Introduction
As a US citizen, you need to fill up an IRS 1040 Form to file your annual income tax returns. You report your income and figure out how much tax you owe or how much refund you might get via filing a 1040 form.
However, there are multiple types and schedules of 1040, and they differ from taxpayer to taxpayer. To explain that briefly, we have written this blog as a complete guide for an IRS 1040 Form. We have covered everything you need to know about Form 1040. Let’s Get Into it!
What is an IRS 1040 Form?
Individual taxpayers use the IRS 1040 Form to file their annual income tax returns with the Internal Revenue Service (IRS). An IRS 1040 Form lets you know if you owe more taxes or if you can get a refund by showing your income, deductions, and credits.
The 1040 form, officially named the U.S. Individual Income Tax Return, has different sections for entering the taxpayer’s financial details for the year. If your tax situation is more complex, you may need to add extra forms or schedules to report everything correctly.
The IRS updates Form 1040 each year to reflect changes in tax laws and rules. There are different types of 1040 forms, first, let’s know them.
Types of 1040 Form
1. Form 1040
Most taxpayers use the standard IRS 1040 Form to report their income, figure out their tax amount or refund, and claim credits and deductions.
2. Form 1040-SR
Form 1040-SR is for people aged 65 and older. It is similar to Form 1040 but features larger text and a chart to help with the Standard Deduction.
3. Form 1040-NR
Non-resident aliens who need to file a U.S. tax return must use Form 1040-NR. It is designed for the specific tax situations of non-residents, making it longer and more detailed than Form 1040.
4. Form 1040-X
Form 1040-X allows you to correct mistakes or change information on a submitted Form 1040.
5. Form 1040-ES
Form 1040-ES is used to estimate and pay quarterly taxes on income that isn't taxable, like self-employment income, interest, dividends, and rental income.
6. Form 1040-V
Form 1040-V is used as a payment slip and included in the payment when you pay any balance on your Form 1040 or 1040-NR.
Purpose of the 1040 form
When you fill out the 1040 form and start by reporting all your income and then subtracting any allowed adjustments, you get your Annual Gross Income. Your AGI is important because it influences many tax credits and limits on deductions.
Eligibility for filing the IRS 1040 Form
If your gross income is above certain limits based on your filing status and age, you must file IRS Form 1040. As per the updated IRS guidelines for the 1040 form, you become eligible for filing the IRS 1040 form.
There are some special situations as well, to file an IRS 1040 form such as:
- Paying special taxes like household employment taxes or alternative minimum tax.
- When you receive money from your health account or a Health Saving Account (HSA)
- When you earned at least $400 from self-employment, you need to file.
- When your employer did not take out Social Security or Medicare taxes from your pay
- When you repay the first-time homebuyer credit or receive advance premium tax credit payments.
Here are some additional situations where it is not necessary to file an IRS 1040 Form, but you can:
- When You are entitled to refunds for any taxes that were paid.
- You can also receive refundable credits like the additional child tax credit or the earned income credit.
- When you qualify for the Credit for Premium Taxes.
How to file the IRS 1040 Form?
To file your taxes, begin by downloading the IRS 1040 Form from the IRS website. The form has two pages that you need to complete. You can choose to file your 1040 tax form electronically or send it by mail.
On form 1040, you will need to provide personal details such as your name, address, Social Security number, and, if applicable, information about your spouse and dependents. The form also includes a question about donating $3 to the presidential campaign.
Make sure to report all types of income, including wages, salaries, capital gains, taxable interest, pensions, Social Security benefits, and any other income in the income section of the form.
In the 1040 form, some deductions are no longer available due to recent tax law changes like non-reimbursed employee expenses and tax preparation fees. Still, if you’re an active-duty military member, then you may still qualify for certain moving expense deductions.
In the building block approach of IRS Form 1040, you just need to file one main form with the necessary schedules based on your situation. You may need to file one or more of the six additional schedules along with the main form as per the requirement.


Schedules of 1040 Form
Here are the most common schedules that you may need to include with your IRS 1040 form:
1. Schedule 1 - Additional Income and Adjustments to Income
Additional taxes beyond regular income tax are reported on Schedule 2. This includes Medicare taxes, IRA taxes, self-employment taxes, and the alternative minimum tax (AMT).
