Form 1040

Form 1040 or U.S. individual income tax return popularly termed as the “long form” is the standard IRS form individual taxpayers use to file annual income tax return. Taxpayers gather all documents as well as W-2 statements of wages and Form1099 itemizing all interests and dividends plus other sources of income. It contains 10 sections requiring the disclosure of the taxpayer’s revenue status for the taxable year. After computing the income, individuals calculate the deductions as well as exemptions to get the taxable income which determines if the individual can avail of tax refund or additional taxes to the federal government.

Taxpayers must submit Form 1040 to the IRS on or before April 15 of each taxable year. It must be filled up by individuals whose taxable income reaches a minimum of $100,000. Additionally, this form must be submitted by individuals with other types of revenues like unreported tips, or earnings from self-employment, or from being a partner or shareholder in a corporation, nontaxable distributions, or from being a beneficiary of a trust or estate. This form is also applicable for taxpayers who have household employees but failed to pay the household employment taxes as well as individuals with itemized deduction or those who claimed tax credits or adjustments to income.

Aside from claiming tax credits, Form 1040 permits the taxpayers to make a detailed report of the capital gains and losses as well as the IRS distribution tax and tax credits for retirement contribution and educational expenses. It also includes expenses on health care and interests on mortgage in the itemized deductions. This form helps determine whether an individual can receive a refund from the IRS or not and if there is a tax obligation to be paid.

Category: Tax Return Forms, Tax refund, and Tax deductions.

Link to IRS website: http://www.irs.gov/pub/irs-pdf/f1040.pdf

 

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