Let’s take a close look at US Form 1040. What do you know about it? How to submit it properly? Do you actually need to submit it or not? Take a close look at this article to find out the answers.
After that, you can easily sign and send the form using PDF.co E-Sign application.
About Form 1040
This is a totally standard 2-page form listed among other commonly used US forms. It constitutes a part of the whole set of Internal Revenue Service (IRS) governmental forms. It is made for American taxpayers to easily provide information about their annual income tax returns.
The sections of the form have to be completed by taxpayers. The goal is to show their taxable income for the current year. The form helps to realize if they can be granted a tax refund.
In other words, the IRS Form 1040 states the tax liability of individuals.
What to Submit in Form 1040?
Most commonly, you will need to showcase your filing status and the number of dependents. A specific income section allows you to specify taxable interests, capital gains, salary and more.
This form can help you get deductions for moving or education expenses as well as retirement contributions and others.
Sometimes, you need to complete additional sections of the form. For example, if you get dividends of more than $1,500, you will need to file it in Schedule B. It is a specific section for ordinary dividends.
Form 1040 includes several extra sections that allow you calculating credits or deductions you’re eligible for.
Why Do You need to File Form 1040?
It is a specific form that not everyone needs to complete for the US government. It depends on certain conditions whether or not you need to file IRS # 1040.
Independent freelancers, sometimes, need to complete this form if they claim to be sole proprietors.
In other words, here are the cases when you are required to file your income tax:
You earn at least $100,000;
Your self-employment income is greater than $400;
You have itemized deductions you wanna use;
You’re in partnership or shareholding;
You’re a beneficiary of a trust.
In this PDF.co selection, we’re talking about the most popular US forms that you can use in everyday life situations. You’re probably familiar with most of them and have already submitted them. If not, take a look at how you can fill in US Individual Tax Return Form.
For your notice, you will find other tutorials here:
First of all, you will have to download the IRS Form 1040 from the official website.
The form is represented by a few sections where you report your gross income, deductions, and eligible credits.
You will need to have other financial forms ready, in particular, W2 form.
1.The first section is where you file all your sources of income for the past year. You need to calculate the overall income here. Tax-exempt sources should not be specified here.
Note: if you are an independent freelancer and you completed Form 1099-MISC, you will fill in Section C in IRS Form 1040.
2. After that, it is time to calculate your deductions. You can use the standard procedure or itemize your deductions. In order to define the deductions correctly, you might use exemptions for yourself and for your dependents (just one per individual).
3. The last step is where you define your tax liability. In this TABLE, you will find what is your actual tax depending on your income. That is how, you will know whether you are eligible for refunds, or you owe the IRS.
4. Now, you can sign the form safely and submit it before the deadline.
Let’s finalize with a few tips:
If you are an independent freelancer and own your business as a sole proprietor, it might be tricky to fill in forms in the right way. There are questions arising at every step. It is also important where you are located and which country is stated on your profile at UpWork.
Nowadays, freelancing businesses and startups is still a fresh thing to identify. But any form can be adjusted for your needs.
This mini tutorial will help you to complete all necessary IRS forms fast and easily. Stay tuned!