A US resident trying to find out how to file Form 1040 for your Individual Tax Returns?
Let us help you!
Form 1040, also known as US Individual Tax Returns, is one of the many information returns issued by the IRS. All individual taxpayers in the USA need to file this form. The IRS started accepting these returns and processing them from January 23, 2023.
In the form, the taxpayers basically disclose their taxable income so that the IRS can determine whether there are any overdue tax payments or not. If not, then it helps in calculating the tax return amount.
Filing Deadline
The deadline of filing these returns is April 18, 2023. Failing to file the return can make the IRS levy charges and penalties on taxpayers.
Therefore, one must stay prepared with the information about the income made during the previous tax year. People must also decide whether they want to apply for a standard deduction or go for itemizing a return.
Step-by-step guide to file Form 1040
Filing a tax form means you should need various other documents to act as proof for your return claim. Therefore, if you haven’t prepared the documents, go through this checklist:
- Gather the necessary documents such as Form W-2 from each of the employers you are working for, Form 1099s and Form 1099-INT for statements regarding other income and interest, and the receipts of charities or donations made during the year as well as business expenses in case of itemized returns.
- Choose the suitable filing status based on your marital status as the household expenses also play a significant role in your tax returns.
- Decide the filing mode whether you want to paper file or e-file your Individual Federal Tax Return. If you are running late or want the real time solution, e-filing the form is considered to be the right way.
NOTE: In case you owe money to someone, you must get it sorted first and look for the appropriate payment plan.
Schedules along with Form 1040
Generally, there are various schedules within Form 1040; some are lettered and others are numbered. In this section, we will be discussing the numbered schedules that you might need to fill while filing Form 1040.
- Schedule 1
This schedule is filled when there is an additional income such as money received from unemployment compensation, money received as a prize or award, money earned through gambling and so on. It also includes information about deductions incurred in student loan interest, self-employment tax, or educator expenses which ultimately increase the income.
- Schedule 2
Schedule 2 includes the additional taxes such as self-employment tax, additional tax applied on IRAs, household taxes, taxes applied on qualified retirement plans or tax-favored accounts, and any other taxes paid in advance.
- Schedule 3
In this schedule, additional credits and payments are included which are not claimed via Form 1040 or Form 1040-SR. Credits and payments such as education credits, foreign tax credit, general business credit, withheld social security tax, or payments made for filing extension.
Finally…
We hope that you are all prepared to file Form 1040 within the due time so that you can dodge the huge penalties that may apply. In case, there are still queries and other concerns related to the federal tax returns, we urge you to get in touch with an expert who can guide you successfully. You can also check about which types of 1099s apply to you for filing Form 1040.
Written by – Priyanka Rampal
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