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EVERYTHING YOU NEED TO KNOW

About the 1040 Tax Form

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Every taxpayer in America files a 1040

Ben Franklin talked about death and taxes, but he forgot to mention the IRS Form 1040. The 1040 is the only tax form that every American taxpayer needs to know about and is the main Internal Revenue Service (IRS) tax form. Every American adult needs to file a tax return every year, regardless of how much money they made. That's the law.

Here's what the IRS form 1040 looks like:

Image of IRS Form 1040 for U.S. Individual Income Tax Return 2021. Includes filing status, personal information, income, deductions, and credits.

The 1040 tax form reports your annual income and determines how much of that income is taxable. This form has different sections called Schedules that help you report different kinds of income, including full-time income, self-employed income and rental income, to name a few. Let's save you time and ideally money and simplify the process by looking at an overview of the IRS 1040 form. Key takeaways:

Find out how to fill out a 1040 form using different attachment forms including 1099 forms or a W-2 form
There are different sections of Form 1040, including Schedule C and Schedule SE
Learn how to file a 1040 form using different methods like e-file or by paper in the mail

Table of contents

What is a 1040 form?...Read more

Who needs to file a 1040 form?...Read more

Understanding 1040 Forms for Individual tax returns...Read more

What are the different schedules used with the 1040 Form?...Read more

How do I access the 1040 tax form?...Read more

How to file the IRS form 1040...Read more

How’s a 1099 form different from 1040?...Read more

What do I need to fill out the IRS Form 1040?...Read more

Where to mail the 1040 tax return?...Read more

What is a 1040 form?

The 1040 tax form is the holy grail of all the forms issued by the IRS. You use the 1040 form to report your tax information. For example, if you are a full-time W-2 employee, you’ll get a W-2 form from your employer listing all the tax amount that was withheld during the year. You’ll be using the information on a W-2 form, you fill out a 1040 form when filing your annual tax return in April. If you’re a freelancer, independent contractor or are self-employed, you can also report any deductions and credits you are eligible to claim on the 1040 form. You may need to attach additional forms based on the income you report.

Who needs to file a 1040 form?

Any American with income from just about any source is required to file a tax return each year, and the way to do that is with a 1040 form. Other tax forms that come under the 1040 form might also need to be filled out and attached depending on a taxpayer's form of employment and other factors, but the 1040 form is universal. Whether you are self-employed, you work for someone else as an employee or you earn income from investments, interest, etc., you'll report your income on a Form 1040. If you work as a full-time accountant and also have a gig as a landlord on rental property, for example, you’ll need to declare the income you earned from your full-time job and the rental property. Or, if you’re driving full-time for Uber, you’ll declare all the money you earn, including tips.

Fly Fin image with text explaining who needs to file 1040 form - self-employed, business owners, and freelancers for taxes.

Understanding 1040 Forms for Individual tax returns

Once a tax year, every taxpayer must fill out Form 1040, and there’s no getting around it. Luckily, all taxpayers can use the same Form 1040, which means you’re not alone in your quest to complete and file it.

Quick tip

Keep your receipts, income statements and proof of business expenses to accurately file a 1040 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.

Form 1040-ES

The most common type of income requiring estimated quarterly tax payments is income from self-employment. As a freelancer, gig worker or business owner, you must file estimated quarterly tax payments, based on what you predict you will owe to the IRS, using Form 1040-ES. Failure to do this could lead to an underpayment penalty, and no one wants to give the IRS more money than necessary. The 1040-ES will also require you to calculate your estimated tax payments, income, deductions and credits for the year. The good news is that you don’t have to make these calculations on your own. There are quarterly tax calculators that will do the work for you!

What are the different schedules used with the 1040 Form?

Filling out the IRS 1040 form isn't rocket science, but requires a basic understanding. The IRS has 1040 instructions which can help you file a complete and accurate tax return. Errors on your tax return can cost you time and money.. For some taxpayers, Schedules will need to be attached along with their tax form, but not everyone needs to attach these extra forms. In most cases, freelancers will need to at least attach Schedule C to the 1040 form. For example, if you’re self-employed, Schedule C helps calculate your taxable income after recording your business profit and loss on the form. Also, Schedule SE can help with calculating your SECA (Self-Employed Care Act) taxes, which cover your Social Security and Medicare contribution.

Schedule C: Profit or Loss from business

To report the profit and loss from your business, you will need to file the Form Schedule C. As a sole proprietor or a single business owner, this form helps you write off as many deductions as possible to save on the amount of taxes you owe. A sole proprietor is someone who does not have a company like an LLC or S-Corp. It's an unincorporated business owned by a single person. They handle the profits earned and the taxes paid on those profits. Here are some examples of sole proprietorships: catering companies, tutoring services, computer repair services, house cleaning services and running a landscaping company. Schedule C is divided into five parts: income, expenses, costs of goods sold, information on your vehicle and other expenses. The IRS then uses this information to assess your business profit and the taxes owed. Typically, when attaching Schedule C, you will also need to attach Schedule SE or Schedule Self Employment Tax along with the 1040 form.

