Form 1040: U S. Individual Tax Return Definition, Types, and Use

what is a tax form 1040

You’ll need to input your personal information, income and deductions to complete the form. Depending on the type of income, deductions, and credits you claim, completing Form 1040 may be simple or complicated. This overview will guide you through the basics of filling out the form. Employees paid with digital assets must report the value of assets received as wages. The Form 1040-SR was designed with larger, easier to read print than the Form 1040. Taxpayers 65 or older can file either Form 1040 or 1040-SR and taxpayers under 65 can only file Form 1040.

what is a tax form 1040

The IRS now requires most taxpayers to use Form 1040. However, taxpayers age 65 and up may be able to file using Form 1040-SR. Almost everyone in the United States needs to file IRS Form 1040.


On the second page of Form 1040, you’ll calculate your tax liability. If you’re preparing your return by hand, you’ll need to consult the IRS Instructions for Form 1040 to determine your tax using the tax tables. On the first page of Form 1040, you’ll provide your name, Social Security number, address, and information on your dependents. Not sure if you have to file a tax return this year? The top of Form 1040 gathers basic information about who you are, what tax-filing status you’re going to use and how many tax dependents you have. Prior to becoming an editor, she covered small business and taxes at NerdWallet.

  • This is the total amount of your tax liability for the year.
  • Form 1040 must be signed and dated in order to be considered valid.
  • In this section, you will also need to report any additional income you received as a freelancer on line 10.
  • SmartAsset’s free toolmatches you with up to three vetted financial advisors who serve your area, and you can interview your advisor matches at no cost to decide which one is right for you.
  • Though the question has often been referred to as the crypto or cryptocurrency question, in prior years, 1040 question asked about “virtual currencies,” a broader term.

Our TurboTax Live Full Service Guarantee means your tax expert will find every dollar you deserve. Your expert will only sign and file your return if they believe it’s 100% correct and you are getting your best outcome possible. If you get a larger refund or smaller tax due from another tax preparer, we’ll refund the applicable TurboTax Live Full Service federal and/or state purchase price paid. If you pay an IRS or state penalty because of an error that a TurboTax tax expert or CPA made while acting as a signed preparer for your return, we’ll pay you the penalty and interest.

Which IRS form to use?

If you’re unsure about an expense, you can seek unlimited help from the CPAs. Entities that give you other forms of income as a freelancer or independent contractor, such as prize money or money for healthcare, report those payments to the IRS using this 1099 form. The only exception to this rule is for nonresident aliens. They’ll use the 1040-NR form instead of the 1040 form. Apart from this, there are also other versions of a 1040 form like the Form 1040-ES, which is used for paying quarterly taxes. Find out which tax forms apply to you as a self-employed taxpayer with the Tax Form Recommender.

what is a tax form 1040

Form 1040 is not a tax statement or form that gets distributed to taxpayers. Unlike a W-2 or 1099 statement that is mailed by an employer or party you’ve contracted with, Form 1040 is available for download on the IRS website. In addition, free IRS filing platforms such as Free File Fillable Forms will provide digital copies. Last, some public courthouses or Federal buildings in your community may offer paper copies available for pick-up.

IRS requires reporting digital asset income

In addition, you can download the FlyFin app and have your taxes filed in less than fifteen minutes, saving time and money. This is an optional tax refund-related loan from Pathward, N.A.; it is not your tax refund. Loans are offered in amounts of $250, $500, $750, $1,250 or $3,500. Approval and loan amount based on expected refund amount, eligibility criteria, and underwriting. If approved, funds will be loaded on a prepaid card and the loan amount will be deducted from your tax refund, reducing the amount paid directly to you. Tax returns may be e-filed without applying for this loan.

what is a tax form 1040

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