Instructions for Form 1040-EZ
What's New for 2007
Earned Income Credit (EIC)
You may be able to take the EIC if you earned less than $12,590 ($14,590 if married filing jointly). See the instructions for lines 8a and 8b that begin on page 10.
Mailing Your Return
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.
Telephone Excise Tax Credit
This credit was available only on your 2006 return. If you filed but did not request it on your 2006 return, file Form 1040X using a simplified procedure explained in its instructions to amend your 2006 return. If you were not required to file a 2006 return, see the 2006 Form 1040EZ-T.
What's New for 2008
Earned Income Credit (EIC)
You may be able to take the EIC if you earned less than $12,880 ($15,880 if married filing jointly).
The election to include nontaxable combat pay in earned income for the EIC is scheduled to expire and will not apply for 2008.
Filing Requirements
Introduction
These rules apply to all U.S. citizens, regardless of where they live, and resident aliens.
Do You Have To File?
Were you (or your spouse if filing a joint return) age 65 or older at the end of 2007? If you were born on January 1, 1943, you are considered to be age 65 at the end of 2007.
| □ | Yes. | Use Pub. 501, Exemptions, Standard Deduction, and Filing Information, to find out if you must file a return. If you do, you must use Form 1040A or 1040. |
| □ | No. | Use Chart A, B, or C on page 7 to see if you must file a return. |
TIP: 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.
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 18. If you are planning to file a tax return for your child who was under age 18 at the end of 2007 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 30) or see Form 8814. A child born on January 1, 1990, is considered to be age 18 at the end of 2007. Do not use Form 8814 for such a child.
Resident aliens. These rules also apply if you were a resident alien. Also, you may qualify for certain tax treaty benefits. See Pub. 519 for details.
Nonresident aliens and dual-status aliens. These rules also apply if you were a nonresident alien or a dual-status alien and both of the following apply.
You were married to a U.S. citizen or resident alien at the end of 2007.
You elected to be taxed as a resident alien.
See Pub. 519 for details.
When Should You File?
File Form 1040EZ by April 15, 2008. If you file after this date, you may have to pay interest and penalties. See below.
If you were serving in, or in support of, the U.S. Armed Forces in a designated combat zone, qualified hazardous duty area, or a contingency operation, see Pub. 3.
What if You Cannot File on Time?
You can get an automatic 6-month extension if, no later than the date your return is due, you file Form 4868. For details, see Form 4868.
However, even if you get an extension, the tax you owe is still due April 15, 2008. If you make a payment with your extension request, see the instructions for line 9 on page 15.
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% of the tax due. The penalty is 15% per month, up to a maximum of 75%, if the failure to file is fraudulent. 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, reportable transaction understatements, filing an erroneous refund claim, 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 $5,000 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. For a list of positions identified as frivolous, see Notice 2007-30, 2007-14 I.R.B. 883, available at
www.irs.gov/irb/2007-14_IRB/ar20.html.
Where Do You File?
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. These private delivery services include only the following.DHL Express (DHL): DHL Same Day Service, DHL Next Day 10:30 am, DHL Next Day 12:00 pm, DHL Next Day 3:00 pm, and DHL 2nd Day Service.
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.
Who Can Use Form 1040EZ?
You can use Form 1040EZ if all of the following apply.
Your filing status is single or married filing jointly (see below). If you were a nonresident alien at any time in 2007, see Nonresident aliens below.
You do not claim any dependents.
You do not claim any adjustments to income. Use TeleTax topics 451-453 and 455-458 (see page 30).
The only tax credit you can claim is the earned income credit. Use TeleTax topics 601-602, 607-608, and 610 (see page 30).
You (and your spouse if filing a joint return) were under age 65 and not blind at the end of 2007. If you were born on January 1, 1943, you are considered to be age 65 at the end of 2007 and cannot use Form 1040EZ.
Your taxable income (line 6 of Form 1040EZ) is less than $100,000.
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 30).
You are not a debtor in a chapter 11 bankruptcy case filed after October 16, 2005.
You do not owe any alternative minimum tax.
If you do not meet all of the requirements, you must use Form 1040A or 1040. Use TeleTax topic 352 (see page 30) 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. You can claim the retirement savings contributions credit (saver's credit) only on Form 1040A or 1040. Use TeleTax topic 610 (see page 30). 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 $5,350 for most single people and $10,700 for most married people filing a joint return. Use TeleTax topic 501 (see page 30). 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 2007, 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.Single
You can use this filing status if any of the following was true on December 31, 2007.
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, 2007, and did not remarry in 2007.
Married Filing Jointly
You can use this filing status if any of the following apply.
You were married at the end of 2007, even if you did not live with your spouse at the end of 2007.
Your spouse died in 2007 and you did not remarry in 2007.
You were married at the end of 2007, and your spouse died in 2008 before filing a 2007 return.
For federal tax purposes, a marriage means only a legal union between a man and a woman as husband and wife. A husband and wife filing jointly report their combined income and deduct their combined allowable expenses on one return. A husband and wife can 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. Once you file a joint return, you cannot choose to file separate returns for that year after the due date of the return.
