Filing Form 1040
01.The Main Form
All individual tax filings use Form 1040. On this form, you report your total income, apply discounts (deductions), calculate your tax liability based on brackets, subtract taxes already paid, and determine if you get a refund or owe money.
02.Standard vs. Itemized Deductions
Before calculating tax, you can subtract a set discount from your income. Most taxpayers use the Standard Deduction (a flat discount set by the government). If you have high mortgage interest payments or large charitable donations, you might choose to Itemize (list each deduction individually) to get a larger discount.
03.Deadlines and Penalties
Filing late or failing to pay triggers interest and penalties. Even if you cannot afford to pay your tax bill, always file your return on time to avoid the heavy 'Failure to File' penalty, and set up a payment plan with the IRS.