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Understanding the Individuals IRS Forms

Understanding the Individual’s IRS Forms: A Comprehensive Guide

The Internal Revenue Service (IRS) of the United States government issues various forms for different purposes. Individuals who pay taxes or have financial dealings with government agencies must fill these forms with accurate information and submit them on time. These forms are an essential part of the tax system and help the government collect accurate revenue data for analysis.

Every individual has unique circumstances when it comes to taxes, and it is essential to understand the different types of forms and which ones apply to you. In this article, we will explore the most common forms individuals have to deal with and provide a detailed and comprehensive guide on their use, requirements, and deadlines.

Form 1040 – The Basic Tax Return Form

Form 1040, also known as the U.S. Individual Income Tax Return, is the most commonly used form by taxpayers and is often referred to as the “”basic”” tax return form. It is used to report personal income, such as salaries, wages, tips, interest, and dividends, to the government for the purpose of computing their federal income tax.

The form has several sections that cover different aspects of an individual’s financial situation, including income, deductions, credits, and taxes. To fill out the form, taxpayers must have a record of all their sources of income and expenses from the previous year. This means keeping accurate records of all bank statements, pay stubs, and receipts.

The IRS updates Form 1040 frequently, and one of the most significant changes made to the form in recent years was the Tax Cuts and Jobs Act (TCJA), which was signed into law by President Trump in 2017. The TCJA lowered tax rates and increased the standard deduction, affecting how taxpayers report income and claim deductions.

Here are the key sections of Form 1040:

Income:

In this section, taxpayers report their sources of income for the year, including wages, salaries, tips, interest, dividends, refunds, and gains or losses from investments.

Deductions:

Most taxpayers can choose to either take a standard deduction or itemize their deductions. The standard deduction is a fixed dollar amount that reduces the amount of taxable income, while itemizing deductions allows taxpayers to claim deductions for specific expenses such as medical expenses, charitable donations, and mortgage interest.

Credits:

Credits are a direct reduction of the taxes owed and include the Child Tax Credit, Earned Income Credit, and the American Opportunity Tax Credit.

Taxes:

In this section, taxpayers calculate their total tax liability for the year based on the income and deductions reported. They also indicate how much they have already paid in taxes through withholdings from their paycheck or estimated payments throughout the year.

Form 1040 is due on April 15th of each year, the same day as the tax filing deadline. It’s available for electronic filing through multiple tax filing software services or as a printable PDF form that can be mailed to the IRS.

Form 1040-EZ and Form 1040-A – Simple Tax Returns

Form 1040-EZ and Form 1040-A are two simplified versions of Form 1040 that are designed for taxpayers with less complex financial situations. These forms are no longer available to use, as the IRS has renamed the forms and created slightly different replacement options for each one.

If you used to file with a 1040-EZ, your new form is one of the following:

Form 1040 SR

Form 1040-SR is designed for seniors aged 65 and older. It has been available since 2019 and serves as a replacement for Form 1040-EZ. This form has simplified language and larger print, making it easier for seniors to understand and fill out.

Form 1040 EZ (now “”Field by mail””)

At the time of writing, Form 1040 EZ has become unavailable for electronic filing. However, there is an option to download the form directly from the IRS website and mail it to them. It is essential to note that only a few taxpayers should use Form 1040-EZ. Those who have less than $100,000 in taxable income, no dependents, only income from wages, salaries, tips, taxable scholarships, or fellowship grants, and who do not itemize deductions are the only ones who can file Form 1040-EZ.

Form 1040-NR – For Non-Resident Aliens

Form 1040-NR is used by non-resident aliens who have income from U.S.-related sources. These sources may include wages earned from a U.S. employer, rental income from a U.S. property, or dividends from U.S. companies. Non-resident aliens are typically individuals who do not have legal permanent residence in the United States but do have a U.S. work visa or are otherwise required to pay U.S. taxes.

Form 1040-NR is required to be filed by non-resident aliens who earn income from the U.S. and do not have a Social Security number unless they are eligible for an ITIN (Individual Taxpayer Identification Number).

Form W-2 – Wage and Tax Statement

Employers are required to provide eligible employees with a Form W-2, Wage, and Tax Statement, at the end of each year. This form summarizes an employee’s earnings from that employer for the year and the amount of taxes withheld from their paycheck.

Form W-2 includes information about an employee’s compensation, such as wages, salary, and tips, as well as the amounts of federal, state, and local taxes withheld.

Employees must receive a Form W-2 from their employer no later than January 31 of the following year. Once they have received their Form W-2, they must use the information to fill out their tax return.

Form 1099 – Miscellaneous Income

Form 1099 is a series of forms that cover various types of miscellaneous income, including interest, dividends, and non-employee compensation. If a taxpayer earns income from a source that is not their employer, they may receive a Form 1099 from that source.

For example, if a person receives dividends from a stock investment, they will receive a Form 1099-DIV from the brokerage firm that held the investment. If someone does freelance work for a company, they may receive a 1099-MISC form indicating the amount paid to them.

Each 1099 form has a unique type that identifies the source of the income. For example, 1099-MISC is used for non-employee compensation, while 1099-INT is used for interest income.

Form 1099 must be submitted to the recipient and the IRS by January 31st of the following year. The IRS uses a of the form to ensure that taxpayers are reporting all the income they have received throughout the year.

