IRS 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 .
- You have earned income from Self-employment.
- 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 .
- 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:
- (i) Partner in a partnership
(ii) Shareholder in an S corporation
(iii) Beneficiary of an estate or trust
- (i) Partner in a partnership
- Insurance policy dividends that are more than the premiums you paid
- Interest you received or paid on securities that were transferred between interest payment dates
- You received income from a from a foreign trust
- You’re repaying the first-time homebuyer credit.
- If you are eligible for the foreign earned income exclusion, you need to file Form 1040
- 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.
- Do you want to adjust Alternative Minimum Tax (AMT) on stock you got by exercising an incentive stock option.
- If you need to pay excise tax on insider stock compensation received from an expatriated corporation.
- If you’re reporting an original issue discount (OID) amount that doesn’t match the amount on Form 1099-OID.
- Form 1040 required to be filled if you owe household employment taxes.
- If you’re eligible for the premium tax credit, you will have to file irs tax form 1040 only.
- If you need to claim the adoption credit , then also this form is required to be filled.
- Are you’re a debtor in a Chapter 11 bankruptcy case filed after Oct. 16, 2005, then you need to file this form.
- File form 1040 , if Your employer didn’t withhold Social Security and Medicare taxes from your pay.
- You had a qualified health savings account (HSA) funding distribution from your IRA.
- Have you got any a loss related to a federally declared disaster area.
Read IRS pub on Form 1040