- April 4, 2022
Form 1040 is an IRS tax Form that can be used by the citizens of the United States to file their federal income tax returns. The Form has sections that the taxpayers have to fill, out to disclose their taxable income for the year. It also collects the personal information of the taxpayer, such as their name, address, social security number, number of dependents, etc. The filer should also report their salary, interest, pensions, capital gains, and other types of income, including social security benefits. IRS uses this form to calculate the total taxable income of the taxpayer and it also determines, the tax amount to be paid or refunded by the government.
Due date and other filing requirements of Form 1040
Form 1040 should be filed by April 15th of the tax year. Every earning citizen of the US, who is earning beyond a threshold should file their income and returns with the IRS. This is a two-page form and is can be downloaded from the IRS website. It can be sent to the IRS either by mail or by electronic filing. Apart from asking the taxpayers to report information about their income, this Form also allows them to claim their new higher standard deductions, introduced along with the tax and job cuts act. The income threshold beyond which the earning citizens of the country have to file their returns are as follows.
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- Citizens filing separately, both single and married – $12,550
- Couples filing jointly and qualifying widow or widower – $25,100
- Head of the house – $18,800.
The additional deduction is allowed for senior citizens and visually handicapped citizens. An additional deduction of $1650 is allowed for people who are above 65 years of age or below 65 years and are blind. Couples filing jointly can enjoy additional $1300 deductions, for each spouse who is blind or is over 65 years of age.
New tax legislations with Form 1040
The new tax legislation corresponding to the federal tax Form 1040 has eliminated several deductions, including deductions for fees for tax preparation, employee expenses that are not reimbursed, relocation benefits for military personnel, etc. Form 1040 new version is based on the building block approach and allows citizens to add only the required schedules to report their tax return. For example, taxpayers who receive dividends of more than $1500 should file Schedule B and those who want to claim itemized deductions should file Schedule A.
Different types of Form 1040
In some instances, the taxpayers have to file a different version of Form 1040 and their available options are as follows.
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- Form 1040- NR: Form for non-resident US citizens and for those who have business in the US
- Form 1040 – ES: People can use this Form to estimate and report quarterly taxes, unemployment compensations, pension, social security benefits, etc.
- Form 1040 X – Used to make changes in the already file 1040 forms.
- Form 1040 SR – Form for senior residents with large fonts and with no shading.
Every US citizen who earns beyond the threshold, as laid by the Government should file the federal income tax return with the IRS. It is beneficial to file it electronically, for ease of filing, to prevent errors, and to avoid penalties.
