Personal Income Tax Guide: Key Strategies & Filing Advice

Expert Tips on Schedules, Filing form 1040, and Streamlining Your Tax Process

Personal Income Tax Guide: Key Strategies & Filing Advice

Expert Tips on Schedules, Filing form 1040, and Streamlining Your Tax Process

For many Americans, tax season is the time to get your income and expense records in order. Filing your taxes can seem like a daunting task. However, with expert advice, personalized services and innovative tax solutions, it doesn’t have to be. Whether it’s a quick consultation or a longer-term project, we can assist you with: 

  1. Tax strategy and alternative investment strategies
  2. Preparing, managing and reviewing tax returns
  3. Multi-state, foreign, and international filings
  4. Audit management and representation

Discover Our Simplified Onboarding Process


Yes, personal income tax rates and rules vary by state. Each state has its own tax system for personal income. 


  • State Income Tax Rates: Some states have progressive tax rates, others have a flat tax rate, and some have no state income tax at all.
  • Deductions and Credits: Each state decides on its own deductions and tax credits, which can differ significantly from federal and other state rules.
  • Filing Requirements: States also have different income thresholds and filing requirements.
  • Residency Rules: States have distinct rules for defining tax residency, impacting how you’re taxed.

To save money on your tax return, consider maximizing deductions and credits, contributing to retirement accounts, and keeping accurate and comprehensive records of expenses that may qualify for deductions or credits.

Yes, you can request a wage and income transcript from the IRS, which contains the federal tax information reported by your employer. This transcript can be obtained through the IRS’s “Get Your Tax Record” page.

However, this transcript doesn’t include state or local tax information. If you need a copy of your actual Form W-2, the quickest way is to get it from your employer. If that’s not possible, and you attached it to your paper tax return, you can request a copy of your entire return from the IRS using Form 4506​.

If your employer does not correct your Form W-2, you should still file your tax return on time. You can use Form 4852 (Substitute for Form W-2, Wage and Tax Statement). On this form, estimate your income and withholding taxes as accurately as possible.

The IRS may delay processing your return while it verifies your information. If you receive the corrected Form W-2 after filing your return and the information differs from what you reported, you may need to amend your return using Form 1040-X.

Form 1040: A pivotal element of tax filing

Understanding the nuances of tax filing is crucial for navigating your financial journey with confidence. At Fusion CPA, we’re not just about managing your taxes; we’re about empowering you with knowledge.

What is Form 1040?

Individual income tax returns are filed using Form 1040. This form helps you claim deductions and determine your tax liability to the IRS. However, if you were born before January 2, 1959, you have the option to use Form 1040-SR.

Who Needs to File Form 1040?

Most US citizens – and permanent residents who work in the United States – need to file a tax return if they make more than the minimum annual threshold. There are several tax brackets, depending on your income, which change annually. The current tax rates range from 10% to 37%.

Note that even if your income is below the minimum threshold, you can still file a return for a possible refund of any withheld federal income tax.

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

  • Earned income credit.
  • Additional child tax credit.
  • American opportunity credit.
  • Federal tax on fuel credits.
  • Premium tax credit.
  • Sick and family leave credits.

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

Which Schedules of Form 1040 apply to me?

Form 1040 includes various sections in which you can report different types of income and deductions. Depending on what you report, you may need to provide additional information. This is done through schedules.

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

  • Schedule A: To report itemized deductions such as medical expenses, mortgage interest, donations, and more.
  • Schedule B: To report interest and ordinary dividend income.
  • Schedule C: Used by sole proprietors to report income or loss. For example, independent contractors, freelancers, and single-member LLCs.
  • Schedule C-EZ: Used by qualifying small businesses and statutory employees, with expenses of $5,000 or less, instead of Schedule C.
  • Schedule D: To report sales, exchanges or some involuntary conversions of capital assets, capital gain distributions, and non-business bad debts.
  • Schedule E: To report income from rental properties, royalties, partnerships, S corporations, estates, trusts, and residual interests in REMICs.
  • Schedule EIC: Used when claiming the earned income credit (EIC), to provide the IRS with information about the qualifying child.
  • Schedule F: To report farm income and expenses.
  • Schedule H: To report household employment taxes. For example, nannies or caretakers.
  • Schedule J: To calculate income tax from farming or fishing trades.
  • Schedule R: To calculate credit for the elderly or the disabled.
  • Schedule SE: Used by self-employed individuals to calculate tax due on net earnings.
  • Schedule 8812: To calculate the additional child tax credit, which may give you a refund even if you do not owe any tax.

When do you need to file?

Form 1040 or 1040-SR must be filed by April 15, 2024. If you file after this date, you may have to pay interest and penalties.

Form 1040 Tax Filing Preparation

Take special care when submitting tax-related information to the IRS. Mistakes and incorrect data can result in delayed refunds and possible penalties. 

Keep deductions in mind when doing your taxes. For example:

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

  • Store tax documents safely. Keep W-2s, 1099s, and any other income or deduction records secure and on hand.
  • Confirm your deductions and credits. This can reduce your tax liability and increase your refund. 
  • Select the correct filing status based on marital status and dependents. This determines your tax rate, standard deduction, and eligibility for certain tax credits. 
  • Submit on time. The submission deadline is April 15, 2024.

Not sure where to start with Form 1040?

Our experts can help you.

Fusion CPA can also help you implement software solutions such as QuickBooks and Netsuite to help you stay compliant with Form 1040 regulations.

Play Video about fusion-cpa-tax-personal-income-accounting-bookkeeping

We pave the way for sustainable growth with our 3 step process

Join our client journey without the commitment of an in-house accountant, tax or finance team!

Our team will address any accounting clean-up tasks that need to be executed and analyze your accounting ecosystem for optimization opportunities and to stabilize your business.

We analyze your accounting to see where you can save with strategic tax planning. We don’t just put out the fire, but also streamline your tax deductions.

We’ve had great success with the business management system, and we love providing our clients with CFO advisory to reach their unique goals.

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.