You can find this in Part 1 on Line 17 and Part 2 on Line 23.
2. Schedule 2 - Additional Taxes
Additional taxes beyond regular income tax are reported on Schedule 2. This includes Medicare taxes, IRA taxes, self-employment taxes, and the alternative minimum tax (AMT).
You can find this in Part 1 on Line 17 and Part 2 on Line 23
3. Schedule 3 - Additional Credits and Payments
Schedule 3 includes extra credits and payments, such as those for education, energy-efficient home improvements, and child or dependent care costs. You can claim both refundable and non-refundable credits here.
Here, refundable credits are listed on line 31 of Form 1040, while non-refundable credits are noted on line 20.
4. Schedule A - Itemized Deductions
Instead of taking the standard deduction, taxpayers have the option to itemize their deductions on Schedule A. Common deductions include medical expenses, state and local taxes, mortgage interest, and donations to charity.
This is listed on Line 12a of Form 1040.
5. Schedule B - Interest and Ordinary Dividends
Schedule B helps taxpayers report income over $1,500 from taxable interest or dividends. It also includes interest from seller-financed mortgages and bonds. You can find this schedule on lines 2b and 3b of Form 1040.
6. Schedule C - Profit or Loss from Business
Schedule C is for freelancers, sole proprietors, and independent contractors to report their business income and expenses. This form is important for self-employed individuals to declare their earnings.
Your revenue is reported on Schedule SE and also appears on Schedule 1, Line 3.
7. Schedule D - Capital Gains and Losses
Profits or losses from selling or trading capital assets like stocks, bonds, or real estate are shown on this schedule. You need to report any capital gains or losses on Line 7 of Form 1040.
8. Schedule E - Supplemental Income and Loss
Extra money from trusts, partnerships, royalties, and rental properties is listed on Schedule E. This is useful for taxpayers earning from real estate or certain investments. You can find this income in the “Income” section of Form 1040.
9. Schedule EIC - Earned Income Credit
This schedule collects important information about your eligible children, including their Social Security number and where they live, even though it doesn't calculate the earned income credit directly.
These details are not shown on Form 1040 and are directly sent to Schedule EIC.
10. Schedule F - Profit or Loss from Farming
Farmers use Schedule F of IRS Form 1040 to report their earnings and expenses from farming. This helps the IRS monitor agricultural income.
11. Schedule H - Household Employment Taxes
Form 1040 Schedule H helps figure out the taxes owed on the wages of domestic workers like nannies or caregivers if you employ them.
12. Schedule J - Income Averaging for Farmers and Fishermen
This schedule is made for fishermen and farmers who want to distribute their earnings over three years to balance out higher yearly incomes. The income listed above is part of the total tax on Form 1040.
13. Schedule R - Credit for the Elderly or Disabled
Older or disabled taxpayers can apply for credits on Schedule R. Using this credit reduces the taxes owed on Form 1040.
14. Schedule SE - Self-Employment Tax
Schedule SE helps self-employed people figure out how much self-employment tax they owe, which covers Social Security and Medicare payments. The calculated taxes are reported on Form 1040.
15. Schedule 8812 - Child Tax Credit
This schedule is for claiming the Child Tax Credit or the Credit for Other Dependents. If the child tax credit is more than the tax you owe, Schedule 8812 helps figure out how much of it can be refunded. The refundable credit is shown on Form 1040, Line 31.
These schedules provide a detailed overview of income, deductions, credits, and taxes that aren't directly listed on Form 1040 but are critical for filing your taxes correctly. As per your tax situation, you may need to fill out some or all these schedules to complete your return.
Final Thought
So, IRS Form 1040 is the key document for reporting your income, credits, and deductions, simplifying the process. It is essential to have the right information and schedules to ensure accuracy.
But in this hectic process of filing your IRS Form 1040, you may find yourself lost in the schedules and types of Form 1040. To help you out, Virtue CPAs is here with every solution regarding your income tax to the IRS.
We are one of the trusted accounting, taxation, and advisory firms in Atlanta, GA. Our experienced team at Virtue CPAs is dedicated to understanding each client’s unique needs and delivering appropriate solutions to ensure customer satisfaction.