Everything You Need to Know About Personal Income Tax

Filing Form 1040 | Schedules of Form 1040 | Tax filing preparation

Tax season is upon us, and for many Americans that means it’s time to get their income and expense records in order. Filing your taxes can seem like a daunting task, but it doesn’t have to be.

Form 1040 is used by individuals to file their federal income tax returns. The form helps taxpayers claim deductions, and determine their tax liability to the IRS.

Who Needs to File Form 1040?

For 2022, you will use Form 1040 or, if you were born before January 2, 1958, you have the option to use Form 1040-SR.

Most U.S. citizens – and permanent residents who work in the United States – need to file a tax return if they make more than a certain amount for the year.

Even if you do not otherwise have to file a return, you should file one to get a refund of any federal income tax withheld.

You should also file if you are eligible for any of the following credits:

  • Earned income credit.
  • Additional child tax credit.
  • American opportunity credit.
  • Credit for federal tax on fuels.
  • Premium tax credit.
  • Credits for sick and family leave

Use the Chart Descriptions below to see if you must file a return.

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Schedules of Form 1040

File Form 1040 or 1040-SR by April 18, 2023. The due date is April 18, instead of April 15, because of the Emancipation Day holiday in the District of Columbia – even if you don’t live in the District of Columbia. If you file after this date, you may have to pay interest and penalties.

Form 1040 consists of different sections in which you can report different types of income and deductions. Depending on the type of income you need to report, it may be necessary to provide additional information for specific types of income or deductions. This added information is provided in the form of schedules.

Here are some of the most common schedules of Form 1040:

  • Schedule A: This schedule is used by filers to report itemized deductions such as medical expenses, mortgage interest, donations and more.
  • Schedule B: This schedule is used by filers to report interest and ordinary dividend income.
  • Schedule C: used to report income or loss from a business operated or profession practiced as a sole proprietor. This is typically used by independent contractors, freelancers, and owners of sole proprietorships or single-member LLCs.
  • Schedule C-EZ: used instead of Schedule C by qualifying small businesses and statutory employees with expenses of $5,000 or less
  • Schedule D: used to report sales, exchanges or some involuntary conversions of capital assets, certain capital gain distributions, and nonbusiness bad debts.
  • Schedule E:  used to report income from rental properties, royalties, partnerships, S corporations, estates, trusts, and residual interests in REMICs.
  • Schedule EIC of Form 1040 or 1040-SR: used by those who claim the earned income credit (EIC) to give the IRS information about the qualifying child.
  • Schedule F: used to report farm income and expenses.
  • Schedule H: used by household employers such as those with such nannies or caretakers to report household employment taxes.
  • Schedule J: used to figure your income tax by averaging all or part of your taxable income from your trade or business of farming or fishing.
  • Schedule R: used to figure the credit for the elderly or the disabled.
  • Schedule SE: used by self-employed persons to figure the self-employment tax due on net earnings.
  • Schedule 8812: used to figure the additional child tax credit. The additional child tax credit may give you a refund even if you do not owe any tax.

When do you need to file?

File Form 1040 or 1040-SR by April 18, 2023. The due date is April 18, instead of April 15, because of the Emancipation Day holiday in the District of Columbia – even if you don’t live in the District of Columbia. If you file after this date, you may have to pay interest and penalties.

Information about refunds

The IRS can’t issue refunds before mid-February 2023 for returns that claim the earned income credit or the additional child tax credit. In this instance the entire refund will be processed following this date and not just the portion associated with these credits.

Form 1040 Tax Filing Preparation

It is advisable to take special care when submitting tax-related information to the IRS. Mistakes and incorrect data quoted in your tax forms can result in delayed refunds and possible penalties. 

There are several deductions to consider and keep in mind when doing your taxes:

These tips can assist in accurate tax preparation for Form 1040:

  1. Keep all tax documents in a safe place. Keep W-2s, 1099s, and any other income or deduction records on hand and safely stored.
  2. Confirm all deductions and credits that you are eligible for. This can reduce your tax liability and increase your refund. 
  3. Make sure you select the correct filing status. Your filing status determines your tax rate, standard deduction, and eligibility for certain tax credits. Make sure you choose the right filing status based on your marital status and dependents.
  4. Submit on time to avoid penalties. The submission deadline is April 18, 2023.
If you filed your taxes and aren’t sure, what’s next – Read our blog that answers several of the FAQ for post tax season. 

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Form 1040 additional revenue streams

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Disclaimer: This page is not intended to be the rendering of legal, accounting, tax advice, or other professional services. Articles are based on current or proposed tax rules at the time they are written, and older posts are not updated for tax rule changes. We expressly disclaim all liability in regard to actions taken or not taken based on the contents of this blog as well as the use or interpretation of this information. Information provided on this website is not all-inclusive and such information should not be relied upon as being all-inclusive.