Q:

What information needs to be included in a Form 1040?

A:

Quick Answer

Information that needs to be included on a Form 1040 includes adjusted gross income, adjustments and deductions from the adjusted gross income and exemptions, according to TurboTax. The form is used to determine how much money a taxpayer owes the IRS or how much of a refund the person can expect.

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Full Answer

When listing adjusted gross income on Form 1040, the taxpayer should include tips, salary, wages, interest, capital gains and any other financial sources that can be considered income, notes TurboTax. If it's not considered to be tax exempt, any and all types of income are legally required to be listed somewhere on the Form 1040.

Deductions and exemptions reduce the total amount a taxpayer owes the IRS for a single tax year, according to TurboTax. Examples of deductions include excess medical expenses, mortgage interest and unreimbursed business expenses. A taxpayer has a choice between either a standard deduction or itemized deductions. Which deduction to choose is dependent on the amount of taxable income a person has with each type of deduction.

Examples of adjustments that can be listed on Form 1040 include alimony payments, self-employment tax payments and student loan interest payments, notes TurboTax. The number of deductions and adjustments a taxpayer can claim and make is limited by the total adjusted gross income.

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