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1040 Tax Form

Form 1040 The Form 1040, U.S. Individual Income Tax Return, is the starting form for personal (individual) Federal income tax returns filed with the Internal Revenue Service (IRS) in the United States. The first Form 1040 was published for use for the tax years 1913, 1914, and 1915. Beginning with the tax year 1916, Form 1040 was converted to an annual form.

Income tax returns for individual calendar year taxpayers are due by April 15 of the next year. Form 1040 consists of two full pages not counting attachments. The first page collects information about the taxpayer(s), dependents, income items, and adjustments to income. The second page calculates the allowable deductions and credits, tax due given the income figure, and applies funds already withheld from wages or estimated payments made towards the tax liability.

Form 1040 has 11 attachments, called "schedules" (Schedules A and B are printed on opposite sides of the same sheet), which may need to be filed depending on the taxpayer:

  • Schedule A - itemizes allowable deductions against income; instead of filling out Schedule A, taxpayers may choose to take a standard deduction of between $5,150 and $14,300, depending on age, filing status, and whether the taxpayer and/or spouse is blind.
  • Schedule B - enumerates interest or dividend income, and is required if either interest or dividends received during the tax year exceed $1,500 from all sources.
  • Schedule C - lists income and expenses related to self-employment, and is used by sole proprietors. (Schedule C has a smaller version, the C-EZ, which is used for very simple self-employment situations.)
  • Schedule D - is used to describe capital gains and losses incurred during the tax year, and to calculate the tax amount due given the special reduced tax rates applied to capital gains.
  • Schedule E - is used to report income and expenses arising from the rental of real property, royalties, or from pass-through entities (like trusts, estates, partnerships, or S corporations)
  • Schedule EIC - is used to document a taxpayer's eligibility for the Earned Income Credit.
  • Schedule F - is used to report income and expenses related to farming.
  • Schedule H - is used to report taxes owed due to the employment of household help.
  • Schedule J - is used when averaging farm income over a period of several years.
  • Schedule R - is used to calculate the Credit for the Elderly or the Disabled.
  • Schedule SE - is used to calculate the self-employment tax owed on income from self-employment (such as on a Schedule C or Schedule F, or in a partnership).

Any full-time resident individual U.S. income taxpayer can use the standard Form 1040. Even though it takes longer to fill out, Form 1040 can handle any tax situation no matter how complex. You must use Form 1040 if:

  • You have income of $100,000 or more
  • You are itemizing your deductions (such as mortgage interest or charity)
  • You sold stocks, bonds, mutual funds, or property
  • You have income from a rental, business, farm, S-corporation, partnership, or trust
  • You are claiming adjustments to income for educator expenses, tuition and fees, moving expenses, or health savings accounts.
  • You have foreign wages, paid foreign taxes, or are claiming tax treaty benefits.

IRS Instructions for From 1040 - http://www.irs.gov/instructions/i1040gi/index.html

Form 1040A

The Form 1040A (nicknamed the "short form") is a shorter version of the Form 1040 U.S. individual income tax return. Use of Form 1040A is limited to taxpayers with taxable income below $100,000 who take the standard deduction instead of itemizing deductions.

Most taxpayers qualify to use Form 1040A, often called the "short form." This form allows you to claim the most common adjustments to income.

  • Your total income is under $100,000
  • Any age, any filing status
  • You can claim the following adjustments to income: penalty for early withdrawal of savings, IRA contributions, student loan interest, and jury duty pay given to your employer
  • You can claim the following tax credits: Child and dependent care credit, Credit for the elderly and disabled, Education credits, Retirement savings contributions credit, Child tax credit, Earned income credit, Telephone excise tax credit.
  • You have income from wages, interest, dividends, capital gain distributions, IRA or pension distributions, unemployment compensation, or Social Security benefits

You cannot use Form 1040A if you want to itemize your deductions. Most taxpayers qualify to use Form 1040A, so you might want to begin with this tax form. But just to be sure, look over all the types of income and deductions found on the longer Form 1040.

IRS Instructions for From 1040A - http://www.irs.gov/instructions/i1040a/index.html

Form 1040EZ

The Form 1040EZ, (nicknamed the "easy form"), Income Tax Return for Single and Joint Filers with No Dependents is a simplified, six-section Federal income tax return, issued by the United States' Internal Revenue Service. Its use is limited to taxpayers with taxable income below $100,000 (as of tax year 2006) who take the standard deduction instead of itemizing deductions.

You can use Form 1040EZ, the shortest and easiest federal tax form, if:

  • Your total income is under $100,000
  • Your interest income is under $1,500
  • You and your spouse are under 65 years old
  • Your filing status is single or married filing jointly.
  • You have income only from wages, interest, unemployment compensation, and Alaska Permanent Fund dividends
  • You are claiming only the standard deduction
  • You may claim the Earned Income Credit
  • You may claim the Telephone Excise Tax Refund
  • You do not have any adjustments to income
  • You are not claiming any other tax credits

IRS Instructions for From 1040A http://www.irs.gov/instructions/i1040ez/index.html