Instructions for Filing the 2023 Form 1040

The U.S. Individual Income Tax Return, or Form 1040, is the standard document for citizens and residents to file their annual income taxes with the Internal Revenue Service (IRS). For the 2023 tax year, which is filed in early 2024, this form is used to report all sources of income earned throughout the year.

Beyond reporting income, the form allows you to claim various deductions and credits, which can reduce the amount of tax you owe. The final calculation on the form determines whether you have paid the correct amount of tax, resulting in either a tax refund if you overpaid or a balance due if you underpaid.

Determining Your Filing Requirement

Whether you are legally obligated to file a federal income tax return depends on your gross income, filing status, and age. The IRS sets specific gross income thresholds each year, and you must file if your income exceeds the amount for your category. These thresholds are based on the standard deduction amount for each filing status.

For the 2023 tax year, the thresholds are based on your status and age. A single individual under age 65 must file if their gross income is $13,850 or more. For those married and filing a joint return, the threshold is $27,700 if both spouses are under 65. A head of household filer under age 65 has a filing requirement if their gross income is $20,800 or more.

Certain situations trigger a filing requirement even if your gross income is below the standard thresholds. If you have net earnings from self-employment of at least $400, you are required to file a return to pay self-employment taxes. You also must file if you owe special taxes, such as the alternative minimum tax, or if you received distributions from a tax-favored account like a Health Savings Account (HSA).

Information and Documents Needed to File

Gathering all necessary information and documents is a preparatory step that streamlines the filing process. You will need personal information for yourself, your spouse if filing jointly, and any dependents you plan to claim. This includes the full name, date of birth, and Social Security or Individual Taxpayer Identification Number (ITIN) for each person. For a refund via direct deposit, you will also need your bank account and routing numbers.

Next, collect all documents that report your income for the year. These may include:

• Form W-2 from each employer
• Form 1099-INT for interest income
• Form 1099-DIV for dividends
• Form 1099-G for unemployment compensation
• Form SSA-1099 for Social Security benefits
• Forms 1099-NEC and 1099-K for self-employment or gig work
• Form 1099-R for retirement income

Finally, gather documents that substantiate deductions and credits. This includes Form 1098 for mortgage interest paid, Form 1098-E for student loan interest, and Form 1098-T for tuition payments. Keep detailed records of any charitable contributions and medical expenses. If you are claiming a credit for child and dependent care expenses, you will need the total amount paid and the care provider’s name, address, and taxpayer identification number.

A Line-by-Line Guide to Form 1040

The main Form 1040 is a two-page document that summarizes your entire tax situation. The top of the form is for your personal information, including your name, address, and Social Security Number. You will also select your filing status, such as Single or Married filing jointly, and list all dependents.

The income section covers lines 1 through 9. Line 1a is where you report total wages, salaries, and tips from your Form W-2. Lines 2b and 3b are for reporting taxable interest and ordinary dividends, while retirement income from pensions and annuities is entered on lines 4b and 5b. Social Security benefits are reported on line 6b.

Line 10 represents your adjusted gross income (AGI), which is calculated by subtracting certain “above-the-line” deductions from your total income. These adjustments are detailed on Schedule 1 and can include deductions for student loan interest or contributions to a traditional IRA. Your AGI is a figure used to determine eligibility for many tax benefits.

The next section, covering lines 12 through 16, focuses on your deduction and tax calculation. On line 12, you will enter either your standard deduction or your itemized deductions from Schedule A. For 2023, the standard deduction for a single filer is $13,850, and for married couples filing jointly, it is $27,700. After subtracting your deduction from your AGI, you arrive at your taxable income on line 15, which is used to determine your tax liability on line 16.

Lines 17 through 24 are for reporting tax credits and other taxes. Here, you will enter amounts for credits like the Child Tax Credit from Schedule 8812 or education credits from Form 8863. This section also includes other taxes you may owe, such as self-employment tax calculated on Schedule SE, which flows from Schedule 2.

The final part of the form, lines 25 through 38, deals with payments and the final calculation. Line 25 is for the federal income tax withheld from your paychecks, as shown on your W-2. After totaling all your payments and credits, you will subtract your total tax liability. If payments are more than the tax, the difference on line 35a is your refund; if the tax is more than your payments, the amount on line 37 is what you owe.

Understanding Common Schedules and Attachments

Many taxpayers must attach additional forms, known as schedules, to report information that does not fit on the main form. These schedules provide detailed calculations for figures that are then transferred to specific lines of the 1040.

Schedule 1 is used to report “Additional Income and Adjustments to Income.” The top half is for reporting income types not on the 1040, such as business income from a sole proprietorship, alimony received, or unemployment compensation. The bottom half is for “above-the-line” deductions, which reduce your gross income, and includes items like student loan interest and educator expenses.

Schedule 2 is for reporting “Additional Taxes.” You will need this schedule if you owe taxes other than the standard income tax. This includes the Alternative Minimum Tax (AMT) and the self-employment tax that freelancers and independent contractors must pay.

Schedule 3 handles “Additional Credits and Payments.” This schedule is where you claim less common tax credits, such as the foreign tax credit or the credit for child and dependent care expenses. It also accounts for other tax payments you may have made, such as estimated tax payments.

Schedule A is the form for “Itemized Deductions.” You would file this schedule only if you choose not to take the standard deduction. It allows you to deduct certain expenses, such as state and local taxes up to a $10,000 limit, home mortgage interest, and charitable contributions.

For those with a business, Schedule C, “Profit or Loss from Business,” is necessary. This is where sole proprietors report their business income and deductible expenses, like supplies and vehicle costs, to arrive at a net profit or loss. This net profit figure is then reported on Schedule 1 and is also used to calculate self-employment tax on Schedule SE.

Schedule D is used to report “Capital Gains and Losses.” If you sold assets like stocks, bonds, or real estate, you must report the transaction on this schedule. It is used to calculate the gain or loss from the sale, which is then categorized as either short-term or long-term, as they are often taxed at different rates.

Submitting Your Completed Return

Once your Form 1040 and all schedules are complete, you must submit them to the IRS. You have two primary options for filing: electronically or by mail.

E-filing is the method recommended by the IRS. You can e-file through tax preparation software, the IRS Free File program if your income is below a certain threshold, or through a qualified tax professional. This method is the fastest way to get your return processed and receive your refund, often in less than 21 days. You will receive a confirmation that the IRS has accepted it for processing.

Alternatively, you can file a paper return by mail. If you choose this option, you must print, sign, and date your return and all accompanying schedules. The correct mailing address depends on the state you live in and whether you are enclosing a payment, so you must visit the IRS website to find the specific address. Processing for paper returns can take four weeks or longer.

After submitting your return, you can track its status. For e-filed returns, you can begin checking the status within 24 hours of the IRS acknowledging receipt. For mailed returns, you should wait at least four weeks before checking. The “Where’s My Refund?” tool on the IRS website is the primary way to monitor your refund.