- 1). Complete your personal information on Form 1040. This includes your contact information, social security number, filing status and exemptions. Your filing status indicates whether you are married, single or widowed with a dependent. Your exemptions indicate how many dependents you have. This includes yourself, if no one else can claim you as a dependent, and may include your spouse.
- 2). Complete the income section of Form 1040. Employers must provide W-2 forms to employees by January 31st for the previous tax year. A person is considered an employee if the employer withholds income tax, social security or Medicare tax and the employer has authority over how the employee conducts his job.
Independent contractors will get a 1099 form rather than a W-2 form. Independent contractors provide results for a company or employer, but the employer does not have authority over how the contractor conducts his job. Independent contractors also do not have taxes withheld by the employer. - 3). Complete additional forms if you have additional sources of income. A Schedule C is used to report business income and losses. A Schedule D reports capital gains and losses and a Schedule E reports gains and losses from real estate, partnerships and S Corporations.
- 4). Complete the adjusted gross income section which reports deductions such as student loan interest deductions and health savings account deductions.
- 5). Complete the tax sections of Form 1040. If you are itemizing deductions rather than claiming a standard deduction, complete Schedule A. After completing these sections, you will know the total amount of taxes you owe based on your taxable income.
- 6). Subtract your tax credits from your total tax in the payments section. This may include the Earned Income Credit (EIC) and first-time home buyer credit.
If the final amount in the payments section is more than the total tax due, you will receive a refund. Fill in your bank account information if you want the money deposited directly to your account or leave that section blank and a check will be sent to you.
If the final amount in the payments section is less than the total tax due, you owe money. Taxes may be paid by check, money order, online or by phone. If you do not pay by April 15th, you may owe a penalty for late payment. - 7). Sign your tax return and attach the W-2 form to your tax return. Include all other schedules with your 1040 and your payment if necessary and submit your return to the IRS.
You may file your taxes electronically at irs.gov or mail your form into your regional IRS location.
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