Form 1098 – Mortgage Interest Statement

Form 1098, Mortgage Interest Statement, is used by lenders to report mortgage interest paid by a homeowner during the year. Homeowners can use this form to claim a deduction for the mortgage interest they paid on their federal income tax return.

In general, taxpayers who paid more than $600 in mortgage interest throughout the year will receive a Form 1098 from their lender. It’s important to note that the deduction for mortgage interest is subject to limits and can only be claimed by homeowners who itemize their deductions instead of taking the standard deduction.

Form 8962 – Premium Tax Credit (PTC)

The Premium Tax Credit, also known as the PTC, is a refundable tax credit designed to help low and middle-income individuals and families purchase health insurance through the Health Insurance Marketplace.

Form 8962 is used to calculate the PTC amount and the amount of the credit that can be claimed on the tax return for the year. Taxpayers must provide verification of their income, including the incomes of all individuals in their household, to determine eligibility for the credit.

The amount of the PTC is based on income and household size, and the credit is refundable, which means that eligible taxpayers can receive a refund even if they have no tax liability.

Final Thoughts

The above forms are not an exhaustive list of the IRS forms that individuals may have to deal with, but they are the most common and important ones to be aware of. Understanding each form’s requirements, deadlines, and purposes can help taxpayers avoid making mistakes on their tax returns and reduce the likelihood of an audit or other issues with the IRS.

It is essential to keep in mind that the IRS frequently updates its forms and tax laws, so it is important to stay current with these changes and seek professional guidance if needed. The IRS website offers downloadable forms, instructions, and other helpful resources for anyone filling out their tax returns.


IRS forms are filled out by individual taxpayers, businesses, government entities, and charities to report income and calculate taxes owed to the federal government. The IRS forms are the necessary documents used by the Internal Revenue Service to levy federal taxes.

Each of the above listed groups of taxpayers requires completion of varying forms. The alternate forms exist to organize the levying process; all types of landowners, employees, enterprises, and organizations must pay taxes to the federal government to fund public projects and pay off the national debt. For instance the 1040, is the necessary starting point and most well-known IRS form for the individual taxpayer.

The Form 1040 is the IRS form that documents an individuals Federal income tax return. The form 1040 was first published for use in 1913, 1914, and 1915 to raise revenue for the United States federal government. After successfully generating sufficient funding through the levying of the personal income tax, the form 1040 became an annual staple in 1916.

Depending on the individuals situation and complexity there are various forms of the form 1040. For example, individuals who do not invest in the stock market (no capital gain or loss) or incur zero itemized deductions, can use a simplified IRS form known as the Form 1040A (short form) or the Form 1040EZ (easy form.)

Income tax returns and other IRS forms for the individual taxpayer are due by April 15th of the subsequent fiscal year. Excluding attachments or add-ons, the standardized Form 1040 consists of two full pages. The first page of the IRS form requires information about the individual tax payer, his/her dependents, adjustments to income, and income items. The second page is used to calculate allowable deductions, credits, tax owed given the income, and implements funds previously withheld from wages or payments made towards a tax debt.

The form 1040 contains 11 attachments, known as schedules, which vary in necessity based on the taxpayer’s situation. Listed below are the IRS forms attached to the Form 1040, their purpose, and the specific tax levied.

Schedule A-Used to itemize allowable deductions made against income. Itemized deductions are eligible expenses that taxpayers report on their IRS forms to decrease their taxable income. After computing the adjusted gross income, taxpayers will review a lost of allowable deductions, appropriately itemize them, and then subtract the itemized deductions from their AGI amount. Once the calculations have been made the individuals taxable income amount is finalized.

Examples of allowable itemized deductions include:Medical expenses that exceed 7.5% of the taxpayer’s adjusted gross income, premiums for medical insurance, necessary travel expenses, payments for prescription drugs, charitable contributions, state property taxes (property and income), and investment interest. To save time and dependent on situation, taxpayers may choose to take a standard deduction, which is between, $5,150 and $14,300.

Schedule B-IRS form that calculates interest or divided income. Schedule B is required only if the amount received from dividends or interest exceed $1,500 during the tax year. Dividends refer to corporate profits “kicked-back” quarterly to investors of corporations.

Schedule C-IRS form that lists all income and expenses related to self-employment. Depending on ease of situation, a streamlined form (C-EZ) is available for sole proprietors.

Schedule D-Used to file capital gains and losses incurred during the taxable year. Schedule D is used to calculate the taxable amount given the special rates applied to capital gains. Capital gains are profits which result from investments into an asset, such as real estate, stocks, bonds, or mutual funds.

Schedule E-Used to report income and expenses emerging from the rental of royalties or real property. Pass-through entities (partnerships, trusts, estates) are also reported on this IRS form.

Schedule EIC-IRS form which documents an individuals Earned Income Tax Credit. Designed to encourage low-income workers and offset the levying burden of payroll taxes, the EIC offers tax credits to individuals who receive a low annual income while disabled, raising a family, furthering an education, or, sharing a residence.

Schedule F-IRS form used to report expenses and income related to farming.

Schedule H-Used to document taxes owed to due employment of household aid.

Schedule J-IRS form that calculates average farm income over a period of several years.

Schedule M-IRS forms applied in 2009 and 2010, used to claim the $400 “Making Work pay” tax credit.

Schedule R-Used to calculate tax credits for the elderly or disabled.