2023 Form 1040: How to Fill It Out and File It

Form 1040 is the primary document used by individuals to file their annual federal income tax return with the Internal Revenue Service (IRS). It reports all types of income, claims eligible deductions and credits, and calculates the tax owed or refund due. The IRS updates this form annually to reflect changes in tax law; this guide addresses the 2023 version. The IRS also offers Form 1040-SR, an optional alternative with a larger font for seniors aged 65 and older, which uses the same schedules and instructions.

Required Information and Documentation for Filing

Gathering all necessary documents before you begin streamlines the filing process and helps ensure accuracy. This involves collecting personal data, income records, and documentation for any deductions or credits you plan to claim.

Personal Information

You will need the full names, dates of birth, and Social Security Numbers (SSNs) for yourself, your spouse, and any dependents. An Individual Taxpayer Identification Number (ITIN) is used if an SSN is not available. You will also need your current mailing address.

Income Documentation

A significant portion of the form relies on income-reporting documents. The most common is Form W-2, which details wages and taxes withheld. You will also need any 1099 forms you received for other types of income.

• Form 1099-INT for interest income.
• Form 1099-DIV for dividends.
• Form 1099-G for unemployment or state tax refunds.
• Form 1099-R for retirement income.
• Form SSA-1099 for Social Security benefits.
• Form 1099-NEC or 1099-K for self-employment or gig work, along with records of business income and expenses.

Documentation for Adjustments and Deductions

To reduce your taxable income, you will need documentation for adjustments and deductions. For the student loan interest deduction, you need Form 1098-E. If you contributed to a traditional IRA, you need records of those contributions.

For those who itemize deductions, more documentation is required, including Form 1098 for mortgage interest, records of state and local taxes paid (up to a $10,000 limit), receipts for medical expenses, and records of charitable contributions.

Documentation for Credits

Tax credits require specific forms. To claim education credits, you will need Form 1098-T from the educational institution. For the child and dependent care credit, you must have records of your expenses and the care provider’s information.

Bank Account Information

For the final steps, you will need your bank’s routing number and your account number. This information is used for direct deposit of a refund or direct debit of a tax payment.

Obtaining the Form

The 2023 Form 1040 and its instructions are available for download on the IRS website.

A Line-by-Line Guide to Completing Form 1040

Completing Form 1040 involves transferring information from your documents onto the correct lines of the return. The form is structured to first calculate total income, apply deductions to find taxable income, determine the tax, and finally, reconcile payments and credits.

Personal Information, Filing Status, and Dependents

The top of Form 1040 is for your personal details, including your name, Social Security Number, and address. You must also select a filing status, which impacts your standard deduction and tax rates. The options are:

• Single
• Married Filing Jointly
• Married Filing Separately
• Head of Household
• Qualifying Surviving Spouse

Following this is the section for dependents. You will list the name, SSN, and relationship for each qualifying child or relative you claim, which can make you eligible for tax benefits like the Child Tax Credit.

Income

The income section requires you to report all earnings for the year. Line 1a is for total wages, salaries, and tips from your Form W-2. Subsequent lines are for other income types like taxable interest, ordinary dividends, and IRA distributions.

Some lines require information from separate schedules, such as Schedule D for capital gains or losses. Line 8 directs you to attach Schedule 1 for other income types like unemployment. After filling in all income lines, you sum them to calculate your Total Income on Line 9.

Adjusted Gross Income (AGI) and Deductions

Next, you determine your Adjusted Gross Income (AGI) by subtracting certain “above-the-line” deductions, which are detailed on Schedule 1. These include deductions for educator expenses, student loan interest, and traditional IRA contributions. On Line 12, you subtract either the standard deduction or your itemized deductions.

For 2023, the standard deduction amounts are $13,850 for Single filers, $27,700 for Married Filing Jointly, and $20,800 for Heads of Household. If your itemized deductions on Schedule A exceed your standard deduction, you would choose to itemize. After subtracting your deductions from your AGI, you arrive at your Taxable Income on Line 15.

Tax, Credits, and Payments

With your taxable income calculated, you determine your initial tax liability on Line 16 using the tax tables in the Form 1040 instructions. This amount can be reduced by any tax credits you are eligible for. Nonrefundable credits, such as those for education or child care expenses, are calculated on Schedule 3 and entered on Line 20.

The payments section is where you account for all federal income tax you have already paid, including withholding from your W-2 and any estimated tax payments. These are totaled on Line 33.

Refund, Amount Owed, and Signature

The final section determines the outcome. If your total payments are more than your total tax, the difference is your overpayment, which will be refunded to you. If your total tax is more than your payments, you have an amount owed. You must sign and date the return, as an unsigned return is not considered valid by the IRS.

How to File Your Completed Return

Once your Form 1040 is complete, you can submit it to the IRS electronically or by mail. The IRS recommends e-filing as the fastest and most accurate method.

E-Filing (Electronic Filing)

One option is IRS Free File, a partnership that allows taxpayers with an AGI below a certain threshold ($79,000 for the 2023 tax year) to file for free. You can also use commercial tax software, which guides you through preparation and allows you to e-file, often for a fee.

Filing by Mail

If you file a paper return, mail your completed Form 1040 to the correct IRS address listed in the form’s instructions. Place Form 1040 on top, followed by any numbered schedules. Attach copies of forms showing federal tax withholding, like Form W-2, to the front of the return. Do not staple your payment check to the return; enclose it loosely in the envelope.

Handling Your Tax Bill

If you owe taxes, you have several ways to pay. IRS Direct Pay is a free service on the IRS website that allows payment from a checking or savings account. You can also pay by debit card, credit card, or digital wallet, though processing fees may apply. If mailing a payment, enclose a check or money order made payable to the “U.S. Treasury” with Form 1040-V, the payment voucher.

What to Expect After Filing

After you submit your return, you can track its progress. For e-filed returns, you can check your refund status within 24 to 48 hours using the “Where’s My Refund?” tool on the IRS website or the IRS2Go mobile app. For paper-filed returns, it can take four weeks or more for the information to become available.

To use the tool, you will need your Social Security Number, filing status, and the exact refund amount. Keep a complete copy of your tax return and all supporting documents for your records for at least three years.