The 1040 EZ tax table section starts on page 31 of the instruction booklet for that tax form. Why would you need to know this? Because if you know roughly what your taxable income is going to be for the year, you can find out how much tax you’ll owe. Or, if you are having money withheld from your paycheck by your employer, you may find out that you’re getting a tax refund. How does this work?
How to Use the 1040 EZ Tax Tables to Figure Your Tax
Well if you know your annual salary, you can make a few adjustments to it to arrive at your taxable income. On IRS form 1040 EZ, that’ s just a few calculations and online 6 of the form you have your adjusted gross income. That’s AGI for short. You take what you made that year, which is what’s printed on your W2 statement from your employer, and what’s printed on your 1099-INT from your savings account. If you made more than $1500 on your interest then you can’t use the 1040 EZ by the way.
Your AGI is what you’ll use to look up your tax on the 1040 EZ tax table. You’ll have the 1040 EZ Instruction booklet handy, just go to page 31. It starts there. The tables are arranged in increasing amounts of AGI, starting with $0 and all the way up. Find your table and read across to the correct column for your filing status.
Your filing status is either going to be single, or married, filing jointly. Take the number from the right column and that’s your tax that you owe. Now, if you’ve already been paying taxes all year long (and you will have, if you’ve had withholding from your paycheck), you may have already paid that amount, and some people are delighted to find that they’ve paid more than the amount shown for them on the 1040 EZ tax table. That means a nice IRS refund is coming their way.