Form 1040 is the standard federal income tax form used to report an individual’s gross income (e.g., money, goods, property, and services). It is also known as “the long form” because it is more extensive than the shorter 1040A and 1040EZ Tax Forms. Also unlike the other tax forms, IRS Form 1040 allows taxpayers to claim numerous expenses and tax credits, itemize deductions, and adjust income. While the 1040 may take longer to complete, it benefits taxpayers by giving them more opportunities to lower their tax bills.
You must file Form 1040 if any of the following apply:
- You have taxable income of $100,000 or more
- You have self-employment income of $400 or more
- You had income tax withheld from paychecks
- You made estimated tax payments, or have overpayment that applies to the current tax year
- You have itemized deductions (e.g., mortgage, interest, or charity)
- You earn income from a business, S-corporation, partnership, trust, rental, or farm
- You have sold property, stocks, bonds, or mutual funds
- You are claiming income adjustments (for tuition, educator expenses, moving expenses, or health savings accounts)
- You received an advance payment for Earned Income Tax Credit (EITC) from an employer
- You have a W-2 that shows uncollected tax (from tips or group term life insurance), or a W-2 that shows a code Z (income earned from a 409A non-qualified deferred compensation plan)
- You owe excise tax on insider stock compensation (from an expatriated corporation)
- You are a debtor in a Chapter 11 bankruptcy case (filed after October 16, 2005)
- You earn foreign wages, paid foreign taxes, or are claiming tax treaty benefits
- You owe any other special taxes (e.g., alternative minimum tax, household employment tax, recapture taxes, etc.)