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 27.Chart A—For Most People
| IF your filing status is . . . | THEN file a return if your gross income* was at least . . . |
| Single | $8,750 |
| Married filing jointly** | $17,500 |
| * 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 can exclude part or all of it). **If you did not live with your spouse at the end of 2007 (or on the date your spouse died) and your gross income was at least $3,400, 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. | ||
| TIP: | To find out if your parent (or someone else) can claim you as a dependent, see Pub. 501. | |
You must file a return if any of the following apply.
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Chart C—Other Situations When You Must File
You must file a return using Form 1040A or 1040 if any of the following apply for 2007.
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You must file a return using Form 1040 if any of the following apply for 2007.
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Where To Report Certain Items From 2007 Forms W-2, 1098, and 1099
IRS e-file takes the guesswork out of preparing your return. You may also be eligible to use Free File to file your federal income tax 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.
| W-2 | Wages, tips, other compensation (box 1) | Line 1 | |
| Allocated tips (box 8) | See page 9 | ||
| Advance EIC payment (box 9) | Must file Form 1040A or 1040 | ||
| Dependent care benefits (box 10) | |||
| Adoption benefits (box 12, code T) | Must file Form 1040 | ||
| Employer contributions to a health savings account (box 12, code W) |
Must file Form 1040 if required to file Form 8889 (see the instructions for Form 8889) | ||
| Amount reported in box 12, code R or Z | 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, but first see the instructions on Form 1098-T |
|
| 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 2007, see the instructions for line 3 on page 10 | |
| 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 beginning on page 9 | ||
| 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 | ||
| Tax-exempt interest (box 8) | See the instructions for line 2 beginning on page 9 | ||
| 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-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 pensions, annuities, IRAs, etc. | Must file Form 1040A or 1040 | |
| 1099-SA | Distributions from HSAs and MSAs* | Must file Form 1040 | |
| *This includes distributions from Archer and Medicare Advantage MSAs. | |||
Line Instructions for Form 1040EZ
Introduction
IRS e-file takes the guesswork out of preparing your return. You may also be eligible to use Free File to file your federal income tax return. Visit www.irs.gov/efile for details.
Name and Address
Use the Peel-Off Label
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.
Address Change
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, use Form 8822 to notify the IRS of your new address.
Name Change
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. See page 27 for details. 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.
TIP: If you filed a joint return for 2006 and you are filing a joint return for 2007 with the same spouse, be sure to enter your names and SSNs in the same order as on your 2006 return.
P.O. Box
Enter your P.O. box number only if your post office does not deliver mail to your home.
Foreign Address
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)
An incorrect or missing SSN can increase your tax or reduce your refund. To apply for an SSN, fill in Form SS-5 and return it, along with the appropriate evidence documents, to the Social Security Administration (SSA). You can get Form SS-5 online at www.socialsecurity.gov, from your local SSA office, or by calling the SSA at 1-800-772-1213. It usually takes about 2 weeks to get an SSN once the SSA has all the evidence and information it needs.
Check that your SSN on your Forms W-2 and 1099 agrees with your social security card. If not, see page 27 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.
CAUTION: 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 box. If you are filing a joint return, your spouse may also have $3 go to the fund. If you check a box, your tax or refund will not change.
Income
Rounding Off to Whole Dollars
You can 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 2007, you may receive a Form 1099-G.
For the year the tax was paid to the state or other taxing authority, did you file Form 1040EZ or 1040A?
| □ | Yes. | None of your refund is taxable. |
| □ | No. | You may have to report part or all of the refund as income on Form 1040 for 2007. |
Social Security Benefits
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 2007 and the amount of any benefits you repaid in 2007. Use the worksheet on page 10 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.
Worksheet To See if Any of Your Social Security Benefits Are Taxable
Before you begin:
|
| 1. | Enter the amount from box 5 of all your Forms SSA-1099 and Forms RRB-1099 |
1. | |||||||
| 2. | Is the amount on line 1 more than zero? | ||||||||
| No. | None of your social security benefits are taxable. | ||||||||
| Yes. | Enter one-half of line 1 | 2. | |||||||
| 3. | Enter your total wages, salaries, tips, etc., from Form(s) W-2. Also, include any taxable unemployment compensation and Alaska Permanent Fund dividends you received (see the instructions for line 3 above) | 3. | |||||||
| 4. | Enter your total interest income, including any tax-exempt interest | 4. | |||||||
| 5. | Add lines 2, 3, and 4 | 5. | |||||||
| 6. | If you are: •Single, enter $25,000 |
6. | |||||||
| •Married filing jointly, enter $32,000 | |||||||||
| 7. | Is the amount on line 6 less than the amount on line 5? |
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| No. | None of your social security benefits are taxable this year. You can use Form 1040EZ. Do not list your benefits as income. |
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| Yes. | Some of your benefits are taxable this year. You must use Form 1040A or 1040. | ||||||||
Line 1
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 on their Form(s) W-2 in box 1. But the following types of income also must 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 $1,500 in 2007. 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 on your Form(s) W-2 in box 8. 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. However, 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.
