What Is IRS Form 1040?

Form 1040 is the standard individual tax return form used by the Internal Revenue Service (IRS). Whether you are an employee, a freelancer, or a retiree, this form is the starting point for filing your annual taxes.

Who Uses Form 1040?

Virtually all U.S. taxpayers are required to file a tax return using Form 1040 or one of its variants, along with the necessary schedules for reporting taxable income.

Specifically, taxpayers who meet the income level requirements listed below must file Form 1040.

Filing Thresholds for Tax Year 2025

Types of Form 1040

There are a total of 8 versions of Form 1040, each designed for different taxpayers. The most common are:

• Form 1040: The standard individual tax form used by the majority of filers.
• Form 1040-SR: Designed specifically for individuals aged 65 and older.

In addition to the basic forms, the following are also frequently used:

• Form 1040-NR: Nonresident tax form.
• Form 1040-X: Amended tax return (used to fix mistakes on a previously filed return).
• Form 1040-ES: Declaration for calculating and paying estimated tax for individuals (typically for self-employed individuals or freelancers).

Schedules and Attachments

In each specific case, you may need to complete one or more forms in addition to Form 1040 depending on your situation. Here are some of the most common:

• Schedule 1: Additional income and adjustments to income.
• Schedule 2: Additional taxes.
• Schedule 3: Additional credits and payments.
• Schedule A: Itemized deductions.
• Schedule B: Interest and ordinary dividends.
• Schedule C: Profit or loss from business.

If you suddenly need another schedule, they are all available on the IRS website.

Changes to Form 1040 with Adoption of OBBBA

With the adoption of the One Big Beautiful Bill Act (OBBBA), Form 1040 for 2025 contains significant updates.

New Deductions (Schedule 1-A)

The introduction of Schedule 1-A (Additional Deductions) allows for reporting new temporary deductions:

• Seniors: Additional deduction of $6,000 for individuals aged 65 and older ($12,000 for married couples if both qualify).
• Tip Income: Up to $25,000 of tip income is deductible.
• Overtime Pay: Up to $12,500 ($25,000 for married couples filing jointly) for qualified overtime pay.
• Auto Loans: Deduction of up to $10,000 for interest on new loans for personal vehicle purchases.

Key 2025 Updates

• Standard Deduction: Increases to $15,750 for Single/Married Filing Separately, and to $31,500 for Married Filing Jointly.
• Line 13b (Revised): Form 1040 includes a revised line to reflect total deductions from the new Schedule 1-A.
• Child Tax Credit (CTC): Increased to $2,200 per qualifying child.
• Increased SALT Limitation: State and local tax (SALT) deduction limitation increased to $40,000 for 2025.
• Adoption Credit: A new partially refundable adoption tax credit of up to $5,000 is available.
• Trump Savings Accounts: Form 4547 is now available for filing with the 2025 return to open “Trump accounts” for eligible children born between 2025 and 2028, with a government deposit of $1,000.
• TCJA Permanence: OBBBA makes the individual income tax rates and other provisions of the Tax Cuts and Jobs Act (TCJA) of 2017 permanent.

Form 1040 Filing Rules

Filing Deadlines

Form 1040 must be filed by Tax Day—the last day of the standard filing season.

• For Tax Year 2025: You must file your tax return by Wednesday, April 15, 2026.

Where to Get Form 1040

You can download the form from the IRS website. The form is interactive, so it can be completed online, printed, and mailed in paper form.

Important: Ensure that the Form 1040 you download is for the correct tax year. The year is always displayed in the center at the top of the first page.

How to Read and File Form 1040

Form 1040 consists of two pages. First, you need to provide your personal information (name, address, SSN). Then complete the following sections:

1. Filing Status & Dependents

In this section, you select your taxpayer status (Single, Married Filing Jointly, etc.). This affects your tax rates and standard deduction. You must also list any Dependents (name, SSN, relationship) to claim applicable tax benefits.

2. Income (Lines 1–9)

• Line 1: Covers wages from W-2, tips, household employee income, adoption benefits, and other earned income. (Totaled on line 1z).
• Lines 2-6: Include interest, dividends, pensions, IRA distributions, and Social Security. The form clearly separates total vs. taxable amounts.
• Lines 7-8: Reflect capital gains/losses and other income from Schedule 1.
• Line 9: Total Income.

3. Adjustments to Income (Line 10)

Income adjustments (IRA, HSA, student loan interest, etc.) are carried over from Schedule 1. They reduce total income to AGI (Adjusted Gross Income)—a key indicator for deduction eligibility.

4. Tax & Credits (Lines 12–24)

• Deductions: You choose between the Standard Deduction (e.g., $15,750 for single) or Itemized Deductions. This section now accounts for additional deductions for age, blindness, or QBI.
• Tax Calculation: Tax is calculated using tables or special forms and reduced by nonrefundable credits (Child Tax Credit, Schedule 3 credits).
• Total Tax: Other taxes (like self-employment tax) are added to determine total tax liability on Line 24.

5. Payments & Refundable Credits

This is where you indicate taxes already withheld (W-2, 1099) and estimated payments made. Refundable credits (like the Earned Income Credit) are applied here, which can be returned to you in cash even if you owe no tax.

6. Refund vs. Amount You Owe

• Refund: If payments exceed the tax, you provide details for direct deposit.
• Amount You Owe: If tax exceeds payments, this calculates what you must pay (including possible penalties).

7. Sign Here

The taxpayer (and spouse, if filing jointly) must sign and date the return. Without a signature, the return is considered unfiled.

Filing Options

Can Form 1040 Be Filed Electronically?

Yes. Not only can Form 1040 be filed electronically, but the IRS strongly encourages it. The IRS provides a list of electronic filing options on its website to reduce paper processing and speed up refunds.

Where to Send Form 1040 (Paper)

If you do not wish to file electronically, the mailing address depends on your state of residence and whether you owe taxes. The IRS provides a complete list of addresses for each state on its website.

Need Help with Your 2025 Return?

Tax law can be complex, especially with the new 2025 OBBBA changes. Gennadiy Arnautov CPA will help you:

• Correctly complete Form 1040 and all necessary schedules.
• Take advantage of all new OBBBA deductions (tips, overtime, auto loan interest).
• Avoid mistakes and penalties from the IRS.
• Optimize your tax burden.

Contact us today for a free consultation.