The IRS Form 1040 is the standard document used to report all your income, deductions, credits, and taxes. Previously, the IRS offered more versions of the 1040 form depending on the complexity of your tax situation. However, the form has been simplified and restructured to cater to most taxpayers. If you’re required to file taxes with the IRS, you’ll likely use this form along with any required schedules or worksheets to report and calculate your overall tax liability. In this article, we’ll cover who’s should file form 1040, how 1040 schedules work, and the different variations of Form 1040.
Overview of IRS Form 1040
IRS Form 1040 is the federal document taxpayers use to calculate and file their taxes. Depending on which tax forms you receive and the type of income you must report, you may also need to include supporting attachments called schedules.
For example, Schedule A is used to report and calculate itemized deductions, and Schedule D is used to figure any capital gains and losses. Once these amounts are figured, they are summarized on your 1040.
When you file with TaxSlayer, Form 1040 and accompanying schedules are automatically generated based on your entries. You can also find PDF files of Form 1040, schedules, and instructions on the IRS website.
Who should file Form 1040?
Generally, if you earn more than the income threshold set by the IRS for your filing status, then you must file a tax return. The threshold varies depending on your filing status and age. If your annual earnings exceed the minimum income required to file, then you should plan on filing. In 2018, the IRS simplified tax forms by reducing the number of variations to Form 1040. As a result, most taxpayers who are required to file a tax return will use the standard version of Form 1040.
Understanding Form 1040 schedules
A schedule is an additional form used to calculate your income, deductions, or credits. The 1040 schedules provide more details, allowing you to include expenses or additional information that would impact your tax liability.
Most times, the amount calculated on your schedule will be pulled to your 1040 to calculate your overall tax return. Here are the most common schedules you may encounter when filing your tax return:
- Schedule A Itemized Deductions: If you choose to itemize your deductions rather than take the standard deduction, you will use Schedule A. This form includes deductions for medical expenses, state and local taxes, mortgage interest, and charitable contributions.
- Schedule B Interest and Ordinary Income: Earning interest or dividend income during the tax year may require filing a Schedule B. This form reports investment income from sources such as bank accounts, investments, or mutual funds.
- Schedule C Profit or Loss from a Business: Sole proprietors and single-member LLCs are required to report their business income and expenses using this schedule. Additionally, freelancers, independent contractors, and gig-workers who earn self-employment income should also use this schedule to calculate their net profit or loss.
- Schedule D Capital Gains and Losses: If you have sold any capital assets such as stocks, bonds, real estate, or other investments, then you might be familiar with capital gains taxes. All transactions that result in profit or loss are to be reported on Schedule D and taxed based on the amount of gain, the type of transaction, and your filing status.
- Schedule E Supplemental Income and Loss: This form is commonly used to report income or loss from rental real estate, royalties, partnerships, S corporations, estates, trusts, and other sources of supplemental income.
- Schedule EITC Earned Income Credit: The Earned Income Tax Credit is a refundable tax credit designed to assist low to moderate-income individuals and families. It calculates the amount of credit based on your earned income and the number of qualifying dependents.
How to fill out Form 1040
It is good practice to gather all the necessary documentation before filing your tax return. You will need your Social Security number, address, dependent information, and tax documents (W-2s, 1099s, etc.) to get started.
Depending on the type of tax documents you have, you may need additional information such as expense reports, homeownership information, medical expense records, or your previous year’s tax return, to complete your schedules. Our Tax Prep Checklist provides a reference to all the information you may require to file your tax return.
What are the different types of Form 1040?
If you are required to file a tax return, you must use Form 1040 or a variation of Form 1040. The Tax Cuts and Jobs Act (TCJA) of 2019 had a significant impact on the tax code, including Form 1040. One of the primary goals of TCJA was to simplify the tax filing process. Consequently, Form 1040A and 1040EZ were discontinued, and Form 1040 was condensed to make it more accessible for different types of taxpayers.