Schedule SE: Self Employment Tax

Form 8829

How do I access the 1040 tax form?

You can download the 1040 tax form on the IRS website. You can find printed versions of the 1040 form at your local library or an IRS Tax Assistant Center.

Image with text about Form 1040, used by US taxpayers for annual income tax return. Includes instructions, schedules, refunds, credits, and deductions. #taxes #IRS

How to file the IRS form 1040

The IRS Form 1040 consists of two pages. The first page asks for general information about who you are, including your full legal name, date of birth, address, Social Security number and filing status. If you are filing a joint tax return with your spouse, add their date of birth and Social Security number. If you are claiming dependents on your tax return, you must add their name, date of birth, Social Security number and their relationship to you (the filer). You can add qualified dependents like your children or adopted children.

Reporting your income on IRS Form 1040

The next step is to report your taxable income. There are different types of taxable income that include wages, capital gains (such as stocks) and any additional income. Use lines 1 through 7 to report your income.

Image of Form 1040 with instructions for reporting income, deductions, and calculating taxes. Includes standard deduction amounts for different filing statuses.

In this section, you will also need to report any additional income you received as a freelancer on line 10. This income includes unemployment compensation, business profits or losses, dividends or real estate. Submit this additional income on the Schedule 1 Form and attach it with your 1040 tax return. You will need to calculate your Adjusted Gross Income (AGI) using that information. For additional information on the type of income to report on the Schedule1, check out the IRS Form 1040 Instructions.

Calculate your AGI

Now it’s time to calculate your Adjusted Gross Income (AGI). This is basically your income for the year after any deductions. Your AGI will always be equal to or less than your gross income. The federal government uses your AGI to determine how much of your income you will owe in taxes.

Image explaining Adjusted Gross Income used by IRS to calculate taxes. Includes deductions, eligible tax credits, and relation to gross income.

First, you need to determine your above-the-line deductions. These are items subtracted from your total income before calculating your AGI. You can reduce the amount of taxes you owe by claiming deductions. A few examples of deductions include student loan interest, alimony and health insurance premiums. When claiming deductions, you will be required to attach additional Schedule forms.

Check for credits and refund

Credits can benefit you in two ways: increasing your refund amount or lowering the amount owed.

Image showing credits for individuals including income, savings, health-care, family, dependent, and education credits. No mention of self-employment, 1099, freelancer, or taxes.

Be sure to check for your eligibility to receive any of the above credits. For example, if on line 19 your total payment is greater than line 16, which is your total tax, you have overpaid on your taxes and are eligible for a refund. No need to worry about overpaying quarterly taxes. You may qualify for a refund.

Determine how much you owe

How’s a 1099 form different from 1040?

A 1099 form is an information-sharing form at the very basic level. When you work as an independent contractor for a company, the company sends this form to the IRS to report the amount of money they paid you for a project or product. If you were hired by a local office to complete a landscaping project, the company will send a 1099 to the IRS to report how much they paid you for the landscaping project. You’ll also receive a copy of the 1099 form for your own records. If you have business transactions more than a certain amount, you have to report them to the IRS. For example, if you are a third-party payment organization like Venmo, for your online Etsy sweater business, the threshold to report payments made to self-employed individuals is more than 200 transactions or $20,000 in a year.

What do I need to fill out the IRS Form 1040?

No one wants to spend time filling out the form more than once. To avoid this, gather the required information to complete the form before sitting down to fill out the IRS Form 1040. You’ll also need your past receipts, bank statements and any 1099 forms you’ve received to fill out the 1040 form. Also, read over the Form 1040 instructions before starting to avoid errors.

Image of a list of information needed for Form 1040, including full legal names, social security numbers, dates of birth, past tax return, earnings statements, and bank account information. Relevant for taxes, self-employed, 1099, and freelancers.

When filing a 1040, always provide your bank details for direct deposit of a tax refund. The IRS changes and updates its forms regularly, so it’s best to check the IRS website for the 1040 form 2023.

Where to mail the 1040 tax return?

So you’ve followed the 1040 instructions, and you’re wondering where to file 1040. The IRS highly recommends using e-file to submit your federal tax forms, including the IRS Form 1040. If you wish to mail them, there are a few things to keep in mind:

The IRS has multiple addresses for printed tax forms.
The addresses vary based on your state and whether you include payment. You can find this info on the IRS website under “Where to File.”
Mailing addresses also differ per document
Use certified mail with a return receipt request
FedEx, UPS, DHL Express and USPS are acceptable forms of delivery
If mailing your tax return, you may receive your refund in about 6-8 weeks. If filing electronically, it will arrive in about three weeks.

1099 G form

The 1099-G form is used to report payments made by governments to individuals. Unemployment compensation should be reported on Schedule 1 (Form 1040).