Filing Your 1040 Income Tax Return

To file income tax in the United States, you will need to use “Form 1040” – the standard income tax return worksheet from the IRS.

Below is a sample 1040 to try to fill out on your own for practice. This is the scenario for this exercise – try to complete the income tax return based on this scenario:

  • Your name is Alex Smith, from Springfield, USA. All of your contact information is pre-filled, so no need to re-enter it.
  • You have a regular employment job, which sent you a W-2 last year that accounts for most of your income. You can find a button to view your W-2 form below.
  • You also have a savings account – your bank sent you a Form 1099-INT showing the interest earned on your savings account. You can find a button to view your 1099-INT below.
  • You are going to file your taxes as a single adult, and nobody can claim you as a dependent.
  • Next to most fields you can find a “?”, giving you more information about what this means and how you should enter it.
  • You have no other special income, expenses, or forms/schedules besides your W-2 and 1099 (so you will skip a lot of the fields).

Good luck – hopefully you’ll get a tax return, and not need to pay extra!

20XX
OMB No. 1545-0074
IRS Use Only—Do not write or staple in this space
For the year Jan. 1–Dec. 31, 20XX
Presidential Election Campaign
Check here if you, or your spouse if filing jointly, want $3 to go to this fund. Checking a box below will not change your tax or refund.
Filing Status

Check only one box

Digital Assets
At any time during 2023, did you: (a) receive (as a reward, award, or payment for property or services); or (b) sell, exchange, or otherwise dispose of a digital asset (or a financial interest in a digital asset)? (See instructions.)
Standard Deduction
Someone can claim:
Income

See Your W-2

See Your 1099-INT

See Standard Deduction Info

1a
Total amount from Form(s) W-2, box 1 (see instructions)
1b
Household employee wages not reported on Form(s) W-2
c
Tip income not reported on line 1a (see instructions)
d
Medicaid waiver payments not reported on Form(s) W-2 (see instructions)
e
Taxable dependent care benefits from Form 2441, line 26
f
Employer-provided adoption benefits from Form 8839, line 29
g
Wages from Form 8919, line 6
h
Other earned income (see instructions)
i
Nontaxable combat pay election (see instructions)
z
Add lines 1a through 1h
2a
Tax-exempt interest
b
Taxable interest
3a
Qualified dividends
b
Ordinary dividends
4a
IRA distributions
b
Taxable amount
5a
Pensions and annuities
b
Taxable amount
6a
Social security benefits
b
Taxable amount
7
Capital gain or (loss). Attach Schedule D if required.
8
Additional income from Schedule 1, line 10
9
Add lines 1z, 2b, 3b, 4b, 5b, 6b, 7, and 8. This is your total income
10
Adjustments to income from Schedule 1, line 26
11
Subtract line 10 from line 9. This is your adjusted gross income
12
Standard deduction or itemized deductions (from Schedule A)
13
Qualified business income deduction from Form 8995 or Form 8995-A
14
Add lines 12 and 13
15
Subtract line 14 from line 11. If zero or less, enter -0-. This is your taxable income
Taxes and Credits

See Taxes Worksheet

16
Tax (see instructions)
17
Amount from Schedule 2, line 3
18
Add lines 16 and 17
19
Child tax credit or credit for other dependents from Schedule 8812
20
Amount from Schedule 3, line 8
21
Add lines 19 and 20
22
Subtract line 21 from line 18. If zero or less, enter -0-
23
Other taxes, including self-employment tax, from Schedule 2, line 21
24
Add lines 22 and 23. This is your total tax
Payments
25
Federal income tax withheld from:
a
Form(s) W-2
b
Form(s) 1099
c
Other forms (see instructions)
d
Add lines 25a through 25c
26
20XX estimated tax payments and amount applied from 20XW return
27
Earned income credit (EIC)
28
Additional child tax credit from Schedule 8812
29
American opportunity credit from Form 8863, line 8
30
Reserved for future use
31
Amount from Schedule 3, line 15
32
Add lines 27, 28, 29, and 31. These are your total other payments and refundable credits
33
Add lines 25d, 26, and 32. These are your total payments
Refund
34
If line 33 is more than line 24, subtract line 24 from line 33. This is the amount you overpaid
35
Amount of line 34 you want refunded to you
36
Amount of line 34 you want applied to your 20XY estimated tax
Amount You Owe
37
Subtract line 33 from line 24. This is the amount you owe
38
Estimated tax penalty

Your W-2

Your W-2

Your W-2

Standard Deduction for—

  • Single or Married filing separately, $14,600
  • Married filing jointly or Qualifying Surviving Spouse, $29,200
  • Head of Household, $21,900

Your Tax Table

Your total tax is based on your tax bracket – the more you earn, the higher tax rate you will pay. But calculating taxes based on marginal rates can be confusing for some people – so when filing taxes, the IRS provides tax “tables”, showing the tax owed for small increments of income. The published “tax tables” are over a dozen pages long, so we just included the part actually need to see based on your income below. Important Note: These tax tables are based on the 2023 tax year – the tax tables change every year.

There’s a problem

Correct

Filing Your Income Taxes

To file income tax in the United States, you will need to use “Form 1040” – the standard income tax return worksheet from the IRS.

This exercise will have you fill out your taxes, with all the information you need to succeed.

See Instructions

Instructions – Page 1

Your name is Alex Smith, from Springfield, USA. All of your contact information is pre-filled, so no need to re-enter it.

You are going to file your taxes as a single adult, and nobody can claim you as a dependent.

Next

Instructions – Page 2

You have a regular employment job, which sent you a W-2 last year that accounts for most of your income. You can find a button to view your W-2 form below.

You also have a savings account – your bank sent you a Form 1099-INT showing the interest earned on your savings account. You can find a button to view your 1099-INT below.

You have not recieved any other “Forms”, and have no other special income.

Next

Instructions – Last Page

Fill out the Form 1040 below with the information provided.

Next to most fields you can find a “?”, giving you more information about what this means and how you should enter it.

Tax Tip: “Forms” are sent to you by mail (almost always by February, with taxes due in April). “Schedules” are other tax forms that you need to fill out before completing the 1040, which detail other special circumstances. In this scenario, no “schedules” will apply to you, but we do explain what they are.

Notice: This lesson is a sample from the Income and Taxes unit of the PersonalFinanceLab Curriculum Library. For more lessons, and access to our interactive Budgeting or Stock Games, request more info for your school!