CAUTION: You must use Form 1040A or 1040 if you received dependent care benefits for 2007. You must use Form 1040 if you received employer-provided adoption benefits for 2007.
Missing or Incorrect Form W-2?
Your employer is required to provide or send Form W-2 to you no later than January 31, 2008. If you do not receive it by early February, use TeleTax topic 154 (see page 30) 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.
Line 2
Taxable Interest
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, credit unions, savings bonds, etc. If interest was credited in 2007 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 2007 income. But you must use Form 1040A or 1040 to do so. See Pub. 550 for details.
If you cashed series EE or I U.S. savings bonds in 2007 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 2007 Form 1099-INT for U.S. savings bond interest that includes amounts you reported before 2007.
Tax-Exempt Interest
If you received tax-exempt interest, such as from municipal bonds, each payer should send you a Form 1099-INT. Your tax-exempt interest should be included in box 8 of Form 1099-INT. 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.
Line 3
Unemployment Compensation and Alaska Permanent Fund Dividends
Unemployment compensation. You should receive a Form 1099-G showing in box 1 the total unemployment compensation paid to you in 2007. Report the amount in box 1 on line 3. However, if you made contributions to a governmental unemployment compensation program, reduce the amount you report on line 3 by those contributions. If you received an overpayment of unemployment compensation in 2007 and you repaid any of it in 2007, 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 2007 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 18 at the end of 2007 if the child's dividends are more than $1,700. 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 $1,700. A child born on January 1, 1990, is considered to be age 18 at the end of 2007. Do not use Form 8615 for such a child.
Payments and Tax
Line 7
Federal Income Tax Withheld
Enter the total amount of federal income tax withheld. This should be shown on your 2007 Form(s) W-2 in box 2.
If you received a 2007 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.
Lines 8a and 8b Earned Income Credit (EIC)
What Is the 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.
Note.
If you have a qualifying child (see page 11), 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.
To Take the EIC:
Follow the steps on pages 11 through 12.
Complete the worksheet on page 13 or let the IRS figure the credit for you.
For help in determining if you are eligible for the EIC, go to
www.irs.gov/eitc and click on “ EITC Assistant. ” This service is available in English and Spanish.
CAUTION: 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. See Form 8862, who must file, on page 12. You may also have to pay penalties.
Step 1. All Filers
1. Is the amount on Form 1040EZ, line 4, less than $12,590 ($14,590 if married filing jointly)?
| Yes. Continue |
| No. |
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 12)?
| Yes. |
Go to question 3.
| No. |
You cannot take the credit. Enter “ No ” in the space to the left of line 8a.
3. Can you, or your spouse if filing a joint return, be claimed as a dependent on someone else's 2007 tax return?
| Yes. |
You cannot take the credit.
| No. Continue |
4. Were you, or your spouse if filing a joint return, at least age 25 but under age 65 at the end of 2007?
| Yes. Continue |
| No. |
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 2007? Members of the military stationed outside the United States, see page 12 before you answer.
| Yes. Continue |
| No. |
You cannot take the credit. Enter “ No ” in the space to the left of line 8a.
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 2007?
| Yes. |
You cannot take the credit. Enter “ No ” in the space to the left of line 8a.
| No. |
Go to Step 2
on the next page.
| A qualifying child for the EIC is a child who is a... Son, daughter, stepchild, foster child, brother, sister, stepbrother, stepsister, or a descendant of any of them (for example, your grandchild, niece, or nephew) |
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| was Under age 19 at the end of 2007 |
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| or | ||
| Under age 24 at the end of 2007 and a student (see page 12) | ||
| or | ||
| Any age and permanently and totally disabled (see page 12) | ||
| who... | ||
| Either lived with another person in the United States for more than half of 2007 or was born or died in 2007 and that person's home was the child's home for the entire time the child was alive in 2007. |
Special rules apply if the child was married or also meets the conditions to be a qualifying child of another person (other than your spouse if filing a joint return). For details, use TeleTax topic 601 (see page 30) or see Pub. 596.
Step 2. Earned Income
1. Figure earned income:
| Form 1040EZ, line 1 | |||||
| Subtract, if included in line 1, any: | |||||
| • | Taxable scholarship or fellowship grant not reported on a Form W-2. | ||||
| • | Amount received for work performed while an inmate in a penal institution (enter “ PRI ” in the space to the left of line 1 on Form 1040EZ). | ||||
| • | Amount received as a pension or annuity from a nonqualified deferred compensation plan or a nongovernmental section 457 plan (enter “ DFC ” and the amount subtracted in the space to the left of line 1 on Form 1040EZ). This amount may be shown on your Form W-2 in box 11. If you received such an amount but box 11 is blank, contact your employer for the amount received as a pension or annuity. | - |
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| Add all of your nontaxable combat pay if you elect to include it in earned income. Also enter this amount on Form 1040EZ, line 8b. See Combat pay, nontaxable on this page. | + |
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CAUTION: Electing to include nontaxable combat pay may increase or decrease your EIC. Figure the credit with and without your nontaxable combat pay before making the election. |
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| Earned Income = | |||||
2. Is your earned income less than $12,590 ($14,590 if married filing jointly)?
| Yes. |
Go to Step 3.
| No. |
You cannot take the credit.
