Form 1040 Explained

IRS Form 1040, U.S. Individual Income Tax Return, is the tax document individuals use to report their annual income and calculate their federal income tax liability or refund.

What Is Form 1040?

Form 1040 is the standard federal income tax return form used by U.S. taxpayers to file their annual tax returns. It's used to report income from all sources, claim deductions and credits, and calculate the final tax owed or refund due.

Key Sections of Form 1040

Filing Information

• Personal information and filing status
• Dependents and qualifying children
• Presidential Election Campaign Fund designation

Income Section

Report all sources of income including:

• Wages, salaries, and tips
• Interest and dividend income
• Business income or loss
• Capital gains and losses
• Retirement income
• Other income sources

Deductions

Choose between taking the standard deduction or itemizing deductions such as mortgage interest, state and local taxes, charitable contributions, and medical expenses.

Tax Credits

Claim eligible tax credits that directly reduce your tax liability, including the Child Tax Credit, Earned Income Tax Credit, and education credits.

Filing Requirements

Most U.S. citizens and residents must file Form 1040 if their income exceeds certain thresholds, which vary based on filing status, age, and type of income.

Supporting Schedules

You may need to attach additional schedules to Form 1040 for specific situations, such as Schedule A for itemized deductions, Schedule C for business income, or Schedule D for capital gains and losses.