IRS Form 1040, also known as the U.S. Individual Income Tax Return, is the primary tax form used by individuals in the United States to report their annual income to the Internal Revenue Service (IRS). It determines the amount of federal income tax an individual owes or the refund they are entitled to receive after accounting for tax payments and credits.
What Is Form 1040 Used For?
- Report income, including wages, salaries, self-employment earnings, dividends, interest, and other types of income.
- Claim deductions, such as for mortgage interest or medical expenses.
- Apply for tax credits, like the Earned Income Tax Credit (EITC) or Child Tax Credit.
- Calculate the total tax liability for the year.
- Request a refund if too much tax was withheld during the year.
Who Uses It?
- Anyone Earning Income Above a Certain Threshold: If your income exceeds the IRS’s minimum filing requirements, you are required to file. These thresholds vary based on your age, filing status (e.g., single, married), and income type.
- Self-Employed Individuals: If you work for yourself, you’ll use this form to report your income and pay self-employment taxes.
- People with Complex Financial Situations: This includes individuals who have investment income, rental property, or significant deductions like mortgage interest or charitable contributions.
Key Deadlines
Form 1040 is typically due on April 15th, unless that date falls on a weekend or holiday, in which case the deadline is extended. Filing late or failing to file could result in penalties, so it’s essential to submit your return on time.
Additional Information you may find helpful
Form 1040-SR: The 1040-SR is a simplified tax form designed for U.S. taxpayers aged 65 and older to file their individual income taxes.
Form 1040-NR: The 1040-NR is a tax form for nonresident aliens to report U.S.-sourced income and determine their tax liability.
Form 1040-X: The 1040-X is used to amend a previously filed U.S. individual income tax return (Forms 1040, 1040-SR, or 1040-NR). It allows taxpayers to correct errors, claim overlooked deductions or credits, or adjust income reported.