A 1040 tax return is a form used by the Internal Revenue Service (IRS) for individuals to report their annual income and taxes owed. It is the standard form used for personal federal income tax returns in the United States. It includes information such as wages and salaries, interest and dividends, capital gains and losses, and various deductions and credits. The form is divided into several sections, including:
- Filing status and personal information
- Income, such as wages and salaries, interest, and dividends
- Adjustments to income, such as student loan interest and self-employed health insurance
- Deductions and credits, such as state and local taxes, charitable donations and mortgage interest.
The 1040 tax return is used to determine an individual’s tax liability and the amount of any refund or balance due.
This is a supplementary post to: First-Time Homebuyer’s Guide to Mortgage Approval