For the annual tax return, the United States Government makes Form 1040 available to its taxpayers. This is a fundamental document for filing taxes related to personal income. Therefore, you must learn its meaning and the way in which it can be acquired for the statement.
The deadline to submit this form is April 18. However, residents of Maine or Massachusetts have until the 19th of the same month. In case of not showing this document, you will have to pay fines and penalties. To prevent any inconvenience, here at The Look we will tell you all the key information about Form 1040.
Schedules that must accompany Form 1040
The first thing you should keep in mind is that this is a mandatory document for all those citizens who have income as individuals. Therefore, you must carry out the procedure before the Internal Revenue Service to register your data. In this way, you can calculate the taxes you need to pay or the refund that corresponds to you.
In addition, Form 1040 must be filed with certain schedules. These may vary, depending on the particular case of each taxpayer. Therefore, it is essential to know each of them. Below, we will mention them to help you.
Annex 1
It refers to the extra income that a citizen or resident can receive for different reasons. Some examples where this annex is required are the following:
- Bonuses for prizes won
- Unemployment compensation
- Winnings from gambling.
Certain deductions may also be required in taxes for different reasons. Among the most common reasons are interest paid on student loans and taxes on self-employment. Expenses for educators are also included in that annex.
Annex 2
It deals with the outstanding debts that a person may have from other taxes. For example, this may include the following:
- Self-employment tax
- Tax on the employment of domestic employees
- Additional tax on qualified retirement plans and IRAs.
This schedule is also required by the alternative minimum tax. In the case of reimbursement of the tax credit for the advance of health insurance, an additional payment is required.
Annex 3
It is needed in case you want to apply for credits that were not required on Form 1040 or 1040-SR. The most common that is usually applied in this annex are the following:
- Foreign Tax Credit
- Credits for studies
- General Business Credit
On the other hand, this document is also required if you made other disbursements such as an amount paid with a deferment request. It can also be used when there is excessive custody of the Social Security tax. In such situations, your rights are protected by the Internal Revenue Service.
How to get and file Form 1040?
This is a fairly simple process that you can do in a short time and without the need to leave your home. You just need to follow the steps below:
- Go to the official IRS website to access the PDF of Form 1040.
- Then, you will have to complete a form with the following information: Marital Status, Social Security Number, Standard Deduction, Refund, Amount You Owe, Authorized Third Party, and Signature.
Once you have completed this process, you will only have to submit the form. You can do it electronically with Free File or by email. In the first option, you will have to wait about 3 weeks, while the other takes between 6 to 8 weeks.