In December 2017, President Trump enacted a fresh tax plan, which brought about significant changes. One remarkable difference was the unification of tax forms 1040, 1040A, and 1040EZ into a single, updated Form 1040. This new form was developed to be suitable for all types of filers. When filing your taxes for the year 2019, which would typically be done in early 2020, you would utilize this updated Form 1040. Therefore, Form 1040A is not possible unless you propose a return for the tax year 2017 or any earlier year. Should you have any investigations pertaining to taxes, it would be advisable to pursue a recommendation from a monetary adviser.
Form 1040 stands out as a frequently utilized tax form to report taxable income. Grasping the intricacies of this form can significantly assist you in ensuring the accuracy and timeliness of your tax filing. Within this article, we delve into the essence of Form 1040, identify those who are required to fill it out, and provide responses to prevalent queries surrounding its usage.
What Does Form 1040 Mean?
Form 1040 serves as the primary federal tax document that individuals complete annually when submitting their tax returns. This document is a storage for vital data, including your revenues, conclusions, and tax credits, and benefits those who do not know how to fill out Form 1040. This collected intake is then utilized to calculate your tax penalty for the given year, enabling the decision of whether you are mandated to pay accessory taxes or are eligible for reimbursement.
Who is Required to Submit a 1040 Tax Form?
The necessity of filing a 1040 tax form is prevalent among most individuals who generate an income. Presented below are general directives to provide assistance, although it’s advisable to consult the IRS website for comprehensive details.
You assumably have a responsibility to file Form 1040 if any of these possibilities apply to you:
l You obtained payments from an employer over the duration of the year.
l You perform as a self-employed person.
l You are a participant in a business partnership.
l You are a recipient of benefits from an estate or trust.
l Your health savings account draws funds from an IRA.
l You obtain shares or bonus disbursements from an insurance policy that exceed your premium payments.
l You have an adoption credit to declare, or you might receive adoption benefits via your employer.
You are liable for excise tax on stock compensation from a foreign company that is publicly traded in the U.S., known as an expatriated corporation.
l You might also necessitate a 1040 form if:
l You possess unreported wages or unreported tips.
l You maintain foreign accounts.
l You are eligible for premium tax credits.
l You received funds from a foreign trust account.
Acquiring a Copy of Form 1040
Opting for tax filing software often involves inputting your pertinent details into their platform or website. Subsequently, the software can seamlessly transfer these particulars onto Form 1040. Once your tax return is completed, the software electronically submits your form to the IRS.
If you are opting for the traditional paper filing approach, you can access a Form 1040 copy from the IRS website. Moreover, accountants or tax experts may possess additional copies of these forms. Alternatively, you may enlist the services of a tax professional to handle your tax preparation, in which case they will handle the submission of your Form 1040.
Completing Form 1040: Steps to Follow
Although it is feasible to complete Form 1040 independently, enlisting professional guidance might be wise if you encounter uncertainty regarding specific sections. Should you choose to proceed with self-completion, consider these fundamental guidelines:
1. Gather Essential Documentation
The IRS requires pertinent details about you, any claimed dependents, and, if relevant, your spouse. Here’s a rundown of the documents you may need for completing the 1040 form:
l Social Security number
l Date of birth
l Previous tax return copies
l W-2 and 1099 forms
l Statements reflecting interest or dividends from financial institutions
l Proof of eligible tax credits and deductions
l Bank routing and account number
2. Provide Your Personal Details
At the form’s outset, you will input your name, indicate your tax filing status, and specify the number of dependents you are claiming. Your tax filing status is contingent upon your marital status and the individuals you financially support. For instance, you may file as the head of household if you are unmarried but provide support to other dependents. Additional filing options encompass single, married filing separately, married filing jointly, and qualified widower.
3. Provide Income Details
In the subsequent sections, you’ll have the opportunity to compute your taxable income for the year and identify any deductions you may be eligible to assert.
4. Address Each Schedule or Section
The term “schedule” is employed within tax forms to denote distinct sections of the form. While filing electronically, the transitions between paragraphs might be seamless, as the software automatically transfers you to the requisite subsequent provinces. In the event of manual completion, each section incorporates instructions that guide you to the subsequent steps. For instance, Schedule 1, Part 2 might encompass subsets dedicated to claiming deductions related to student loans or self-employment taxes. After finalizing this segment, you could proceed to Schedule 3, Part 3, if it pertains to nonrefundable tax credits.
5. Compute Your Owed Amount or Refund
An accompanying booklet, distinct yet linked to Form 1040, features a Tax Table that illustrates the applicable taxes corresponding to your adjusted gross income. If you find that your tax payments are insufficient, Form 1040 aids in the determination of the owed amount. Conversely, if you’ve remitted more taxes than necessary, Form 1040 facilitates the computation of your refund. Moreover, it captures details regarding the destination for your IRS refund delivery.
What Is the 1040 Form Filing Deadline?
Generally, the filing deadline for the 1040 form is April 15 each year, although verifying the official IRS website for accuracy is advisable. If you opt to mail your return, ensure that the postmark date is on or before April 15. Should you require an extension to complete your tax filing, the IRS allows you to request one through their website.
What if Errors Arise on Form 1040?
In the event that you’ve submitted Form 1040 and later uncovered errors, you have the option to file an amendment. The IRS offers Form 1040X for modifications, accessible on their official website. Ordinarily, the deadline for Form 1040X is within three years from your original Form 1040 submission date. The form includes sections where you can elucidate the rationale behind the correction. It’s important to note that electronic amendment submission isn’t possible. Once you’ve completed the form, you should dispatch it to the IRS through postal services.
