How to fill out IRS Form 1040

Almost every United States worker has to file IRS Form 1040. But even if you complete it like clockwork every tax season, navigating all your deductions and credits can be confusing. 

Filling out Form 1040 correctly isn’t just about meeting your obligations on taxable income. It’s your chance to cushion your bank statement with a generous tax refund. Who doesn’t want to keep more of their hard-earned income? 

Read on to learn who needs to file, how to identify qualifying credits and deductions, where to find tax forms, and more about how to fill out Form 1040. 

What is a 1040 tax form, and who needs to file?

So, what is a 1040 form used for? Form 1040 is the standard federal income tax form used by individuals in the U.S. to report their taxable income, claim deductions, and calculate their tax liability. This essential tax form provides a comprehensive overview of your finances, tax obligations, and potential refunds for a specific tax year.

Standard deductions vs. itemized deductions 

If filling out IRS form 1040 was a contest, the prize would be a big tax refund. This tax return form determines whether you owe more taxes to the IRS than what has already been withheld from your paychecks or if the IRS owes you a tax refund. 

How do you calculate that? Deductions. Deductions significantly impact your adjusted gross income (AGI), which determines your tax burden. There are two ways to calculate your deductions:

• Standard deduction: This is a fixed amount that reduces your taxable income. The IRS varies standard deductions based on your filing status—single, married filing jointly, married filing separately, or head of household. The standard deduction is a straightforward way to lower taxable income for many taxpayers, especially those without significant expenses.
• Itemized deductions: Instead of taking the standard deduction, you can itemize your deductions, providing a list of specific expenses. Taxpayers with dependents or significant expenses (e.g., mortgage interest payments, qualified medical costs, or charitable donations) should consider itemized deductions, as they can drastically lower your tax burden. Additionally, independent contractors can reduce their tax burden by deducting business expenses, such as supplies, equipment, and travel. 

If you aren’t sure whether to calculate your tax return with standard or itemized deductions, consult a tax preparer or use reliable tax prep software. Experts can help you navigate complicated deductions and apply credits to maximize your tax refund.

Who files? 

Most U.S. taxpayers must fill out this tax form. However, the IRS has eligibility requirements that exempt some individuals from filing Form 1040. 

Here are the most common considerations: 

• Income level: The IRS has specific gross income thresholds based on your filing status. For example, single filers for the tax year 2023 had to file if their gross income was at least $13,850, whereas heads of households had to file if their gross income was $20,800 or above. Even if you made less than the gross income threshold, you might want to file a tax return, as you could be eligible for a tax refund if you had taxes withheld by your employer.
• Self-employment: If you’re an independent contractor or self-employed individual with net earnings above $400, you must file Form 1040. 
• Age: The gross income thresholds are higher for people 65 and older, meaning you might be exempt from filing a tax return for your wages, dividends, rental incomes, and other forms of taxable income.

Reviewing your financial situation at the end of each tax year is always wise. Life changes big and small—from having a child to revamping your home office—can significantly impact your adjustable gross income and the credits, deductions, and refunds you’re eligible for. 

Additionally, taxpayers with more nuanced tax situations (e.g., foreign tax residencies or independent contractors) should consider seeking help from a professional tax preparer to ensure they file taxes compliantly. 

How to get a 1040 Form

Need help tracking down necessary tax forms? Start here:

1. IRS website: You can download and print a 1040 Form directly from the IRS website. Going straight to the source ensures you have the most current version of the tax form. You can either download a PDF or file online with the IRS using a free fillable form. 
2. IRS Taxpayer Assistance Center: You can visit a local IRS Taxpayer Assistance Center (TAC) to grab a physical copy of Form 1040. Check ahead for availability, operating hours, and appointments. Depending on your specific needs, an assistant may be able to help you find answers to your tax questions or walk you through a 1040 form example. 
3. Tax prep software: Services like TurboTax, H&R Block, and TaxAct can help with federal income tax filing. Be sure to carefully review fees for additional services, like correcting errors after filing taxes or keeping track of tax refunds.

How to fill out Form 1040

You don’t have to be a CPA to nail your tax documents. Here are some simple Form 1040 instructions to guide you through the process: 

1. Fill in your personal details: Start by entering your full name, address, and Social Security number at the top of Form 1040. If you’re filing jointly or claiming dependents, you’ll need their complete information as well. The IRS will send correspondence in the mail regarding issues with your tax return, so use a reliable address, whether it’s your current home address or place of business. Double-check that the address is accurate to avoid any issues. 
2. Calculate your income: Report all sources of income, including wages, salaries, tips, interest, dividends, or any other form of earnings. Use your Form W-2 for wages and Form 1099 for additional income. 
3. Calculate adjusted gross income: Add up your total income and apply appropriate deductions. These adjustments are called above-the-line deductions since you remove them from your gross income to calculate your adjusted gross income. Typical above-the-line deductions include student loan interest, contributions to a health savings account, and retirement savings. 
4. Analyze potential tax credits: After choosing between a standard deduction or itemized deductions, you can apply tax credits, such as a child tax credit or credit for other dependents. 
5. Determine your refund or amount owed: If the amount of total payments is larger than total tax, then the IRS owes you a refund. Calculate the amount, enter your bank details, and you’re ready for a refund. If the amount of total payments is smaller than your total tax, you owe money. You can send a check or arrange a direct deposit to the IRS. 

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