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The 1040 form is a common US federal income tax form with variations including the simplified 1040EZ and 1040A. It may require attachments such as itemized deduction forms and can be filed online or on paper. Important documents to have on hand include wage statements and past tax returns.
A 1040 form is a basic US federal income tax form. One of the most common US tax documents, many Americans complete a 1040 form each year. The form consists of two main sections: one where income and family information is reported, and another where allowable deductions, credits, and other considerations are applied to the tax liability.
As an annual document, the 1040 form has been around since 1916. This means it can be, and often is, changed each year to reflect new changes, available credits, and additional information. It is important to study the 1040 form carefully to understand and apply any new or different criteria for the form.
There are several variations of the 1040 form, which means that a taxpayer completing a 1040 form must determine which form is correct for their personal situation. A 1040EZ is a simplified form that can be used for people without dependents who earn less than $100,000 United States Dollars (USD) in taxable income per year and take standardized, rather than itemized, deductions. A 1040A form is similar, but includes forms of income such as tips, dividend income, and pensions. 1040NR forms are for nonresident aliens who have earned taxable income.
There are a variety of attachments, called “schedules,” that may be needed to file a Form 1040 tax return. These include itemized deduction forms, capital gains gains or losses, farm expenses, and self-employment taxes. . In some years, additional schedules may be added if an additional temporary tax credit is available. For example, when applying for the 2009 tax year, some people were eligible for a tax credit through the M program, which was part of the government’s stimulus package for that year.
Important documents to have on hand when completing a 1040 form include wage statements, mortgage or loan statements, documentation of dividends or self-employment income for the year, Social Security numbers, and past tax returns. It can also be helpful to have a calculator nearby, as some math is usually required. The Internal Revenue Service (IRS) publishes an online and paper help booklet for each type of tax form that may also be helpful.
Most varieties of the 1040 form are available on paper and online. Some people prefer to use the online forms, as they can link to free tax help websites that help do the math and correct additional forms. Most 1040s can also be filed online, also called electronic filing, for free and anytime before the federal due date of April 15 of each year.
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