Instructions For Form 1040ez - Income Tax Return - Internal Revenue Service - 2010 Page 12

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2010 Form 1040EZ— Lines 7 through 8
Payments, Credits, and Tax (Lines 7– 12)
7
Payments,
7
Federal income tax withheld from Form(s) W-2 and 1099.
7
8
Credits,
Making work pay credit (see worksheet on back).
8
8
and Tax
9a Earned income credit (EIC) (see page 13).
9
9a
b Nontaxable combat pay election.
9b
10
Add lines 7, 8, and 9a. These are your total payments and credits.
10
11
Tax. Use the amount on line 6 above to find your tax in the tax table on pages 27
11
11
through 35 of the instructions. Then, enter the tax from the table on this line.
You checked the “No” box on line 1a,
7
Line 7, Federal Income Tax Withheld
You have a taxable scholarship or fellowship grant not
reported on Form W-2 that is included on Form 1040EZ,
line 1,
Enter the total amount of federal income tax withheld. This
You received amounts as a pension or annuity from a
should be shown on your 2010 Form(s) W-2 in box 2.
nonqualified deferred compensation plan or a nongovern-
If you received 2010 Form(s) 1099-INT, 1099-G, or 1099-OID
mental section 457 plan that is included on Form 1040EZ,
showing federal income tax withheld, include the tax withheld
line 1, or
in the total on line 7. This tax should be shown in box 4 of
You received pay for work done as an inmate in a penal
these forms.
institution that is included on Form 1040EZ, line 1.
Earned Income Worksheet— Line 1a
8
Line 8, Making Work Pay Credit
1. Enter the amount from line 1 of Form 1040EZ . . . . . 1.
2. Enter the amount of any taxable
scholarship or fellowship grant not
reported on a Form W-2 but included on
Who Can Take the Making Work Pay Credit
line 1 above. . . . . . . . . . . . . . . . . . . . . . 2.
You may be able to take this credit if you have earned income
3. Enter any amount received as a pension
from work. You cannot qualify for this credit if you are a
or annuity from a deferred
nonresident alien or can be claimed as a dependent on some-
compensation plan or a
one else’s tax return. If you are married and claim the credit on
nongovernmental section 457 plan
a joint return, nobody else is allowed to claim either you or
(enter “DFC” and the amount received in
your spouse as a dependent on his or her tax return.
the space to the left of line 1 on Form
1040EZ). This amount may be shown on
The credit must be reduced if you received a $250 economic
your Form W-2 in box 11. If you received
recovery payment during 2010. You may have received this
such an amount but box 11 is blank
payment in 2010 if you did not receive an economic recovery
contact your employer for the amount
payment in 2009, but you received social security benefits,
received as a pension or annuity . . . . . . 3.
supplemental security income (SSI), railroad retirement bene-
4. Enter the amount received for work
fits, or veterans disability compensation or pension benefits in
performed while an inmate in a penal
November 2008, December 2008, or January 2009.
institution (enter “PRI” and the amount
received in the space to the left of line 1
Use the worksheet for line 8 on the back of Form 1040EZ to
on Form 1040EZ) . . . . . . . . . . . . . . . . . . 4.
figure your making work pay credit.
5. Add lines 2 through 4 . . . . . . . . . . . . . . . . . . . . . . . 5.
Social security number.
You (or your spouse if filing jointly)
6. Subtract line 5 from line 1 . . . . . . . . . . . . . . . . . . . . 6.
must have a valid social security number on your return to
7. Enter the amount of any nontaxable combat pay
take the credit. A social security number does not include an
received. Also enter this amount on line 1b of the
identification number issued by the IRS. Only the Social Secur-
Worksheet for Line 8 (on the back of Form 1040EZ).
ity Administration issues social security numbers.
This amount should be shown in box 12
of your Form(s) W-2, with code Q. . . . . . . . . . . . . . . 7.
Effect of credit on welfare benefits.
Any refund you re-
8. Add lines 6 and 7. Enter the result here and on line
ceive as a result of the credit will not be used to determine if
1a of the Worksheet for Line 8 (on the back of Form
you are eligible for the following programs, or how much you
1040EZ) . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 8.
can receive from them. But if the refund you receive because
of the credit is not spent within a certain period of time, it can
count as an asset (or resource) and affect your eligibility.
Line 1b.
Enter on line 1b the total nontaxable combat pay
Temporary Assistance for Needy Families (TANF).
you (and your spouse if filing jointly) received in 2010. This
Medicaid and SSI.
amount should be shown in Form W-2, box 12, with code Q.
Supplemental Nutrition Assistance Program (food stamps)
and low-income housing.
Line 10.
An economic recovery payment is a $250 payment
sent to you by the U.S. Treasury during 2010 if you did not
Instructions for Worksheet for Line 8– Making Work Pay
receive an economic recovery payment in 2009 but you re-
Credit
ceived one of the types of benefits listed on line 10 in Novem-
ber 2008, December 2008, or January 2009. If you file jointly
Line 1a.
Complete the Earned Income Worksheet on this
and both you and your spouse received those benefits, you
page and enter on line 1a the amount you figured using the
worksheet if:
each may have received an economic recovery payment.
Instructions for Form 1040EZ
- 12 -

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