Internal Revenue System<\/u><\/a> by April 15 every year.\u00a0<\/b><\/p>Anyone who earns income above a certain income limit must file an individual tax return with the IRS. (Corporations and businesses have to submit different forms to report their income)<\/b><\/p>
\u00a0The IRS revised Form 1040 for the fiscal year 2018 following approval of the Tax Cuts and Jobs Act (TCJA), looking at, according to the agency, it was done to improve the filing experience for the taxpayers using the new shorter from 1040.\u00a0<\/b><\/p>
The form was billed as facilitating communication of future tax code changes and reducing the number of 1040 forms that the taxpayers needed to choose from.\u00a0<\/b><\/p>
The new Form 1040 has two pages to complete which are available on the IRS website. 1040 form can be sent by post or filed electronically on the IRS website.<\/b><\/p>
\u00a01040 tax form asks tax applicants for information about their filing statuses, such as name, address, social security number, and the number of dependents.\u00a0<\/b><\/p>
The filing status can be married filing jointly, single, head of household, married filing separately, or qualifying widow.\u00a0<\/b><\/p>
The form also asks about year-round health insurance and whether the individual wishes to contribute $3 to presidential campaign funds.<\/b><\/p>
Income Section in the 1040 tax form requires the applicant to report salaries, wages, capital gains, taxable interest, social security benefits, pensions, and other income types.\u00a0<\/b><\/p>
It also allows individuals to claim the new higher standard deduction set by the TJCA.<\/b><\/p>
This form calculates the taxable income for the year plus the deductions you want to claim. One of the steps is to calculate your adjusted gross income subtracted by any allowable adjustments.\u00a0<\/b><\/p>
When reporting the annual gross income, you can reduce the tax amount owed to the IRS through standard deductions or detailed deductions.\u00a0<\/b><\/p>
Subtracting your detailed or standard deduction from your annual gross income will show your final taxable income.\u00a0<\/b><\/p>
Most filers use the standard deduction, but you can use detailed deductions if the latter is greater than the former based on your status of filing.\u00a0<\/b><\/p>
Detailed deductions include interest paid on the mortgage, charitable deductions, local and state taxes, and medical expenses, with specific claim limits.<\/b><\/p>
When you are filing your taxes, you must indicate the amount of income tax payable to the IRS; this is known as tax liability.\u00a0<\/b><\/p>
You can claim tax credits if you have any dependents that you have mentioned in the form. For example, you can apply for a child tax credit or other eligible tax credit.<\/b><\/p>
1040 IRS form also determines if you have paid all of your income taxes or if you still owe anything.\u00a0<\/b><\/p>
If you have paid over and above your taxable income, you are entitled to receive a tax refund. If you paid less, you owe the IRS and must pay the full balance by the tax filing deadline to avoid interest and penalties.\u00a0<\/b><\/p>
If you owe the full amount and cannot pay it, it is recommended that you always submit the 1040 IRS form on time so that you don\u2019t have to pay any failure to file a penalty.\u00a0<\/b><\/p>
Any amounts due after the filing deadline will continue to miss penalties and interest, even if you ask the IRS for a payment arrangement.<\/b><\/p>\t\t\t\t\t<\/div>\n\t\t\t\t\t\t<\/div>\n\t\t\t\t<\/div>\n\t\t\t\t\t\t<\/div>\n\t\t\t\t\t<\/div>\n\t\t<\/div>\n\t\t\t\t\t\t\t\t<\/div>\n\t\t\t\t\t<\/div>\n\t\t<\/section>\n\t\t\t\t