Step 3. How To Figure the Credit
1. Do you want the IRS to figure the credit for you?
| Yes. |
See Credit figured by the IRS on this page.
| No. |
Go to the worksheet on page 13.
Definitions and Special Rules
(listed in alphabetical order)
Combat pay, nontaxable. If you were a member of the U.S. Armed Forces who served in a combat zone, certain pay is excluded from your income. See Combat Zone Exclusion in Pub. 3. You can elect to include this pay in your earned income when figuring the EIC. The amount of your nontaxable combat pay should be shown in Form(s) W-2, box 12, with code Q. If you are filing a joint return and both you and your spouse received nontaxable combat pay, you can each make your own election.
Credit figured by the IRS. To have the IRS figure the credit for you:
Enter “ EIC ” in the space to the left of line 8a on Form 1040EZ.
Be sure you enter the nontaxable combat pay you elect to include in earned income on Form 1040EZ, line 8b. See Combat pay, nontaxable, above.
If your EIC for a year after 1996 was reduced or disallowed, see Form 8862, who must file, below.
You filed Form 8862 for another year, the EIC was allowed for that year, and 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.
2 years after the most recent tax year for which there was a final determination that your EIC claim was due to reckless or intentional disregard of the EIC rules, or
10 years after the most recent tax year for which there was a final determination that your EIC claim was 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 do not serve more than 90 days.
Permanently and totally disabled. A person is permanently and totally disabled if, at any time in 2007, the person cannot engage in any substantial gainful activity because of a physical or mental condition and a doctor has determined that this condition has lasted or can be expected to last continuously for at least a year or can be expected to lead to death.
Social security number (SSN). For 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 9. If you will not have an SSN by the date your return is due, see What if You Cannot File on Time? on page 5.
Student. A student is a child who during any part of 5 calendar months of 2007 was enrolled as a full-time student at a school, or took a full-time, on-farm training course given by a school or a state, county, or local government agency. A school includes a technical, trade, or mechanical school. It does not include an on-the-job training course, correspondence school, or a school offering courses only through the Internet.
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 can 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.
| 2007 Earned Income Credit (EIC) TableCaution. This is not a tax table. | |
| 1. | To find your credit, read down the “ At least-But less than ” columns and find the line that includes the amount you were told to look up from your EIC Worksheet on page 13. |
| 2. | Then, read across to the column for your filing status. Enter the credit from that column on your EIC Worksheet. |
If the amount you are looking up from the worksheet is- And your filing status is- At
least But
less than Single Married filing jointlyYour credit is-
| $1 | $50 | $2 | $2 |
| 50 | 100 | 6 | 6 |
| 100 | 150 | 10 | 10 |
| 150 | 200 | 13 | 13 |
| 200 | 250 | 17 | 17 |
| 250 | 300 | 21 | 21 |
| 300 | 350 | 25 | 25 |
| 350 | 400 | 29 | 29 |
| 400 | 450 | 33 | 33 |
| 450 | 500 | 36 | 36 |
| 500 | 550 | 40 | 40 |
| 550 | 600 | 44 | 44 |
| 600 | 650 | 48 | 48 |
| 650 | 700 | 52 | 52 |
| 700 | 750 | 55 | 55 |
