Create 1040 Form

What Is Form 1040?

Form 1040 is the primary income tax return form used by individuals in the United States to report their annual income, calculate their tax liability, and determine whether they owe additional taxes or are eligible for a tax refund.

Are There Supplemental Forms Associated With Form 1040?

Depending on your tax situation, you may have to submit supplemental IRS tax forms with your Form 1040.

• File a Schedule 1, Additional Income and Adjustments to Income, if you have additional income such as self-employment income, unemployment compensation, gambling winnings, cancellation of debt, or prize money.
• File a Schedule 2, Additional Taxes, if you owe taxes in addition to the federal income tax, such as the alternative minimum tax, self-employment tax, or net investment income tax.
• File a Schedule 3, Additional Credits and Payments, to claim a credit that is not claimed on Form 1040, such as the child and dependent care expense credit, residential energy credits, or education credits.
• File a Schedule A, Itemized Deductions, if you itemize deductions rather than taking the standard deduction.
• File a Schedule B, Interest and Ordinary Dividends, if you received over $1,500 in taxable interest or ordinary dividends.
• File a Schedule C, Profit or Loss From Business, to report your net self-employment income.
• File a Schedule D, Capital Gains and Losses, if you have gains or losses from the sale of a capital asset not reported elsewhere.
• File a Schedule E, Supplemental Income and Loss, if you have income or loss from rental real estate, royalties, or business interests.
• File a Schedule EIC, Earned Income Credit, to give additional information about your qualifying children for the earned income credit.
• File a Schedule F, Profit or Loss From Farming, to report farm income and related expenses.
• File a Schedule H, Household Employment Taxes, if you pay wages to a household employee such as a nanny, sitter, gardener, or housekeeper.
• File a Schedule R, Credit for the Elderly or Disabled, if you are over the age of 65 by the end of the tax year or if you were under 65 but retired on permanent and total disability, and you received disability income.
• File a Schedule SE, Self-Employment Tax, if you must pay self-employment taxes. The self-employment tax applies to individuals who report net self-employment income on the Schedule C.
• File a Schedule 8812, Credits for Qualifying Children and Other Dependents, to figure your child tax credits.

Who Is Required To File Form 1040?

Most individuals in the United States who meet the IRS definition of a taxpayer must file a Form 1040 to report their income. There are limited exceptions to this filing requirement.

• You are claimed as a dependent on someone else's tax return and have little or no income.
• You receive only Social Security benefits and have no other taxable income.

What Details Are Needed To Fill Out Form 1040?

You’ll need to have your Social Security number, filing status, and details for your spouse and any dependents you plan to claim. Additionally, gather all relevant tax documents that report your earned income and support any deductions or credits you're claiming.

Where Can I Obtain My Tax Documents for Form 1040?

If you earn wages from an employer, you’ll receive a Form W-2, Wage and Tax Statement, by the end of January before tax season begins. This form reports your total income and the taxes withheld by your employer throughout the year.

If you work as an independent contractor, you are responsible for tracking and paying self-employment taxes and income taxes on your earnings. You’ll typically receive a Form 1099-NEC, Non-Employee Compensation, for payments received throughout the previous year. These forms should be received around the end of January.

If you own a home with a mortgage, your lender will send you Form 1098, Mortgage Interest Statement. This form reports the mortgage interest you paid, mortgage insurance premiums, and any points paid on your principal residence.

Other important documents to watch for include the various 1099 series forms, which report different types of non-employment income. These forms are issued by the payers who provided the income and should be included in your tax filing if applicable.

• 1099-MISC (Miscellaneous Information): Reports various types of non-employment income, such as rent or payments to independent contractors.
• 1099-G (Certain Government Payments): Reports unemployment compensation and other taxable payments from government agencies.
• 1099-DIV (Dividends and Distributions): Reports dividend income and certain capital gains.
• 1099-INT (Interest Income): Reports interest earned from banks, credit unions, and other financial institutions.
• 1099-R (Distributions from Pensions, Annuities, Retirement or Profit-Sharing Plans, IRAs, Insurance Contracts, etc.): Reports taxable distributions from retirement accounts and similar sources.

What Does Form 1040 Include or Display?

Your income tax return summarizes all the information needed to determine your total taxable income and federal income tax liability. The top section of the return requires your details, including your filing status, name, Social Security number, and address. If you are claiming a spouse or dependents, you'll also need to provide their identifying information in this section.

The first 15 lines of the income tax return list all sources of income and deductions used to calculate your total taxable income.

Lines 16 through 24 outline your income tax liability and any applicable tax credits, helping determine your total federal income tax.

Lines 25 through 33 report federal income tax already paid through withholdings or estimated payments, as well as any refundable credits, such as the Earned Income Credit.

If the federal income taxes you’ve paid exceed your total tax liability, you’re entitled to a refund shown on Line 34.

Line 35 is where you provide your bank account details for direct deposit of your refund.

Line 36 allows you to apply part or all of your refund toward next year’s income tax.

If you haven’t paid enough in taxes during the year, Line 37 shows the amount you owe.

If applicable, Line 38 calculates any estimated tax penalty for underpayment.

The bottom section of the tax return is where you and your spouse, if filing jointly, must sign to confirm that all information provided is true and complete to the best of your knowledge. If you used a paid preparer, their name, signature, and contact information must be entered in the final section of the form.

What Is The Filing Deadline for Form 1040?

The deadline to file your Form 1040 income tax return is typically April 15 of the year following the tax year. If April 15 falls on a weekend or a federal holiday, the deadline is usually extended to the next business day.

Can I Request an Extension to File Form 1040?

Yes, you can file an extension of time to file your income tax return. The extension is good for six additional months, generally bringing the deadline to October 15.

An Extension Of Time To File Does Not Give An Extension Of Time To Pay

It’s important to understand that an extension to file your income tax return does not extend the time to pay any taxes owed. If you choose to file for an extension, you must still ensure that your federal income tax is paid in full by the original due date. Otherwise, you may incur penalties and interest on the unpaid amount.

Is There a Penalty for Filing Form 1040 Late?

Yes, there is a penalty for filing your income tax return late. The failure-to-file penalty is typically 5% of your unpaid taxes for each month (or part of a month) that your return is late, up to a maximum of 25%.

If your return is more than 60 days late, the minimum penalty is $435 (as of 2022) or 100% of the tax due, whichever is less.

Additionally, the IRS charges interest on both the unpaid taxes and the penalties until the full amount is paid.