Understanding 1040 Tax Form
Have the 1040 tax form in front of you when trying to
understand how the 1040 tax form works. Below is each section of the 1040 tax form.
Your tax is figured on the basis of your income and the expenses you incur during the tax year.
A tax year is an annual accounting period used for reporting income and expenses. For most people, the tax year is
the calendar year starting on January 1st and ending in December 31st.
Based on the previous tax filing, the IRS often sends out preprinted labels to taxpayers. If you
have a label sent by the IRS, then just put the label in the 1040 tax form where it says 'Label Here'. You don't
need a label and won't be sent one if you are filing electronically. However due to many circumstances, if a
taxpayer does not receive a preprinted label from the IRS, he or she needs to enter his or her (as well as spouse's
social security number
The names and social security numbers must match the information on each person's file at the
Social Security Administration.
So, if a taxpayer has any name mismatch issue, at least the name
and SSN on his or her tax form must match his or her social security card information.
The filing status you enter on your 1040 tax return form is very important. Different tax filing
statuses will be discussed later. Your tax filing status usually depends on whether you are married or considered
unmarried on the last day of the tax year. The IRS uses the tax filing status to determine (among others):
if a taxpayer must file a tax return,
amount of his or her standard deduction
his or her tax rate
his or her eligibility for certain tax deductions or tax credits