| 750 | 800 | 59 | 59 |
| 800 | 850 | 63 | 63 |
| 850 | 900 | 67 | 67 |
| 900 | 950 | 71 | 71 |
| 950 | 1,000 | 75 | 75 |
| 1,000 | 1,050 | 78 | 78 |
| 1,050 | 1,100 | 82 | 82 |
| 1,100 | 1,150 | 86 | 86 |
| 1,150 | 1,200 | 90 | 90 |
| 1,200 | 1,250 | 94 | 94 |
| 1,250 | 1,300 | 98 | 98 |
| 1,300 | 1,350 | 101 | 101 |
| 1,350 | 1,400 | 105 | 105 |
| 1,400 | 1,450 | 109 | 109 |
| 1,450 | 1,500 | 113 | 113 |
| 1,500 | 1,550 | 117 | 117 |
| 1,550 | 1,600 | 120 | 120 |
| 1,600 | 1,650 | 124 | 124 |
| 1,650 | 1,700 | 128 | 128 |
| 1,700 | 1,750 | 132 | 132 |
| 1,750 | 1,800 | 136 | 136 |
| 1,800 | 1,850 | 140 | 140 |
| 1,850 | 1,900 | 143 | 143 |
| 1,900 | 1,950 | 147 | 147 |
| 1,950 | 2,000 | 151 | 151 |
| 2,000 | 2,050 | 155 | 155 |
| 2,050 | 2,100 | 159 | 159 |
| 2,100 | 2,150 | 163 | 163 |
| 2,150 | 2,200 | 166 | 166 |
| 2,200 | 2,250 | 170 | 170 |
| 2,250 | 2,300 | 174 | 174 |
| 2,300 | 2,350 | 178 | 178 |
| 2,350 | 2,400 | 182 | 182 |
| 2,400 | 2,450 | 186 | 186 |
| 2,450 | 2,500 | 189 | 189 |
| 2,500 | 2,550 | 193 | 193 |
| 2,550 | 2,600 | 197 | 197 |
| 2,600 | 2,650 | 201 | 201 |
| 2,650 | 2,700 | 205 | 205 |
| 2,700 | 2,750 | 208 | 208 |
| 2,750 | 2,800 | 212 | 212 |
| 2,800 | 2,850 | 216 | 216 |
| 2,850 | 2,900 | 220 | 220 |
| 2,900 | 2,950 | 224 | 224 |
| 2,950 | 3,000 | 228 | 228 |
| 3,000 | 3,050 | 231 | 231 |
| 3,050 | 3,100 | 235 | 235 |
| 3,100 | 3,150 | 239 | 239 |
| 3,150 | 3,200 | 243 | 243 |
| 3,200 | 3,250 | 247 | 247 |
| 3,250 | 3,300 | 251 | 251 |
| 3,300 | 3,350 | 254 | 254 |
| 3,350 | 3,400 | 258 | 258 |
| 3,400 | 3,450 | 262 | 262 |
| 3,450 | 3,500 | 266 | 266 |
| 3,500 | 3,550 | 270 | 270 |
| 3,550 | 3,600 | 273 | 273 |
| 3,600 | 3,650 | 277 | 277 |
| 3,650 | 3,700 | 281 | 281 |
| 3,700 | 3,750 | 285 | 285 |
| 3,750 | 3,800 | 289 | 289 |
| 3,800 | 3,850 | 293 | 293 |
| 3,850 | 3,900 | 296 | 296 |
| 3,900 | 3,950 | 300 | 300 |
| 3,950 | 4,000 | 304 | 304 |
| 4,000 | 4,050 | 308 | 308 |
| 4,050 | 4,100 | 312 | 312 |
| 4,100 | 4,150 | 316 | 316 |
| 4,150 | 4,200 | 319 | 319 |
| 4,200 | 4,250 | 323 | 323 |
| 4,250 | 4,300 | 327 | 327 |
| 4,300 | 4,350 | 331 | 331 |
| 4,350 | 4,400 | 335 | 335 |
| 4,400 | 4,450 | 339 | 339 |
| 4,450 | 4,500 | 342 | 342 |
| 4,500 | 4,550 | 346 | 346 |
| 4,550 | 4,600 | 350 | 350 |
| 4,600 | 4,650 | 354 | 354 |
| 4,650 | 4,700 | 358 | 358 |
| 4,700 | 4,750 | 361 | 361 |
| 4,750 | 4,800 | 365 | 365 |
| 4,800 | 4,850 | 369 | 369 |
| 4,850 | 4,900 | 373 | 373 |
| 4,900 | 4,950 | 377 | 377 |
| 4,950 | 5,000 | 381 | 381 |
| 5,000 | 5,050 | 384 | 384 |
| 5,050 | 5,100 | 388 | 388 |
| 5,100 | 5,150 | 392 | 392 |
| 5,150 | 5,200 | 396 | 396 |
| 5,200 | 5,250 | 400 | 400 |
| 5,250 | 5,300 | 404 | 404 |
| 5,300 | 5,350 | 407 | 407 |
| 5,350 | 5,400 | 411 | 411 |
| 5,400 | 5,450 | 415 | 415 |
| 5,450 | 5,500 | 419 | 419 |
| 5,500 | 5,550 | 423 | 423 |
| 5,550 | 5,600 | 428 | 428 |
| 5,600 | 5,650 | 428 | 428 |
| 5,650 | 5,700 | 428 | 428 |
| 5,700 | 5,750 | 428 | 428 |
| 5,750 | 5,800 | 428 | 428 |
| 5,800 | 5,850 | 428 | 428 |
| 5,850 | 5,900 | 428 | 428 |
| 5,900 | 5,950 | 428 | 428 |
| 5,950 | 6,000 | 428 | 428 |
| 6,000 | 6,050 | 428 | 428 |
| 6,050 | 6,100 | 428 | 428 |
| 6,100 | 6,150 | 428 | 428 |
| 6,150 | 6,200 | 428 | 428 |
| 6,200 | 6,250 | 428 | 428 |
| 6,250 | 6,300 | 428 | 428 |
| 6,300 | 6,350 | 428 | 428 |
| 6,350 | 6,400 | 428 | 428 |
| 6,400 | 6,450 | 428 | 428 |
| 6,450 | 6,500 | 428 | 428 |
| 6,500 | 6,550 | 428 | 428 |
| 6,550 | 6,600 | 428 | 428 |
| 6,600 | 6,650 | 428 | 428 |
| 6,650 | 6,700 | 428 | 428 |
| 6,700 | 6,750 | 428 | 428 |