To determine whether you must file a tax return this year, factors such as your age, income, filing status, and dependents come into play. If you do file, you will need to create your return using one of the types of the following 1040:
- 1040 Individual Income Tax Return: Form 1040 is the standard individual return most U.S. taxpayers use to file annual taxes with the IRS. Taxpayers use this form to report all income, credits and deductions, and payments to calculate the amount of their tax liability. TaxSlayer will generate the forms and schedules you must file based on your entries.
- 1040-SR Tax Return for Seniors: The 1040-SR is an alternative return for taxpayers over the age of 65. This form caters to seniors by including lines for reporting retirement income like Social Security, IRA distributions, pensions, and annuities directly on the form, reducing the need for additional worksheets and schedules. The 1040-SR also offers a larger font and larger entry boxes for taxpayers who may complete their tax returns by hand.
- 1040-NR Nonresident Alien Income Tax Return: If you are not a U.S. citizen or a U.S. national, you may still have income subject to taxation as a nonresident alien. For example, if you have income like wages, tips, scholarships, fellowship grants, or dividends subject to U.S. tax, you will use a form 1040-NR to calculate your tax liability. To file your 1040-NR, download and complete editable forms on the IRS website. For more details, see the IRS 1040-NR instructions.
- 1040-X Amended Individual Income Tax Return: An amended return is used to make corrections to a return that has already been filed and accepted by the IRS. With TaxSlayer, current-year amended returns can be filed electronically. You can create prior year amended tax returns using TaxSlayer and file them by signing and mailing your forms to the IRS. For more answers, here are the IRS frequently asked questions on Form 1040-X and filing an amended tax return.
- 1040-ES Estimated Tax for Individuals: Some types of income, such as self-employment income, interest, dividends, and rental income, are not subject to withholding. If you receive such income, you may need to estimate and pay your taxes throughout the year. You should file Form 1040-ES if you expect to owe $1,000 or more in taxes.
- 1040-V Payment Voucher: This form acts as a voucher when mailing a check or money order with a tax return or other tax-related payment to the IRS. It helps ensure the payment is correctly applied to your account.
IRS Form 1040 FAQs
In this FAQ section, we answer common questions about Form 1040 and give you some quick insight to this must-know tax form.
Who needs Form 1040?
Almost all taxpayers will use the standard Form 1040 to file their taxes. However, if you are over 65 years old, you may use Form 1040-SR, and if you are a non-resident alien, you must use 1040-NR. Regardless of the form you use, the schedules filed with your return will vary depending on the type of income, deductions, and credits you claim.
Where do I get Form 1040?
The IRS provides electronic versions of all tax forms, including the commonly used Form 1040. You can download and print these forms for free from their website at www.irs.gov. During the tax filing season, you can also find Form 1040 and other tax forms at local libraries, post offices, or IRS offices.
If you choose to file your taxes with TaxSlayer, we create and complete Form 1040 based on the information you provide. You can then file the form electronically or print it and mail it to the IRS.
Is a 1040 the same as a W-2?
While they are both tax documents, a W-2 is different from Form 1040. A W-2 is one type of tax document that reports information like your yearly income and the amount withheld for taxes. Employers are required to provide a W-2 to document any pay or fringe benefits you received during the previous 12 months. You will use your W-2 and any other tax document to complete IRS Form 1040.
Where do you send Form 1040?
Most taxpayers choose to file their tax returns electronically as it’s the IRS preferred filing method. However, there are certain situations when you may be required to submit a paper return. If you need to mail your tax return, you will need to send it to one of the Department of the Treasury addresses, which can vary depending on the state you live in and whether you have a payment enclosed with your return.
Can I file without a 1040?
No, the IRS requires you to file your tax return using either Form 1040, 1040-SR (for taxpayers 65 or older), or 1040-NR (for taxpayers who are a non-resident alien).
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