IRS Form 1040 "U.S. Individual Income Tax Return"

What Does the New IRS Form 1040 Look Like?

During the last revision, the form was shortened and redesigned. The redesigned version of the IRS 1040 Form includes a number of new schedules:

• Schedule 1, Additional Income and Adjustment to Income. Fill out this form to report additional income, like gambling winnings, prize money, capital gains, or unemployment compensation. This schedule also fits to claim deductions, e.g., self-employment tax, educator expenses, or student loan interest deductions;
• Schedule 2, Additional Taxes. Use this schedule when you have to make an excess advance premium tax credit repayment or to report the sum you owe for the Alternative Minimum Tax;
• Schedule 3, Non-refundable Credits. Attach this schedule to claim a nonrefundable credit, like an education credit, foreign tax credit, or general business credit. Do not use it to claim a child tax credit or a credit for other dependents;
• Schedule 4, Other Taxes. Complete this schedule to report other taxes you need to pay, e.g., household employment taxes, self-employment taxes, qualified retirement plans, and tax-favored accounts;
• Schedule 5, Other Payments and Refundable Credits. Use it to claim a refundable credit. The refundable credit claimed on this schedule does not include the American opportunity credit, additional child tax credit, and an earned income credit. Besides, you can file this schedule for other payments such as an excess social security tax withheld or the amount paid with an extension to file a request;
• Schedule 6, Foreign Address and Third-Party Designee. Fill out this schedule to report your foreign address or third-party designee.

The other federal tax Form 1040 Schedules are:

• Schedule A, Itemized Deduction. Fill out this schedule to itemize your deductions;
• Schedule B, Interest and Ordinary Dividends. Use this schedule to report taxable interests or ordinary dividends over $1,500, including those received as a nominee, financial account in the foreign country, interest from a seller-financed mortgage, interest from a bond, original issue discount (an amount less than indicated on Form 1099-OID), and other similar cases;
• Schedule C, Profit or Loss from Business (Sole Proprietorship). Submit it to report income or loss from a business you operated, as well as wages and expenses that occurred to you as a statutory employee;
• Schedule C-EZ, Net Profit from Business (Sole Proprietorship). Fill out this schedule instead of Schedule C if you operated a business as a sole proprietorship with expenses $5,000 or less;
• Schedule D, Capital Gains and Losses. Use this schedule to report the sale, exchange, or gains from involuntary conversions of capital assets;
• Schedule E, Supplemental Income and Loss. Attach it when you need to specify income and loss from trusts, royalties, rental real estate, partnership, S corporations, and residual interests in real estate mortgage investment conduit;
• Schedule EIC, Earned Income Credit. Fill it out to provide the IRS with information about qualifying children;
• Schedule F, Profit or Loss from Farming. Report income and expenses from a farm;
• Schedule H, Household Employment Taxes. Use it if you have paid cash wages that were subject to Medicare, social security, or federal unemployment taxes to a household employee;
• Schedule J, Income Averaging for Farmers and Fishermen. Use it to figure out your average income from farming or fishing over the previous 3 years;
• Schedule R, Credit for the Elderly or the Disabled. Complete this form to figure out the credit for the disabled or elderly;
• Schedule SE, Self-Employment Tax. Fill out this schedule to figure the tax you have to pay from self-employment earnings;
• Schedule 8812, Additional Child Tax Credit. Document on this form that the child you entered an individual taxpayer identification number for is a United States resident.

How to Fill Out 1040 Form?

Fill out the 1040 tax form, paying attention to the following:

1. To avoid delay, fill out and file your tax return electronically;
2. Use tax software. It will do all the calculations and help you to avoid mistakes;
3. If you fill out the paper version, keep it standard size and make sure all the entries are legible;
4. Most people need to use only a basic Form 1040. If you need to provide detailed information, fill out the applicable schedule, and submit it with the form. Arrange all the additional forms and schedules in proper order;
5. Pay special attention to the names and SSNs you enter. They must match the ones indicated on the SSN card;
6. If you are married, enter your spouse's SSN, no matter if you file your 1040 tax return jointly or separately;
7. Carefully double-check the amounts. Some lines of the form may require you to add across instead of down;
8. Do not forget to sign and date your form, as well as to specify your occupation. If you submit a joint return, both you and your spouse must sign the form;
9. Fill out either the paper version or electronic.

IRS Form 1040 Instructions

The IRS provides separate Instructions for Form 1040. The file with the detailed instructions for Form 1040 can be downloaded here. It contains explanations of terms, new rules, tax rates, fines, and penalties. The instruction file also includes the detailed step-by-step guide for completion of the form.

IRS 1040 Related Forms:

• Form 1040-C, U.S. Departing Alien Income Tax Return;
• Form 1040-NR, U.S. Nonresident Alien Income Tax Return;
• Form 1040-NR-EZ, U.S. Income Tax Return for Certain Nonresident Aliens with No Dependents;
• Form 1040-SS, U.S. Self-Employment Tax Return (Including the Additional Child Tax Credit for Bona Fide Residents of Puerto Rico);
• Form 1040-V, Payment Voucher;
• Form 1040-X, Amended U.S. Individual Income Tax Return;
• Form 1040-ES, Estimated Tax for Individuals;
• Form 2106, Employee Business Expenses;
• Form 2210, Underpayment of Estimated Tax by Individuals, Estates, and Trusts;
• Form 2441, Child and Dependent Care Expenses;
• Form 2848, Power of Attorney and Declaration of Representative;
• Form 3903, Moving Expenses.