| 6,750 | 6,800 | 428 | 428 |
| 6,800 | 6,850 | 428 | 428 |
| 6,850 | 6,900 | 428 | 428 |
| 6,900 | 6,950 | 428 | 428 |
| 6,950 | 7,000 | 428 | 428 |
| 7,000 | 7,050 | 426 | 428 |
| 7,050 | 7,100 | 422 | 428 |
| 7,100 | 7,150 | 418 | 428 |
| 7,150 | 7,200 | 414 | 428 |
| 7,200 | 7,250 | 410 | 428 |
| 7,250 | 7,300 | 407 | 428 |
| 7,300 | 7,350 | 403 | 428 |
| 7,350 | 7,400 | 399 | 428 |
| 7,400 | 7,450 | 395 | 428 |
| 7,450 | 7,500 | 391 | 428 |
| 7,500 | 7,550 | 387 | 428 |
| 7,550 | 7,600 | 384 | 428 |
| 7,600 | 7,650 | 380 | 428 |
| 7,650 | 7,700 | 376 | 428 |
| 7,700 | 7,750 | 372 | 428 |
| 7,750 | 7,800 | 368 | 428 |
| 7,800 | 7,850 | 365 | 428 |
| 7,850 | 7,900 | 361 | 428 |
| 7,900 | 7,950 | 357 | 428 |
| 7,950 | 8,000 | 353 | 428 |
| 8,000 | 8,050 | 349 | 428 |
| 8,050 | 8,100 | 345 | 428 |
| 8,100 | 8,150 | 342 | 428 |
| 8,150 | 8,200 | 338 | 428 |
| 8,200 | 8,250 | 334 | 428 |
| 8,250 | 8,300 | 330 | 428 |
| 8,300 | 8,350 | 326 | 428 |
| 8,350 | 8,400 | 322 | 428 |
| 8,400 | 8,450 | 319 | 428 |
| 8,450 | 8,500 | 315 | 428 |
| 8,500 | 8,550 | 311 | 428 |
| 8,550 | 8,600 | 307 | 428 |
| 8,600 | 8,650 | 303 | 428 |
| 8,650 | 8,700 | 299 | 428 |
| 8,700 | 8,750 | 296 | 428 |
| 8,750 | 8,800 | 292 | 428 |
| 8,800 | 8,850 | 288 | 428 |
| 8,850 | 8,900 | 284 | 428 |
| 8,900 | 8,950 | 280 | 428 |
| 8,950 | 9,000 | 277 | 428 |
| 9,000 | 9,050 | 273 | 426 |
| 9,050 | 9,100 | 269 | 422 |
| 9,100 | 9,150 | 265 | 418 |
| 9,150 | 9,200 | 261 | 414 |
| 9,200 | 9,250 | 257 | 410 |
| 9,250 | 9,300 | 254 | 407 |
| 9,300 | 9,350 | 250 | 403 |
| 9,350 | 9,400 | 246 | 399 |
| 9,400 | 9,450 | 242 | 395 |
| 9,450 | 9,500 | 238 | 391 |
| 9,500 | 9,550 | 234 | 387 |
| 9,550 | 9,600 | 231 | 384 |
| 9,600 | 9,650 | 227 | 380 |
| 9,650 | 9,700 | 223 | 376 |
| 9,700 | 9,750 | 219 | 372 |
| 9,750 | 9,800 | 215 | 368 |
| 9,800 | 9,850 | 212 | 365 |
| 9,850 | 9,900 | 208 | 361 |
| 9,900 | 9,950 | 204 | 357 |
| 9,950 | 10,000 | 200 | 353 |
| 10,000 | 10,050 | 196 | 349 |
| 10,050 | 10,100 | 192 | 345 |
| 10,100 | 10,150 | 189 | 342 |
| 10,150 | 10,200 | 185 | 338 |
| 10,200 | 10,250 | 181 | 334 |
| 10,250 | 10,300 | 177 | 330 |
| 10,300 | 10,350 | 173 | 326 |
| 10,350 | 10,400 | 169 | 322 |
| 10,400 | 10,450 | 166 | 319 |
| 10,450 | 10,500 | 162 | 315 |
| 10,500 | 10,550 | 158 | 311 |
| 10,550 | 10,600 | 154 | 307 |
| 10,600 | 10,650 | 150 | 303 |
| 10,650 | 10,700 | 146 | 299 |
| 10,700 | 10,750 | 143 | 296 |
| 10,750 | 10,800 | 139 | 292 |
| 10,800 | 10,850 | 135 | 288 |
| 10,850 | 10,900 | 131 | 284 |
| 10,900 | 10,950 | 127 | 280 |
| 10,950 | 11,000 | 124 | 277 |
| 11,000 | 11,050 | 120 | 273 |
| 11,050 | 11,100 | 116 | 269 |
| 11,100 | 11,150 | 112 | 265 |
| 11,150 | 11,200 | 108 | 261 |
| 11,200 | 11,250 | 104 | 257 |
| 11,250 | 11,300 | 101 | 254 |
| 11,300 | 11,350 | 97 | 250 |
| 11,350 | 11,400 | 93 | 246 |
| 11,400 | 11,450 | 89 | 242 |
| 11,450 | 11,500 | 85 | 238 |
| 11,500 | 11,550 | 81 | 234 |
| 11,550 | 11,600 | 78 | 231 |
| 11,600 | 11,650 | 74 | 227 |
| 11,650 | 11,700 | 70 | 223 |
| 11,700 | 11,750 | 66 | 219 |
| 11,750 | 11,800 | 62 | 215 |
| 11,800 | 11,850 | 59 | 212 |
| 11,850 | 11,900 | 55 | 208 |
| 11,900 | 11,950 | 51 | 204 |
| 11,950 | 12,000 | 47 | 200 |
| 12,000 | 12,050 | 43 | 196 |
| 12,050 | 12,100 | 39 | 192 |
| 12,100 | 12,150 | 36 | 189 |
| 12,150 | 12,200 | 32 | 185 |
| 12,200 | 12,250 | 28 | 181 |
| 12,250 | 12,300 | 24 | 177 |
| 12,300 | 12,350 | 20 | 173 |
| 12,350 | 12,400 | 16 | 169 |
| 12,400 | 12,450 | 13 | 166 |
| 12,450 | 12,500 | 9 | 162 |
| 12,500 | 12,550 | 5 | 158 |
| 12,550 | 12,600 | *
