As every American who earns a salary should pay taxes, you might be already familiar with Form 1040 or one of its variants. The IRS tax form 1040 — along with 1040A and 1040EZ options — is the document most US citizens use to file their tax returns.
Despite many people having issues with proper tax return writing, the fillable 1040 form can be easily completed online and printed out. The fillable 1040 is an essential document for filing personal federal income tax. To complete the form properly, you have to keep in mind several key points.
How to Fill out the 1040 Form
First of all, you have to keep in mind that a tax return should be filed from January 1. You also need to collect different extracts and checks from banks, insurance companies, and other financial and non-financial institutions to complete the 1040 form in the right way. The filling period usually starts on February 1, and the deadline for submission is typically on April 15 of each year. There are exceptions, however; for 2021 the deadline was extended to May 17.
Who Should Submit a US Tax Declaration?
You are required to file a printable tax return if you are a US tax resident who received income of a certain minimum amount for the entire last year. Almost all the income should be taxed. Here’s a list of the typical financials that should be taxed:
- salary, earnings, vacation pay, commissions, and tips
- shares, investment, or deposits
- profit from the sale of property, securities, assets, etc.
- pension payments
- all kinds of compensations (disability, unemployment, etc.)
- rental income
- prizes, winnings, legal compensation
- any types of grants, including a maintenance grant
The full list can be found on the official IRS site.
Who is considered a US tax resident?
US tax residents are primarily US citizens. Your taxpayer status depends on many factors, including employment, your age, and marital status. The US tax system also includes unique cases. For example, if a person does not have the right to work but receives unearned income such as alimony, dividends, rent, or other compensation, then they are considered as a tax resident. Along with that, there are situations when tax residents don’t need to report income.
How to make a proper 1040 form submission?
Tax returns are sent to the Internal Revenue Service (IRS) in two main ways:
- By mail: for those who fill out the declaration by hand
- In electronic form using an online blank form
Of course, filling out the declaration electronically is much more convenient and faster.
Filling Out Tax Returns Is Easy
Most Americans file their tax return on their own. There are many services that make the process simple and convenient now, and it takes no more than half an hour to complete the tax return form. Filling out the tax form is not too challenging; you answer the questions one by one, being careful enough not to miss anything. Just choose the right form and follow the guidelines that are usually attached to it.
Photo Credit: stock photo