Form 1040EZ — Lines 2, 3, 7, 8a, and 8b
your Form(s) W-2 unless you can prove that you received less.
total on line 3. Also, enter “Repaid” and the amount you repaid in
Allocated tips should be shown on your Form(s) W-2 in box 8.
the space to the left of line 3. If you repaid unemployment compen-
They are not included as income in box 1. See Pub. 531 for more
sation in 2005 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.
Scholarship and fellowship grants not reported on a Form
W-2. Also, enter “SCH” and the amount in the space to the left of
Include the dividends in the
Alaska Permanent Fund dividends.
line 1. However, if you were a degree candidate, include on line 1
total on line 3. But you cannot use Form 1040EZ for a child who
only the amounts you used for expenses other than tuition and
was under age 14 at the end of 2005 if the child’s dividends are
course-related expenses. For example, amounts used for room,
more than $1,600. Instead, you must file Form 8615 and Form
board, and travel must be reported on line 1.
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
You must use Form 1040A or 1040 if you received
taxable interest (line 2) total more than $1,600. A child born on
dependent care benefits or employer-provided adoption
January 1, 1992, is considered to be age 14 at the end of 2005. Do
benefits for 2005.
not use Form 8615 for such a child.
Missing or Incorrect Form W-2?
Payments and Tax
If you do not get a Form W-2 from your employer by January 31,
2006, 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.
Federal Income Tax Withheld
Enter the total amount of federal income tax withheld. This should
be shown on your 2005 Form(s) W-2 in box 2.
If you received a 2005 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.
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
If federal income tax was withheld from your Alaska Permanent
not receive a Form 1099-INT or 1099-OID.
Fund dividends, include the tax withheld in the total on line 7.
Include taxable interest from banks, savings and loan associa-
tions, money market certificates, credit unions, savings bonds, etc.
Lines 8a and 8b
If interest was credited in 2005 on deposits that you could not
withdraw because of the bankruptcy or insolvency of the financial
Earned Income Credit (EIC)
institution, you may be able to exclude part or all of that interest
from your 2005 income. But you must use Form 1040A or 1040 to
What Is the EIC?
do so. See Pub. 550 for details.
The EIC is a credit for certain people who work. The credit may
If you cashed series EE or I U.S. savings bonds in 2005 that were
give you a refund even if you do not owe any tax.
issued after 1989 and you paid certain higher education expenses
during the year, you may be able to exclude from income part or all
If you have a qualifying child (see page 14), you may be able
of the interest on those bonds. But you must use Form 8815 and
to take the credit, but you must use Schedule EIC and Form 1040A
Form 1040A or 1040 to do so.
or 1040 to do so. For details, see Pub. 596.
You must use Form 1040A or 1040 if either of the following
You may be able to elect to use your 2004 earned
income to figure your EIC if (a) your 2004 earned
You received interest as a nominee (that is, in your name but
income is more than your 2005 earned income, and (b)
the interest income actually belongs to someone else).
your main home was in the Hurricane Katrina disaster
You received a 2005 Form 1099-INT for U.S. savings bond
area on August 25, 2005. Also, special rules may apply for people
interest that includes amounts you reported before 2005.
who had to relocate because of Hurricane Katrina. For details, see
To Take the EIC:
If you received tax-exempt interest, such as from municipal bonds,
Follow the steps on pages 14 and 15.
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.
Complete the worksheet on page 16 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.
Unemployment Compensation and Alaska
Permanent Fund Dividends
If you take the EIC even though you are not eligible and
it is determined that your error is due to reckless or
You should receive a Form 1099-G
intentional disregard of the EIC rules, you will not be
showing the total unemployment compensation paid to you in 2005.
allowed to take the credit for 2 years even if you are
If you received an overpayment of unemployment compensation
otherwise eligible to do so. If you fraudulently take the EIC, you
in 2005 and you repaid any of it in 2005, subtract the amount you
will not be allowed to take the credit for 10 years. See Form 8862,
Who must file, on page 15. You may also have to pay penalties.
repaid from the total amount you received. Include the result in the
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Need more information or forms? See page 5.