Form 1040

Highlights about what to look out for when preparing this year's Form 1040.

Calendar of important IRS deadlines throughout the year.

The alternative minimum tax, or AMT, is a second tax system parallel to the regular income tax. The alternative minimum tax adjusts or eliminates certain tax deductions or credits. Your tax may be higher under the alternative minimum tax rules if your income is over the AMT exemption amount.

You can prepare your taxes and electronically file your return for free using one of the IRS Free File websites.

Choosing the right tax software can be tricky. Read objective reviews of various tax preparation software programs to find the right software for you.

Find tax forms to prepare your personal income taxes. Links to the most common tax forms are gathered here on one page.

Download IRS Form 1040EZ in the Adobe Acrobat format.

Download the official IRS instructions for Form 1040 in the Adobe Acrobat format.

Download the official IRS tax guide, Publication 17, Your Federal Income Tax, in the Adobe Acrobat format.

Preparing your taxes can be taxing – not to mention exhausting! Fortunately, there's some tricks to making tax time a little less frustrating. Get ready to prepare your taxes with these tips.

Choose only one filing status, depending on your situation. Generally, your filing status depends on your marital status as of the last day of the year.

You may claim a personal exemption for yourself and for your dependents. You cannot claim an exemption for yourself if someone else can claim you as a dependent. You can claim an exemption for each dependent listed on your tax return. You are entitled to claim a person as a dependent if you meet five critical tests.

How to report various types of income on your Form 1040.

How to calculate and claim various tax deductions known as "above-the-line" deductions or adjustments to income. These deductions directly reduce your income, and you don't need to itemize. Line-by-line instructions for Form 1040 lines 23 to 34.

Make the most of your tax deductions. Take the larger of your standard deduction or your itemized deductions. Tips for figuring your tax liability.

Claiming tax credits is an important step in reducing your taxes. Find out about the tax credits you may qualify for.

Other taxes you may owe include the self-employment tax, additional taxes on unreported tips, additional taxes on the early withdrawal of retirement funds, the advance earned income credit, and household employment taxes. Just like tax credits reward certain activities, additional taxes increase the cost of various activities. The most common additional taxes are for early withdrawal of retirement savings before age 59-1/2 and self-employment taxes for independent contractors and freelancers.

How to report various tax payments on your Form 1040 lines 63 through 70.

How to figure your tax refund or balance due on Form 1040 lines 71 through 74. Plus tips on getting your refund safely and quickly, or how to pay off your tax bill quickly over a few months.

After you finished calculating your 2004 taxes, use these easy-to-follow steps to finish your tax return.

How to fill out your 1040 line 7 for wage income.

How to fill out your 1040 line 8 for interest income.

How to fill out Form 1040 line 9, dividend income. Reporting ordinary and qualified dividends.

How to fill out Form 1040 line 10, taxable refunds. Reporting last year's state tax refund on this year's return, and how to calculate the taxable amount.

How to fill out Form 1040 line 11, alimony received. Reporting alimony.

How to fill out your Form 1040 line 12, business income. Reporting your net profit or loss from self-employment.

How to fill out your 1040 line 14, ordinary gains. Figuring and reporting your ordinary gains and ordinary losses from the sale of business property.

How to fill out Form 1040 line 15, IRA distributions. Figuring and reporting non-taxable and taxable Individual Retirement Account distributions, withdrawals, and rollovers.

How to fill out your Form 1040 line 16, pension and annuity income. Figuring and reporting your non-taxable and taxable pensions.

How to fill out your Form 1040 line 17 to report various passive income amounts. Reporting rental income, royalties, and pass-through income from partnerships, S-Corporations, and trusts.

How to fill out your Form 1040 line 18, farm income. Reporting your net profit or net loss from farming activities.

How to fill out your Form 1040 line 19, unemployment income. Reporting your unemployment compensation.

How to fill out your Form 1040 line 20, Social Security benefits. Reporting your non-taxable and taxable Social Security income.

How to fill out your Form 1040 line 21, other income. Reporting various income items such as prizes, awards, gambling winnings, jury duty fees, and other income.

How to calculate your self-employment tax on Schedule SE using the short method or long method.

Instructions for preparing Form 4137 and Form 1040 Line 58. Plus strategies for protecting yourself against erroneous allocated tips, and what to expect from the IRS when you have allocated tips.

If you withdraw money from a traditional individual retirement account (IRA), 401(k), 403(b), or other qualified retirement plan before you turn age 59 1/2, you may be subject to an early distribution penalty of 10%. There are exceptions. Here's what you need to know about the early distribution tax.

Advance Earned Income Credit Payments are payments of part of your Earned Income Tax Credit received through your paycheck. The total of your advance is shown on your W-2 wage statement in box 9. Look at your W-2 statement, box 9. If there are any amounts, you must report them on Form 1040 Line 60.

If you employ someone to work in your home as a domestic servant, you may be required to pay various household employment taxes. This is the so-called "nanny tax." Basically, you are an employer, and you are required to pay Social Security, Medicare, and Unemployment taxes just like any other employer. You calculate your employment taxes on Schedule H, which is attached to your Form 1040.