What is Form 1040 for tax refund 2020?

The form 1040 is the standard form from the Internal Revenue Service (IRS) for filing tax returns. It has a section to disclose the various sources of income which will determine whether the individual will receive a tax refund or not. In most cases, there is no use of Schedules, the standard 1040 form is enough. In 2018, IRS launched a newer version of form 1040. Individuals who fill the form by using tax software may not notice the change. The reason is a tax software automatically updates the forms.

Form 1040

Which Form You Need to Fill For Tax Refund 2020

If you are getting ready for the tax filing season, then knowing about tax refund 2020 is also very important. Today, in this blog, we will tell you about the form 1040, which is used for a tax refund. What it is, what are the various schedules in it and other relevant information? Now, let’s get started.

Who Can Fill out Form 1040?

The Question comes, who can fill out form 1040. Well, in general almost everyone has to fill it. Whether it is an employee, a freelancer or an independent contract.  Here is the list.

Your Filing Status                                     Your Age                                            Your Gross Income

Single                                                         Under 65                                              $12,200

                                                                   65 or older                                           $13,850

Married filing jointly        under 65 (both spouses)                            $24,400         

                                                          65 or older (both spouses)                         $27,000

Head of Household                                   under 65                                             $18,350

                                                                  65 or Older                                           $20,000

Married Filing Separately                           Any Age                                              $5

 

Qualifying Widower                                 under 65                                              $24,400

                                                                  65 or Older                                            $25,700

For those we are self-employed, they can file for tax return if their net income is at least $400. Now, we are going to tell you about the different schedules in form 1040. In a nutshell, here are they.

> Schedule A

> B: Schedule 

>  C: Schedule

>Schedule D

These are the four schedules. Now let’s see what purpose they serve for tax refund 2020.

Schedule – A

The first is used Schedule-A. It is used for itemizing deductions such as mortgage interest, property taxes, charity expenses, medical expense and state tax. It is used for reducing your tax bill. One of the most necessary IRS forms. 

> Charity Expenses                 > If any theft losses

>Medical Expenses                

>Home Mortgage Interest

Schedule – B

For the dividends, you have received over $1500 get to mention in this part of the form. The main keyword here is “Taxable”. The lower it is, the lower your tax bill will get.

Schedule -C

If you are a freelancer, an independent contractor or doing side gigs, then you have to fill schedule-C. You report about your profit and losses here. Here, you can deduct the expense too, such as office supplies, home office or advertising.

Schedule – D

If you had any capital gains or losses from trade stocks, bonds or other ways, you mention it here. If you are an investor, you had any profit or losses, it is said in schedule-D.

From where to get the form 1040 for tax refund 2020

Now, you know about the form 1040, but where you can get it.  The IRS website has a pdf file of it. You can download it and fill it. As we said above, if you are using tax software, it will have the form. The software will walkthrough you to it. Whichever way you prefer, you can use it.

How to fill form 1040

There are three ways of filling out form 1040. First is using tax software, which will do it automatically.  The second way is you can do it for yourself. The third way is, you can hire a professional tax preparer.

So, this was everything about the tax form 1040 for filing tax refund 2020. We are sure it will help you.