1040
1040 - U.S. Individual Income Tax Return
Hey there! 👋 Adulting can be tough, and filing taxes is definitely one of those things that can feel super confusing. But fear not, because we're here to break down the dreaded Form 1040 for you millennials and Gen Z'ers. 💪
Understanding Form 1040
Think of Form 1040 as the report card you give Uncle Sam every year about your finances. It basically shows how much money you made (your income) and how much tax you owe (or how much of a refund you get!). 🤑
✓ Annual filing: You typically file Form 1040 once a year, usually by April 15 of the following year.
✓ Income and deductions: The form asks for information about your income, such as wages, interest, dividends, and capital gains, as well as deductions that can reduce your taxable income.
✓ Tax calculation: Based on your income and deductions, the form calculates your federal income tax liability.
✓ Refund or payment: If you've overpaid your taxes, you'll receive a refund. If you owe more than you've already paid, you'll need to make a payment.
Note: There are different variations of Form 1040, such as 1040-SR for seniors and 1040-EZ for simpler returns. The specific form you use depends on your individual circumstances.
Who Should File Form 1040?
Most U.S. citizens and residents with taxable income are required to file Form 1040. Unless you're a super lucky young entrepreneur raking in the big bucks (congrats!), you probably need to file a 1040.
Here are some general situations where you'd file this form:
✓ You had a job and got a W-2 form.
✓ You freelanced or had a side hustle.
✓ You invested in stocks or other things that made you money.
The IRS reports that over 162.0 million individual income tax returns were filed for the 2023 tax year. This includes all forms of individual tax returns, such as Form 1040, 1040A, and 1040EZ. https://www.irs.gov/newsroom/filing-season-statistics-by-year
Key Information Included in Form 1040
Form 1040 can seem scary, but it's really just a bunch of sections asking about your financial situation. Here's a quick rundown:
✓ Your Info: Name, address, Social Security number, filing status (single, married, etc.) - basically the who you are.
✓ Money In: This is where you list all your income from jobs, investments, and other sources.
✓ Adjustments: Think of these as deductions that lower your taxable income, like student loan payments or contributions to retirement accounts.
✓ Deductions: These are expenses you can subtract from your income to further reduce your tax bill. Common ones include standard deduction (a set dollar amount) or itemized deductions (like charitable donations).
✓ Tax Credits: These are like discounts that directly reduce the amount of tax you owe. Some popular ones are the earned income credit and child tax credit.
✓ Tax Payments: This is where you show how much tax you've already paid throughout the year (from your paychecks or estimated taxes).
✓ Refund or Amount Owed: Finally, the form calculates the magic number: how much money you either get back from the government (refund) or owe them (tax bill).
Filing Deadlines and Extensions
The typical deadline for filing Form 1040 is April 15 of the following year. However, you may be eligible for an extension if you need more time to prepare your return
Filing Tips for Millennials and Gen Z
- ✓ Don't wait until the last minute! April 15th rolls around faster than you think.
✓ Gather your documents beforehand. This includes W-2s, 1099s, receipts for deductions, etc.
✓ Use simpple.tax to file your taxes and maximize your refund.
✓ Use simpple.tax to keep your tax docs and returns in one secured place.
✓ Use simpple.tax to access tax pros year-round, including assistance with tax planning, audits, or questions you may have.
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Related Terms & Shoutout
1040 Nicknames & Related Terms:
"1040 tax return," "federal income tax," "tax filing," "tax deductions," "tax credits," "tax refund", maximize your refund (or minimize your tax liability)"
Shoutout! 📣📣 filing your taxes is an important part of being a responsible adult. But with a little planning and these tips, you can conquer Form 1040 and get the tax return you deserve!
Sources and related content
simpple | tax service for millennials & gen zers
www.simpple.tax
