Know About Tax

Eligibility and Basics

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Who can file 1040EZ?
Filing the simple 1040EZ is what most taxpayers choose. Here is a list of conditions to check if you are eligible to file it.
  • Your filing status is single or married filing jointly.
  • You don’t claim dependents.
  • Your taxable income is less than $100,000.
  • Your taxable interest is $1,500 or less.
  • You don’t claim adjustments to income, like student loan interest deduction or an IRA deduction.
  • The only credit you claim is the Earned Income Tax Credit.
  • You, and your spouse, if filing a joint return, were under age 65 and not blind at the end of 2015. If you were born before Jan. 1, 1951, you are considered to be age 65 and can’t use Form 1040EZ.
  • You don’t owe household employment taxes on wages you paid to a household employee.
  • You aren’t a debtor in a Chapter 11 bankruptcy case filed after Oct. 16, 2005.
  • You don’t owe Alternative Minimum Tax or aren’t required to file Form 6251.
  • Your income sources were only wages, salaries, tips, taxable scholarships, taxable fellowship grants, and unemployment compensation or Alaska Permanent Fund dividends.
  • Advance payments of the premium tax credit were not made for you, your spouse, or any individual you enrolled in coverage for which no one else is claiming the personal exemption.
What are Deductions?
A tax deduction reduces your taxable income. This is an amount that you are allowed to write-off from your gross income to calculate your taxable income is deductions. All taxpayers may claim a standard deduction, and these deductions are determined by the IRS. If your qualifying expenses go above your standard deduction, you may claim the exceeding amount by itemizing your deductions as per IRS rules.
Who qualifies for Medicare benefits?
To qualify for Medicare, a citizen must typically be 65 years old or older and a legal citizen or permanent resident of the US; however, it is possible to qualify before the age of 65. People with certain disabilities, most of those who already receive Social Security or those with end-stage renal disease may become Medicare beneficiaries at a younger age.
What are Social Security Taxes?
The Social Security tax is a kind of payroll deduction that pays for the retirement and disability benefits. This tax rate may face changes from year to year, according to the necessities of the beneficiaries.
States with no Income Tax
Only seven states lack an income tax altogether, they are:
  • Alaska
  • Florida
  • Nevada
  • South Dakota
  • Texas
  • Washington
  • Wyoming

Are you from any of these States?

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And two states have a limited income tax on individuals. These States have only dividend and interest income tax:

  • Tennessee
  • New Hampshire