US Federal Tax Forms: What is Form 1040?

Federal tax form 1040 is the standard IRS used by individual taxpayers to file their annual income tax returns. On this form, you will report your taxable income and deductions for the year, to determine whether you owe additional taxes or are eligible for a tax refund.

You will need to report your wages, salary, taxable interest, capital gains, pensions, social security benefits, and any other types of income on this form. From this, your Adjusted Gross Income (AGI) will be calculated after claiming any allowed adjustments. 

Good to know

• You may also need to file supplemental 1040 forms (schedules) depending on your situation

• Filing deadline: April 15 (most years)

• Can be mailed or e-filed

• You will need to determine your filing status to complete this form correctly (see more information on this below)

• Your AGI can be further reduced by the standard deduction or your itemized deductions (using Schedule A).

Determining whether to use the standard deduction or to itemize is an important step, as it can have a significant impact on your taxable income.

Learn more about the itemized deductions in the expenses and deductions section below.

Different Types of Form 1040

Depending on your individual circumstances, you may need to file a different variation of Form 1040: 

• Form 1040-NR is for non-resident aliens or their representatives(link to previous article about tax residency). You may need to file a 1040-NR if you were engaged in trade or business in the U.S.

• Form 1040-SR is a variation of the standard 1040, specifically for seniors (age 65 and order). It is nearly identical to form 1040. 

• Form 1040-X is for taxpayers who need to make amendments to their return after having already filed a 1040. 

Form 1040 Schedules

The term “Schedule” is the IRS’ special term for “additional form” – schedules are used to provide supplemental information and calculate specific items that relate to the base form. Below is a summary of Form 1040’s schedules:

Schedule 1	For reporting common additional income sources or adjustments, such as: Alimony Gains or losses from the sale of business property Unemployment compensation Business income Educator expenses Student loan interest deduction
Schedule 2	For reporting additional taxes, divided into two parts: a. Alternative minimum tax  b. Repayment of excess premium tax credits for health insurance a. Self-employment taxes,  b. Unreported social security and Medicare tax, c. Tax on IRA’s or other tax-favored accounts,  d. Household employment taxes e. Repayment of first-time home buyer credit f. Net investment income tax
Schedule 3	For reporting additional (refundable and non-refundable) credits and payments: Child and dependent care Residential energy credits Overpayment of taxes in previous years Previously paid excess social security tax
Schedule A	Used to report all itemized deductions.
Schedule B	For reporting interest and dividend income over USD 1,500. Income of this type under USD 1,500 can be reported directly on Form 1040.
Schedule C	For reporting profit or loss from business. Typically used by independent contractors, freelancers, or owners of sole proprietorships or single-member LLCs
Schedule D	For reporting capital gains or losses from investments
Schedule E	For reporting income or losses from: Rental real estate, Royalties Partnerships S corporations Estates and trusts
Schedule F	For reporting income or expenses from farming
Schedule H	For taxpayers who employ household workers, such as nannies or caretakers
Schedule J	For farmers and fishermen who wish to average their three previous years of tax to distribute tax liability
Schedule R	For claiming senior or disability tax credit
Schedule SE	For business owners or independent contractors (who made at least USD 400), to calculate self-employment tax
Schedule 8812	For claiming the Child Tax Credit and Credit for Other Dependents

For many taxpayers, the base 1040 form is enough to complete the filing process. However, if your return is more complicated, or if you’ve chosen to itemize your deductions, or claim credits, or have additional taxes owed, you will need to complete and submit the appropriate schedules and supplementary forms, in addition to the 1040. 

If filing online, tax software can help you determine which schedules are needed. Hiring a tax professional to assist with your return may also save you significant time and money, especially if you have diverse assets and sources of income.

Further Reference and Resources for Form 1040:

• Form 1040 can be downloaded directly from the IRS website

• Complete, official instructions from the IRS can be found here

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