Your Tax Return?
Use TeleTax topic 156 (see page 6) or see Form 4506.
Send or Email Your Written Tax Questions to the IRS.
You should get an answer in about 30 days. If you do not have the mailing address, call us. See page 6 for the number.
Or email your questions to
us through the IRS website at www.irs.gov/help and click on Tax Law Questions. Do not send questions with your return.
Free Help With Your Return.
Free help in preparing your return is available nationwide from IRS-trained volunteers. The Volunteer Income Tax Assistance
( VITA)
program is designed to help low-income taxpayers and the Tax Counseling for the Elderly ( TCE) program is designed to assist taxpayers age
60 or older with their tax return. Some locations offer free electronic filing and all volunteers will let you know about
the credits and deductions
that you may be entitled to claim. For details, call us. See page 6 for the number. If you received a Federal income tax package
in the mail, take it
with you when you go for help. Also take a copy of your 2002 tax return (if available), all your Forms W-2 and 1099 for 2003,
any other information
about your 2003 income and expenses, and the social security number (or individual taxpayer identification number) for your
spouse, your dependents,
and yourself. Or to find the nearest AARP Tax-Aide site, visit AARP's website at www.aarp.org/taxaide or call
1-888-227-7669.
Everyday Tax Solutions.
You can get face-to-face help solving tax problems every business day in IRS Taxpayer Assistance Centers.
An employee can explain IRS letters, request adjustments to your account, or help you set up a payment plan. Call your local
Taxpayer Assistance
Center for an appointment. To find the number, go to www.irs.gov or look in the phone book under “ United States Government, Internal
Revenue Service.”
Online Services.
If you subscribe to an online service, ask about online filing or tax information.
Help for People With Disabilities.
Telephone help is available using TTY/TDD equipment. See page 6 for the number. Braille materials are available at
libraries that have special
services for people with disabilities.
Disclosure, Privacy Act, and Paperwork Reduction Act Notice
The IRS Restructuring and Reform Act of 1998, the Privacy Act of 1974, and the Paperwork Reduction Act of 1980 require that
when we ask you for
information, we must first tell you our legal right to ask for the information, why we are asking for it, and how it will
be used. We must also tell
you what could happen if we do not receive it and whether your response is voluntary, required to obtain a benefit, or mandatory
under the law.
This notice applies to all papers you file with us, including this tax return. It also applies to any questions we need to
ask you so we can
complete, correct, or process your return; figure your tax; and collect tax, interest, or penalties.
Our legal right to ask for information is Internal Revenue Code sections 6001, 6011, and 6012(a), which require you to file
a return or statement
with us for any tax you are liable for. Your response is mandatory under these sections. Code section 6109 requires that you
provide your social
security number or individual taxpayer identification number on what you file. This is so we know who you are, and can process
your return and other
papers. You must fill in all parts of the tax form that apply to you. But you do not have to check the boxes for the Presidential
Election Campaign
Fund or for the third party designee. You also do not have to provide your daytime phone number.
You are not required to provide the information requested on a form that is subject to the Paperwork Reduction Act unless
the form displays a valid
OMB control number. Books or records relating to a form or its instructions must be retained as long as their contents may
become material in the
administration of any Internal Revenue law.
We ask for tax return information to carry out the tax laws of the United States. We need it to figure and collect the right
amount of tax.
If you do not file a return, do not give the information asked for, or give false information, you may be charged penalties
and be subject to
criminal prosecution. We may also have to disallow the exemptions, credits, or deductions shown on your tax return. This could
make the tax higher or
delay any refund. Interest may also be charged.
Generally, tax returns and return information are confidential, as stated in Code section 6103. However, Code section 6103
allows or requires the
Internal Revenue Service to disclose or give the information shown on your tax return to others as described in the Code.
For example, we may disclose
your tax information to the Department of Justice to enforce the tax laws, both civil and criminal, and to cities, states,
the District of Columbia,
U.S. commonwealths or possessions, and certain foreign governments to carry out their tax laws. We may disclose your tax information
to the Department
of Treasury and contractors for tax administration purposes; and to other persons as necessary to obtain information which
we cannot get in any other
way in order to determine the amount of or to collect the tax you owe. We may disclose your tax information to the Comptroller
General of the United
States to permit the Comptroller General to review the Internal Revenue Service. We may disclose your tax information to Committees
of Congress;
Federal, state, and local child support agencies; and to other Federal agencies for the purposes of determining entitlement
for benefits or the
eligibility for and the repayment of loans. We may also disclose this information to other countries under a tax treaty, or
to Federal and state
agencies to enforce Federal nontax criminal laws and to combat terrorism.
Please keep this notice with your records. It may help you if we ask you for other information. If you have questions about
the rules for filing
and giving information, please call or visit any Internal Revenue Service office.
The Time It Takes To Prepare Your Return.
The time needed to complete and file Form 1040EZ will vary depending on individual circumstances. The estimated average
time is:
Recordkeeping, 4 min.; Learning about the law or the form, 1 hr., 40 min.; Preparing the form, 1 hr., 39 min.; and
Copying, assembling, and sending the form to the IRS, 20 min. The total is 3 hr., 43 min.
We Welcome Comments on Forms.
If you have comments concerning the accuracy of these time estimates or suggestions for making this form simpler,
we would be happy to hear from
you. You can email us at *[email protected]. Please put “ Forms Comment” on the subject line. Or you can write to the Tax Products
Coordinating Committee, Western Area Distribution Center, Rancho Cordova, CA 95743-0001. Do not send your return to this address. Instead,
see Where Do You File? on back cover.
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