Form 1040 Changes for the 2024 Tax Year
The IRS has made several small changes to Form 1040 for the 2024 tax year. These inflation adjustments account for the higher cost of living related to the standard deductions you can take when you file Form 1040. That’s important because these changes will impact your tax bill or refund in 2024. Here are some key changes for this year:
- Single Taxpayers: Increase in the standard deduction for single taxpayers from $13,850 to $14,600 (+$750).
- Head of Household and Those With Dependents: Increase in the standard deduction for head of household taxpayers with dependents from $20,800 to $21,900 (+$1,100).
- Married Filing Jointly: Increase in the standard deduction for married couples filing jointly from $27,700 to $29,200 (+$1,500).
| Filing Status | New Standard Deduction |
|---|---|
| Single | $14,600 |
| Head of Household and Those With Dependents | $21,900 |
| Married Filing Jointly | $29,200 |
What Is Form 1040?
Form 1040 is an IRS form that taxpayers use to file their annual taxes. Single filers, those who are married filing jointly, and those who are married filing separately all use Form 1040. Moreover, it’s important to file your form by the tax deadline—April 15 of each year.
What If I Didn't File in 2023?
If you didn’t file your 2023 federal income tax return, you’ll need to complete the 2023 Form 1040.
Types of Form 1040
IRS Form 1040 is the primary document for US residents to fulfill income tax obligations. The different types include:
- Form 1040-SR: Designed for individuals 65+, featuring enhanced readability. Seniors can choose between this or the standard version.
- Form 1040-NR: For non-resident aliens involved in US trade or business, representing estates, trusts, or deceased individuals.
- Form 1040-ES: Used by freelancers, gig workers, and business owners for estimating and paying quarterly taxes on self-employment income, interest, dividends, and rents.
- Form 1040-V: A payment voucher for taxpayers owing balances on Form 1040. It ensures efficient IRS payment processing but is not mandatory.
- Form 1040-SS: For residents of US territories like Puerto Rico or Guam, to report self-employment income and pay Social Security and Medicare taxes.
- Form 1040-X: Allows amendments to previously filed returns, correcting errors or omissions on prior Forms 1040, 1040A, or 1040EZ.
| Form | Purpose |
|---|---|
| 1040-SR | For taxpayers 65 and older. |
| 1040-NR | For non-resident aliens. |
| 1040-ES | For estimating quarterly taxes. |
| 1040-V | A voucher for tax payments. |
| 1040-SS | For U.S. territory residents. |
| 1040-X | For amending tax returns. |
Additional Schedules Used With Form 1040
You may need to attach schedules for specific deductions or additional tax obligations when filing. Some common examples include:
- Schedule A: Itemized deductions for medical expenses, mortgage interest, and charitable donations.
- Schedule C: Reports self-employment income, expenses, and business profits or losses.
- Schedule D: Calculates capital gains and losses from the sale of assets.
- Schedule E: Reports rental income, royalties, or pass-through income from partnerships and S corporations.
- Schedule SE: Calculates self-employment taxes on income over $400.
Additional schedules, like Schedule 1, 2, or 3, may apply to other income, credits, or taxes. Always review the specific requirements for your situation.
Common deductions that may be claimed on Form 1040 include:
- Standard Deduction: A fixed amount based on your tax bracket, reducing your taxable income.
- Itemized Deductions: Includes mortgage interest, state taxes, charitable contributions, and medical expenses. Beneficial if these exceed the standard deduction.
How to Fill Out a Form 1040
To fill it out yourself, follow this step-by-step guide so you can start recording your income, dependents, assets, and taxes paid, as directed on the form.
1. Enter Your Identification Information
Start by entering your name, address, Social Security number, and other personal identification information requested. It’s important to provide accurate information here because any inaccuracies could cause a delay in processing your tax return.
Review your identification information to make sure everything is correct.
2. Calculate Your Taxable Income
The next set of lines following your identification information are to determine your total taxable income. Fill out each line on the form with the information requested. Once you get to line 15, subtract any deductions on lines 12 and 13 from your adjusted gross income to determine your taxable income.
Include all income from any W2s or 1099s you receive. Here’s a breakdown of what those tax forms are for:
- Form W-2: Provided by employers to report wages paid and taxes withheld.
- Form 1099: Used for independent contractors to report income not subject to withholding, including payments from businesses.
3. Determine Your Tax Liability
Next, use the form to determine your overall tax liability. Line 16 calculates this. All lines from 16 to 38 allow you to determine whether or not you qualify for tax credits and make adjustments to determine your total tax liability after credits.
Check If You Are Owed a Refund
Your employer typically subtracts income taxes from your paycheck. You will list the taxes you’ve paid on Form 1040. Then use the form to determine if you owe additional taxes or if the IRS owes you a refund for the year.
Deductions can help you reduce your overall tax burden. If you’re self-employed, you may be able to use Form 8829 to take advantage of home-based business deductions. Form 8829 helps you determine the total amount of your household expenses you’re able to deduct on your Form 1040.
Form 1040 Checklist
Before you file, consider the following checklist:
- Include all income sources, such as 1099s, W-2s, and other earnings.
- Verify the accuracy of your identification information.
- Double-check calculations to avoid mistakes.
- Review your tax credits for eligibility and accuracy.
- Consult a professional if you’re uncertain about your filing.
How to File Form 1040
The easiest way to file your Form 1040 is electronically or by mail.
Millions of taxpayers send forms to the IRS annually. One way the agency keeps these filings organized is by providing several addresses where taxpayers can send the forms. The agency organizes these addresses largely by state and whether your envelope includes a payment. Find the correct address to send your taxes on the IRS website.
What Happens When You Don’t Submit Your Taxes on Time?
Filing your taxes on time helps you avoid these additional costs:
- Penalty Fees: A 5% monthly penalty on owed taxes, up to a maximum of 25%.
- Interest: Charged on the owed amount and any associated penalties.
- Further Action: May include liens, garnishments, or criminal charges for noncompliance.
Legal Considerations
Filing your 1040 correctly is an important step in ensuring a smooth and stress-free tax season. With the right resources and information, the process can be straightforward and manageable. That’s why Legal Templates collaborates with leading attorneys to create accurate and up-to-date templates tailored to your needs.
The Legal Templates editor is designed to guide you through filling out IRS Form 1040 and other legal documents with confidence, ensuring nothing important is overlooked. Start working on your taxes today using our intuitive editor.
Understanding any legal considerations before filing your taxes is key. If you have questions about Form 1040 or other legal forms, consulting an attorney or an accountant can provide clarity and peace of mind as you move forward.
Frequently Asked Questions
Is a 1040 the Same as a W-2?
While most employees deal with both Form 1040 and Form W-2, these forms are not the same. Form W-2 is the document employers send to you and the IRS, reporting your earnings and tax withholdings.
Form 1040 is the document US citizens and permanent residents use to report their income and taxes paid, determining whether they owe more taxes or qualify for a refund.
Who Needs to File a Form 1040?
Most Americans earning $13,850 or more annually must file Form 1040. Here are the income thresholds by filing status:
- Single filers: $13,850 or more.
- Heads of household: $20,800 or more.
- Married filing jointly: $27,700 or $29,200 if one spouse is over 65.
- Married filing separately: $5 or more.
Additionally, anyone qualifying for tax credits like the Earned Income Credit should file, even if not legally required.
Does Your Employer Send You a 1040?
No, your employer does not send you a 1040. You (or your accountant or tax prep software) must complete and file Form 1040 with the IRS.
