1040EZ Tips for Line 5

Part of the Video Series How to Complete a 1040EZ Tax Form

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Tax help! Filling out the line 5 of a 1040EZ tax form in this free video on tax help and personal finance.

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1040EZ Tips for Line 5
I'm going to talk now about line five, personal exemptions and standard deductions, for the form 1040EZ. The thing you need to look at here, is to determine if your parents or someone else can claim you as a dependent, and for IRS purposes, you are a dependent if a family member pays for more than one half of your living expenses during the year. And if you're not sure, check with your parents or guardians to see if they're going to be claiming you. If you're not being claimed as a dependent, do not check the boxes on line five. If you are claimed as a dependent, check the proper box on line five for yourself, and/or your spouse. Then we have to go to the separate form and work through that to determine how much can be entered on line five. If you're single, and unmarried, put the figure $8,750 on line five. If you're married and filing a joint return with your spouse, put the figure $17,500 on line five. These figures, $8,750 for single, and $17,500 for married, are the combination of your standard deduction and personal exemptions. Together this figure represents the amount of income which is tax free. If you earn less than $8,750 as a single person, or $17,500 as a married couple, your income is completely tax free. You should still file a tax return because you may have a refund coming from any tax that was withheld on your paycheck. You may also qualify for the earned income credit. The numbers that I quote for single and a married couple may change from year to year and you should check the forms.

About the Expert

Expert: Tom Noah has been a Certified Public Accountant (CPA) for over 27 years. Read More