1040 Form 2022 Printable, Fillable PDF – An official document used by U.S. taxpayers to submit their yearly income tax return, the IRS 1040 Form is one of those official forms. This form is split into parts in which you submit your income and deductions in order to establish whether you owe taxes or if you are eligible for a tax refund. You may be required to attach extra forms, known as schedules, to your tax return depending on the sort of income you declare.
Here’s a comprehensive guide to all of the 1040 Form variants you could encounter.
What Is The Purpose Of Having Many Versions Of The 1040 Form?
There are currently four different versions of the 1040 tax form (the 1040A and 1040EZ are no longer available):
- For the most part, taxpayers will use 1040 Form to record their income and calculate their tax for the year, as well as any refunds or extra tax that may be owing to the government.
- Form 1040-SR: This form is designed for elderly citizens who are filing their taxes (age 65 and older). It is essentially similar to 1040 Form, except it is written in bigger type and contains a chart to help taxpayers figure out how much of a standard deduction they are entitled to claim.
- Form 1040-NR: This form is for non-citizens of the United States who do not have a green card, and it is many pages longer than the other 1040 Form.
- This form is for taxpayers who need to make changes to their tax return after having previously filed a 1040 Form but before submitting an amended tax return.
So, What Exactly Is It That A 1040 Form Is For?
Taxpayers use the federal 1040 Form to figure out their taxable income and the amount of tax they owe on it. One of the first tasks is to figure out your adjusted gross income (AGI), which is calculated by first reporting your total income and then deducting any permissible adjustments, commonly known as above-the-line deductions, from that income. Your adjusted gross income (AGI) is a significant metric since it has an impact on a variety of deduction restrictions.
Your adjusted gross income (AGI) will be reported on line 11 of the 1040 Form for the tax year 2021. With either the standard deduction or the sum of your itemized deductions recorded on Schedule A, you may lower your tax liability even more. Expenses such as the following are eligible for itemized deductions:
- Interest on a Mortgage
- state and local income taxes, sales taxes, and other taxes.
- donations to nonprofit organizations, and
- medical expenses that exceed the budget
Your taxable income will be lower if you take the standard deduction rather than the itemized deductions, as long as the amount of your itemized deductions does not exceed the standard deduction for your filing status. With the implementation of the new tax law in 2018, exemption deductions will be replaced by greater child tax credits and a new other-dependent tax credit.
TurboTax will do this calculation for you and provide recommendations as to whether taking the standard deduction or itemizing would result in the best outcomes for your situation.
What Are The Various Schedules That May Be Utilized With Form 1040?
Even though 1040 Form is very short, there are a number of schedules, or extra forms, that may be used to assist taxpayers in calculating certain things that are applicable to 1040 Form. These items include:
- Schedule 1: This form is used to record a variety of frequent extra sources of income as well as modifications to previous years’ income. Alimony, earnings or losses from the sale of a business property, unemployment benefits, educator expenditures, tuition and fee deductions, and health savings account contributions are just a few of the things that are often reported on Schedule 1.
- Previously known as Schedule 2, this form is now divided into two pieces and is used to submit extra taxes. It is necessary to record alternative minimum tax and repayments of excess premium tax credits for health insurance obtained via the health insurance marketplace in the first section of this form. This section is for reporting self-employment taxes, unreported social security and Medicare taxes, additional taxes on IRAs or other tax-favored accounts, household employment taxes, repayment of first-time home buyer credit, and section 965 net tax liability for foreign corporations. The first part of this section is for reporting self-employment taxes.
- Form Schedule 3 is used to record extra credits and payments, and it is divided into two sections: refundable credits and non-refundable credits. Schedule 3 may be found on the last page of the tax return. Credits for child and dependent care expenditures, residential energy credits, overpayments of taxes in prior years, and previously paid excess social security taxes are among the types of credits listed here.
- This popular form is used to input all of the itemized deductions on your tax return. Medical and dental bills, mortgage interest, state and local taxes, charity contributions, and casualty and theft losses are all examples of expenses that might be incurred.
- If your interest and dividend income totals more than $1,500, you must use Schedule B to record it on your tax return. If you have interest and dividend income that is less than that amount, you will put it directly on Lines 2 and 3 of 1040 Form, rather than on Schedule A.
- Schedule C: This form is used to record the profit or loss made by a company entity. Independent contractors, freelancers, and owners of sole proprietorships or single-member limited liability companies (LLCs) all utilize it.
- Schedule D: This form is used to record capital gains or losses resulting from the sale of securities.
- Form Schedule E is used by people who have rental real estate, royalties, partnership income or losses, S corporation income or losses, trust income or losses, REMICs, or other pass-through businesses to report on their taxes.
- Schedule F: This form is used by farmers to record their income and costs related to their agricultural operations on Schedule F.
- When a taxpayer has domestic staff, such as a nanny or a caregiver, they should utilize Schedule H. Because it is the taxpayer’s responsibility to withhold income for social security and Medicare taxes, those amounts are included in this report.
- Agricultural and fishing businesses who choose to calculate their income tax by averaging their three prior years’ worth of taxes in order to more equitably divide their tax burden may utilize Schedule J.
- Schedule R: This form is used to claim the tax credit for seniors or people with disabilities.
- Schedule SE: This form is used to compute self-employment tax for company owners or independent contractors who had a profit of at least $400 during the previous year.
- 8812: This form is used to claim the increased child tax credit on your 2020 tax return, and it is available online. This form must be completed if the total child tax credit amount for all eligible children in your family exceeds the amount of tax you owe for the year. Otherwise, you must complete this form in order to compute the refundable component of the credit. Due to the fact that the whole child tax credit is refundable for tax year 2021, it is anticipated that Form 8812 will not be required for your tax return for that year.
The Most Current Revisions To Form 1040 Are Shown Below
The most significant change on the Federal 1040 Form is the addition of a new Line 30 for the Recovery Rebate Credit (also known as the Recovery Rebate Credit). This is for taxpayers who did not receive payments from the government, or who might have gotten a greater payment from the government, when economic impact payments (stimulus cheques) were sent in 2020 and 2021. These taxpayers will be able to claim that amount as a refundable credit in this section.
For the year 2020 alone, the “Amount You Owe” portion of1040 Form states: “For Schedule H and Schedule SE filers, line 37 may not accurately reflect the total amount of taxes you owe for the year 2020. Since the CARES Act granted employers the ability to delay payments of the employer’s part of social security tax, this deferred amount will be recorded in the payments portion of 1040 Form, Schedule 3, Line 12e, rather than in the payments section of 1040 Form, Line 12. A “Deferral for some Schedule H or SE filers” will be recorded as a result of this action.
Another change to 1040 Form that took effect in 2020 is that there are now three lines for reporting withholdings instead of the previous two. W-2 withholdings will be reported on Line 25a of 1040 Form, 1099 withholdings will be reported on Line 25b of 1040 Form, and other withholdings will be reported on Line 25c of 1040 Form.
Remember, with TurboTax, we’ll ask you a few easy questions about your life and assist you in filling out all of the necessary tax paperwork. With TurboTax, you can be certain that your taxes will be completed correctly, whether they are basic or complicated tax returns, regardless of your circumstances.