* If the amount you are looking up from the worksheet is at least $12,550 but less than $12,590, your credit is $2. Otherwise, you cannot take the credit. |
154 |
| 12,600 | 12,650 | 0 | 150 |
| 12,650 | 12,700 | 0 | 146 |
| 12,700 | 12,750 | 0 | 143 |
| 12,750 | 12,800 | 0 | 139 |
| 12,800 | 12,850 | 0 | 135 |
| 12,850 | 12,900 | 0 | 131 |
| 12,900 | 12,950 | 0 | 127 |
| 12,950 | 13,000 | 0 | 124 |
| 13,000 | 13,050 | 0 | 120 |
| 13,050 | 13,100 | 0 | 116 |
| 13,100 | 13,150 | 0 | 112 |
| 13,150 | 13,200 | 0 | 108 |
| 13,200 | 13,250 | 0 | 104 |
| 13,250 | 13,300 | 0 | 101 |
| 13,300 | 13,350 | 0 | 97 |
| 13,350 | 13,400 | 0 | 93 |
| 13,400 | 13,450 | 0 | 89 |
| 13,450 | 13,500 | 0 | 85 |
| 13,500 | 13,550 | 0 | 81 |
| 13,550 | 13,600 | 0 | 78 |
| 13,600 | 13,650 | 0 | 74 |
| 13,650 | 13,700 | 0 | 70 |
| 13,700 | 13,750 | 0 | 66 |
| 13,750 | 13,800 | 0 | 62 |
| 13,800 | 13,850 | 0 | 59 |
| 13,850 | 13,900 | 0 | 55 |
| 13,900 | 13,950 | 0 | 51 |
| 13,950 | 14,000 | 0 | 47 |
| 14,000 | 14,050 | 0 | 43 |
| 14,050 | 14,100 | 0 | 39 |
| 14,100 | 14,150 | 0 | 36 |
| 14,150 | 14,200 | 0 | 32 |
| 14,200 | 14,250 | 0 | 28 |
| 14,250 | 14,300 | 0 | 24 |
| 14,300 | 14,350 | 0 | 20 |
| 14,350 | 14,400 | 0 | 16 |
| 14,400 | 14,450 | 0 | 13 |
| 14,450 | 14,500 | 0 | 9 |
| 14,500 | 14,550 | 0 | 5 |
| 14,550 | 14,590 | 0 | 2 |
Line 9
Add lines 7 and 8a. Enter the total on line 9.
Amount paid with request for extension 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.Line 10
Tax
Do you want the IRS to figure your tax for you?
| □ | Yes. See Pub. 967 for details, including who is eligible and what to do. If you have paid too much, we will send you a refund. If you did not pay enough, we will send you a bill. |
| □ | No. Use the Tax Table that starts on page 18. |
Refund
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 29 for details.
TIP: 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 2008 on page 27.
Refund Offset
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). For federal tax offsets, you will receive a notice from the IRS. For all other offsets, you will receive a notice from FMS. 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. 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 if certain conditions apply and you complete Form 8379. For details, use TeleTax topic 203 (see page 30) or see Form 8379.Lines 11a Through 11d
| Fast Refunds! Choose direct deposit—a fast, simple, safe, secure way to have your refund deposited automatically into your checking or savings account, including an individual retirement arrangement (IRA). |
Why Use Direct Deposit?
You get your refund faster by direct deposit than you do by check.
Payment is more secure. There is no check to get lost.
It is more convenient. You do not have to make a trip to the bank to deposit your check.
It saves tax dollars. It costs the government less to refund by direct deposit.
If you want us to directly deposit the amount shown on line 11a into your checking or savings account, including an IRA, at a bank or other financial institution (such as a mutual fund, brokerage firm, or credit union) in the United States:
Check the box on line 11a and attach Form 8888 if you want to split the direct deposit of your refund among two or three accounts, or
Complete lines 11b through 11d if you want your refund deposited to only one account.
Otherwise, we will send you a check.
Note.
If you do not want your refund directly deposited into your account, do not check the box on line 11a. Draw a line through the boxes on lines 11b and 11d.
