IRS 1040 Form : 19 Reasons You Are Compelled to File This Tax Return Form !

19 Reasons Why You Must Use IRS FORM 1040

irs formIRS Form 1040 is one of the most comprehensive individual tax return form in comparison to other two popular tax return form for Individuals – IRS 1040EZ and tax Form 1040A . It is true that when you sit to think about filing tax return first question is to decide ” what tax form do I use ?” the Form 1040 requires lots of data and information , but this also provides maximum chance of tax deduction and claim of expense by a tax payer. This post is , however , enlisting  circumstances when an Individual tax payer will have to file his/her tax return in irs tax forms only and not in other types :

19 Compelling Reasons For IRS Form 1040

The list is comprehensive and in following situation you are bound to file federal tax return form 1040 only .

  1. You have earned income from Self-employment.
  2. Tips in whatever form is an  income . If one receives $ 20 tips or more in a calendar month , it is considered part of your wages. Therefor it must be reported to the employer. If you forgot to inform your employer income from tips , you need to file the IRS form 1040 .
  3. When you are partner of a firm or a shareholder in S corporation or maybe a beneficiary of an estate or trust , your income is first generated there and then passed on to you . So , if you received income  as one of these in a tax year , your will have to file form 1040:
    1. (i) Partner in a partnership
      (ii) Shareholder in an S corporation
      (iii) Beneficiary of an estate or trust
  4. Insurance policy dividends that are more than the premiums you paid
  5. Interest you received or paid on securities that were transferred between interest payment dates
  6. You received income from a  from a foreign trust
  7. You’re repaying the first-time homebuyer credit.
  8. If you are eligible for the foreign earned income exclusion, you need to file Form 1040
  9. Residents of Puerto Rico or American Samoa can exclude income earned from those places. If you are a resident and earned any income from Puerto Rico or American Samoa , you need to file Form 1040.
  10. Do you want to adjust Alternative Minimum Tax (AMT)  on stock you got by exercising an incentive stock option.
  11. If you need to pay excise tax on insider stock compensation received from an expatriated corporation.
  12. If you’re reporting an original issue discount (OID) amount that doesn’t match the amount on Form 1099-OID.
  13. Form 1040 required to be filled if you owe household employment taxes.
  14. If you’re eligible for the premium tax credit, you will have to file irs tax form 1040 only.
  15. If you need to claim  the adoption credit , then also this form is required to be filled.
  16. Are you’re a debtor in a Chapter 11 bankruptcy case filed after Oct. 16, 2005, then you need to file this form.
  17. File form 1040 , if Your employer didn’t withhold Social Security and Medicare taxes from your pay.
  18. You had a qualified health savings account (HSA) funding distribution from your IRA.
  19. Have you got any  a loss related  to a federally declared disaster area.

Read IRS pub on Form 1040

1 Comment
  1. […] must pass Substantial Presence Test by 15th April . But you can apply for the extension of filing Form 1040. Please talk to you tax lawyer in this […]

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