IRS Form 1040: Definition and Instructions

Form 1040 is an Internal Revenue Service (IRS) tax form that’s used for personal federal income tax returns.

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What’s IRS Form 1040?

Form 1040 is the standard IRS form that’s used to file federal income tax returns for U.S. taxpayers. Its formal name is U.S. Individual Income Tax Return.

Related: What’s IRS Form 1099?

The different sections in the form are used to report your income, claim dependents, deductions, and credits.

After completing the form, you’ll know whether you owe an additional amount or if you’ll receive a tax refund.

While the majority of people file Form 1040, there are different variations. They’re as follows:

• Form 1040-SR. Used by citizens and residents of the U.S. who are 65 or older to file an annual income tax return.
• Form 1040-ES. Figure out and pay estimated tax.
• Form 1040-NR. Income tax return for U.S. non-resident aliens.
• Form 1040-PR. Used for self-employment tax for people that are self-employed in Puerto Rico.
• Form 1040-V. A statement that’s sent with your check or money order for any balance due.
• Form 1040-X. Make changes to your income tax return.

You may have heard of other types, such as the 1040-EZ and 1040-A. Both of the forms have been discontinued and no longer exist.

Schedules used with it

Form 1040 is two pages. However, you may need to include schedules, which are additional forms.

Schedules are used for specific types of income, credits, or reporting profit and loss for a business.

The following are different schedules and what they’re used for:

• Schedule A. Calculate itemized deductions, such as gifts, theft losses, medical and dental expenses.
• Schedule B. Report interest and ordinary dividends of more than $1,500.
• Schedule C. Report income or loss from a sole proprietorship or single-member LLC.
• Schedule D. Report capital gains and losses.
• Schedule E. Used for income or loss from rental real estate, royalties, partnerships, S corporations, estates, trusts, and residual interests in real estate mortgage investment conduits (REMICs).
• Schedule EIC. Report earned income credit for qualifying children.
• Schedule F. Report farming income and expenses.
• Schedule H. Report household employment taxes when you pay cash wages to household employees that are subject to social security, Medicare, FUTA taxes, or withholding federal income tax.
• Schedule J. Figure income tax for farmers and fishermen.
• Schedule R. Figure the credit for the elderly or disabled.
• Schedule SE. Calculate the self-employment tax due on net earnings.
• Schedule 8812. Figure additional tax credit.

Where to file

There are several ways to file a 1040 form. You can submit the federal income tax return via mail, electronically through IRS Free File, software, or accountant.

If you’d like to use tax software, the following are the best choices:

• TurboTax
• H&R Block
• TaxAct

Information that you need to file

The first step to filing Form 1040 is to figure out what your filing status is. You can file as a single, married filing jointly, married filing separately, head of household, or qualifying widow.

The information that you need can vary based on your filing status and the type of income that you earn.

However, you’ll need your personal information, dependents, amounts for income that you received, credits, deductions, and your bank account information if you’re getting a refund.

Conclusion

Understanding what Form 1040 is, how it works, and the additional information you may need will ensure that you’re prepared when it’s time to file your federal income tax return.

More resources:

• What’s the Internal Revenue Service (IRS)?
• How do federal income tax brackets work?
• What is an EIN?

Featured image courtesy of the Internal Revenue Service (IRS).