What is the 1040 form?
Form 1040 is the basic form of federal US income tax. One of the most common tax documents in the US, the 1040 form is filled in many Americans every year. The form consists of two main sections: one where information about income and family is reported and the other, where the tax liability applies to permissible deductions, credits and other considerations.
As an annual document, Form 1040 has existed since 1916. This means that it can be and often changes every year to reflect new modifications, available credits and other information. It is important to carefully study the 1040 form to understand and use any new or different criteria for the form.
There are several variations of the 1040 forms, which means that the taxpayer that fills in 1040 must find out which form is correct for its personal situation. 1040EZ is a simplified form that can be used for people without dependent people who earn less than $ 100,000 (USD) in taxable income annually and standardized mThey are standardized, rather than items, deductions. The 1040a form is similar, but includes revenue forms such as tips, dividends of income and pensions. The 1040NR forms are designed for aliens who are not a resident who have earned a taxable income.
There are a number of connected documents called "plans" that may be needed to file a 1040 form. These include detailed deduction forms, profits or loss of capital gains, agriculture and self -employment taxes. Other plans may be added in some years if another temporary tax credit is available. For example, when applying for the tax year 2009, some people were eligible for a tax credit through the M Plan, which was part of the government package for this year.
Important documents to be at hand when filling in form 1040 include wage reports, HYFooling or extracts from loans, dividend documentation or income from self -employment for Year, social security figures and past tax returns. It may also be useful to have a calculator nearby because some mathematics is usually required. The Internal Revenue Service (IRS) publishes paper and brochure for help for each type of tax form, which can also be useful.
Most varieties 1040 are available in paper and online formats. Some people prefer to use online forms because they can link to free websites that help in performing mathematical calculations and fix other forms. Most 1040s can also be administered online, also called electronic submissions, free of charge and at any time before the federal due date of 15 April each year.