Tax Day is April 15, and it’s still not too late to gather the documents you need to file your taxes. This includes Form 1040 from the IRS. Read on to learn more about this form and why it’s important to fill it out correctly.
Check Out: What To Do If You Owe Back Taxes to the IRS
What Is a 1040 Tax Form?
Form 1040 is the document U.S. taxpayers use to file their tax returns each year. This form is available electronically and as a paper copy. It has the following sections:
- Filing Status: Taxpayers can choose between single, married filing jointly, married filing separately, head of household or qualifying surviving spouse.
- Digital Assets: The taxpayer indicates whether they received, sold, exchanged or disposed of digital assets.
- Standard Deduction: Each taxpayer must report whether another taxpayer can claim them as a dependent.
- Dependents: The taxpayer must list each qualifying dependent, how they are related to the taxpayer and their Social Security numbers.
- Income: Taxpayers use information from W-2s and 1044-R forms to report their income, deductions and capital gains or losses.
- Tax and Credits: In this section, the taxpayer calculates the total tax owed.
- Payments: Taxpayers calculate payments made, including the FICA tax withheld from paychecks and earned income credit.
- Refund: When the amount of the credits and tax payments is greater than the total tax owed, the taxpayer receives a refund.
- Amount You Owe: When the amount of the credits and tax payments is less than the total tax owed, the taxpayer owes money.
- Third Party Designee: Taxpayers can notify the IRS if another person is allowed to discuss the return with the IRS.
- Signature: All taxpayers must sign the form.
1. Filling Out the 1040 Incorrectly Can Delay Your Refund
After submitting a 1040, many people wonder how long it takes to get a tax refund. The IRS issues most tax refunds within 21 calendar days for forms submitted electronically. However, it can take up to four weeks if the form was mailed or needs more processing time because the form is incomplete or has inaccurate information.
2. The 1040 May Not Be the Only Form You Have To File
Some taxpayers have to attach additional forms to the 1040. For example, sole proprietors who have self-employment income to report must complete a Schedule C form to declare the income (or loss) from the business as well as a Schedule SE to report the self-employment tax for that income. Individuals who claim certain deductions have to complete and include a Schedule 1 form with the 1040. Some common deductions include student loan interest, business use of your home and donations to charity.
3. You Have To Complete a 1040 Whether You Receive a Refund or Owe Money
Individuals who need to file taxes need a 1040 form, regardless of their federal tax bracket. This includes United States citizens and permanent residents who earned more than the gross income filing requirements for the year or earned more than $400 through self-employment.
The gross income threshold varies according to the individual’s filing status and age. For example, a single person younger than 65 must file a tax return if they earn more than $13,850. This goes up to $15,700 for someone 65 or older. The requirement for a married couple filing jointly is $27,700 if both spouses are under 65. If one spouse is 65 or older, they need to earn $29,200 before filing a return. This increases to $30,700 if both spouses are 65 or older.
FAQ
- What is a Form 1040 used for?
- Taxpayers use Form 1040 to report their income and certain deductions and file their income tax return each year. Individuals who are 65 years old or older also have the option to use the 1040-SR form.
- Is a 1040 the same as a W-2?
- No, a 1040 is not the same as a W-2, but you use the information included on a W-2 to complete the 1040 form. A W-2 is the form employers use to report the wages paid to an employee during the year. It also includes the amount deducted from each check for payroll taxes. All employees who earn more than $600 during the year should receive a W-2 form. Employers must file and distribute W-2s to employees by Jan. 31 each year.
- How do I get a 1040 tax form?
- The quickest way to get a 1040 form is to download a copy from the IRS's website. Other options include calling or completing an online request to have a form mailed. Libraries and local IRS Taxpayer Assistance Centers may have forms available for someone who can pick them up in person.