CAUTION: The IRS is not responsible for a lost refund if you enter the wrong account information. Check with your financial institution to get the correct routing and account numbers and to make sure your direct deposit will be accepted. Do not use the routing number on a deposit slip if it is different from the routing number on your checks.
If you file a joint return and check the box on line 11a and attach Form 8888 or fill in lines 11b through 11d, your spouse may get at least part of the refund.
If the direct deposit to your account is different from the amount you expected, you will receive an explanation in the mail about 2 weeks after your refund is deposited.
Line 11a. You cannot file Form 8888 and split your refund among two or three accounts if Form 8379 is filed with your return.
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 below , the routing number is 250250025. William and Doris Maple would use that routing number unless their financial institution instructed them to use a different routing number for direct deposits. Ask your financial institution for the correct routing number to enter on line 11b if:
Your deposit is to a savings account that does not allow you to write checks, or
Your checks state they are payable through a financial institution different from the one at which you have your checking account.
Line 11c. Check the appropriate box for the type of account. Do not check more than one box. If the deposit is to an IRA, ask your financial institution whether you should check the “ Checking ” or “ Savings ” box. You must check the correct box to ensure your deposit is accepted.
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 below , the account number is 20202086. Do not include the check number.
CAUTION: Some financial institutions will not allow a joint refund to be deposited into an individual account. If the direct deposit is rejected, a check will be sent instead. The IRS is not responsible if a financial institution rejects a direct deposit.
Caution: The routing and account numbers may be in different places on your check.
Amount You Owe
IRS e-file offers you the electronic payment option of electronic funds withdrawal (EFW). EFW can be used to pay your current year balance due and can be used to make up to four estimated tax payments. If you are filing early, you can schedule your payment for withdrawal from your account on a future date, up to and including April 15, 2008. If you file your return after April 15, 2008, you can now include interest and penalty in your payment. Visit www.irs.gov and enter “ e-pay ” in the search box for details.
You also can pay using the electronic federal tax payment system (EFTPS), a free tax payment system that allows you to make payments online or by phone. For more information or details on enrolling, visit www.eftps.gov or call Customer Service at 1-800-316-6541. TTY/TDD help is available by calling 1-800-733-4829.
Line 12
TIP: To save interest and penalties, pay your taxes in full by April 15, 2008. 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 “ 2007 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 can 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 below.
| 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 |
| (Customer Service) | (Customer Service) |
| www.PAY1040.com | www.officialpayments.com |
TIP: You may need to (a) increase the amount of income tax withheld from your pay by filing a new Form W-4 or (b) increase the tax withheld from other income by filing Form W-4V. See Income tax withholding and estimated tax payments for 2008 on page 27.
What if You Cannot Pay?
Installment payments. If you cannot pay the full amount shown on line 12 when you file, you can ask to make monthly installment payments for the full or a partial amount. You may have up to 60 months to pay. However, even if your request to pay in installments is granted, you will be charged interest and may be charged a late payment penalty on the tax not paid by April 15, 2008. 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 or credit card payment.
To ask for an installment agreement, you can apply online or use Form 9465. To apply online, go to www.irs.gov, use the pull-down menu under “ I need to ... ” and select “ Set Up a Payment Plan. ” If you use Form 9465, you should receive a response to your request to make installment payments 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 8a. 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 2006 tax return was for a tax year of 12 full months and either of the following applies.You had no tax shown on your 2006 return and you were a U.S. citizen or resident for all of 2006, or
Line 7 on your 2007 return is at least as much as the tax shown on your 2006 return.
Third Party Designee
If you want to allow a friend, family member, or any other person you choose to discuss your 2007 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 digits 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 2008 tax return. This is April 15, 2009, for most people. If you want to revoke the authorization before it ends, see Pub. 947.
Sign Your Return
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 28.
Child's return. If your child cannot sign the return, either parent can 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 can have questions about items on your return, such as the earned income credit. If you answer 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 can 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 digits 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.
To verify your identity, you will be prompted to enter your adjusted gross income (AGI) from your originally filed 2006 federal income tax return, if applicable. Do not use your AGI from an amended return (Form 1040X) or a math error correction made by IRS. AGI is the amount shown on your 2006 Form 1040, line 38; Form 1040A, line 21; or Form 1040EZ, line 4. If you do not have your 2006 income tax return, call the IRS at 1-800-829-1040 to get a free transcript of your return. (If you filed electronically last year, you may use your prior year PIN to verify your identity instead of your prior year AGI. The prior year PIN is the five digit PIN you used to electronically sign your 2006 return.) You will also 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.
If you are filing your return electronically using a tax practitioner, you are required to sign the return electronically. The practitioner will tell you how.
CAUTION: You cannot sign your return electronically (but can still file electronically) if you are not using a tax practitioner and you are a first-time filer under age 16 at the end of 2007.
For more details, visit www.irs.gov/efile and click on “ Individual Taxpayers. ”
Form 8453-OL. Your return is not complete without your signature. If you are not filing through a tax practitioner and you are not eligible or choose not to sign your return electronically, you must complete, sign, and file Form 8453-OL.
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