📅 2026 Tax Filing (Tax Year: 2026) — Quick Reference

• Filing Deadline: April 15, 2027
• Tax Form: 1040 [1040-SR (for eligible seniors) or 1040-NR (for nonresident aliens)]
• Extension Deadline: October 15, 2027, Form 4868 (for 6-month extension), Taxes owed are still due April 15, 2027.
• Traditional/Roth IRA & HSA Contributions deadline: April 15, 2027
• Form Availability: December 2026–January 2027
  • Draft forms typically appear in late fall; final forms and instructions are expected around December 2026–January 2027.
• Key Takeaway: File by April 15, 2027, or request an extension by that date. An extension gives you more time to file, not more time to pay.
• Form W-2G: Certain Gambling Winnings
• Form 1099-R: Distributions From Retirement Plans, Pensions, Insurance, etc.
• Form 1099-B: Proceeds From Broker and Barter Exchange Transactions
• Form 1099-INT: Interest Income
• Form 1099-NEC: Nonemployee Compensation
• Form 1099-K: Payment Card and Third-Party Network Transactions
• Form 1099-OID: Original Issue Discount

---

• Schedule 1: Additional Income and Adjustments to Income
• Schedule 2: Additional Taxes
• Schedule 3: Additional Credits and Payments
• Schedule 4: Additional Payments, Credits, and Withholdings
• Schedule 5: Other Payments and Refundable Credits
• Schedule 6: Foreign Address and Third-Party Designee

---

• Schedule A: Itemized Deductions
• Schedule B: Interest and Ordinary Dividends
• Schedule C: Profit or Loss From Business
• Schedule C-EZ: Net Profit From Business (Simplified)
• Schedule D: Capital Gains and Losses
• Schedule E: Supplemental Income and Loss
• Schedule EIC: Earned Income Credit
• Schedule F: Profit or Loss From Farming
• Schedule R: Retirement Savings Contributions Credit (Saver's Credit)
• Schedule SE: Self-Employment Tax
• Schedule H: Household Employment Taxes
• Schedule J: Income Averaging for Farmers and Fishermen
• Schedule K-1: Shareholder's Share of Income, Deductions, Credits, etc.
• Schedule L: Legal Expenses and Alimony You Paid
• Schedule M: Additional Medicare Tax
• Schedule N: Tax on Income from Puerto Rico
• Schedule O: Estate and Gift Tax
• Schedule P: Alternative Minimum Tax
• Schedule Q: Residential Rental Property Income and Expenses
• Schedule R: Education Credits

[ Total / Gross Income ]
- Earned Income: Wages, salaries, tips, bonuses, and self-employment income.
- Unearned Income: Interest, dividends, capital gains from selling stocks/crypto, rental property income, taxable pensions, and gambling winnings.
- Other Income: Unemployment compensation, prize money, or royalties.
             │
             ▼  Minus "Above-the-Line" Deductions Schedule 1 Part II (IRA/HSA, Student Loan Interest(up to $2,500), Educator expenses (for teachers), Half of the self-employment tax paid, Self-employed health insurance premiums)
  [ Adjusted Gross Income (AGI) ]
             │
             ▼  Minus Standard or Itemized Deduction (and QBI if eligible) Schedule A
  [ Taxable Income ]
             │
             ▼  Apply Tax Brackets
  [ Total Tax Bill ]
             │
             ▼  Minus Tax Credits (e.g., Child Tax Credit)
  [ Final Amount Owed / Refund ]

CREDITS VS DEBITS

1. The Core Rule: Memory Trick

In TXMOD, SUMUP, or IMF/BMF account modules:

• MINUS ($-$ / Negative) = CREDIT = FAVORABLE TO TAXPAYER(Money coming IN to pay off the tax, or money owed back to the taxpayer as a refund).
• PLUS ($+$ / Positive) = DEBIT = TAXPAYER OWES(A liability, charge, penalty, or interest billed to the taxpayer).

💡 Memory Trick: Think of a Minus Sign ($-$) as "Minusing (Subtracting) the taxpayer's bill."

• Every minus sign reduces what the taxpayer owes or creates an overpayment/refund.
• A Plus Sign ($+$) is "Adding to the taxpayer's bill."

---

2. Why Does IDRS Work This Way?

In standard bookkeeping, a tax account starts at $$0.00$.

1. Tax Assessed (TC 150) = DEBIT ($+$): When a taxpayer files a return, the tax owed creates a positive balance (a debit/charge).
2. Payments & Credits = CREDIT ($-$): Withholding, payments, and credits enter the account to reduce that positive balance toward zero.

Example Scenario:

• TC 150 (Tax Assessed): $2,000.00 (Positive = Debited/Owed)
• TC 806 (W-2 Withholding): -$2,500.00 (Negative = Credited/Paid)
• Net Account Balance: -$500.00

👉 Because the final balance is negative (-$500.00), the taxpayer has overpaid by $500, which will trigger a refund (TC 846).

---

3. Quick Reference Table for IDRS Command Codes

Transaction / Action	Sign in IDRS	Transaction Code Examples	What it Means
Tax Assessment	$+$ (Positive)	TC 150 (Return Filed), TC 290 (Additional Tax)	Increases tax liability.
Penalties & Interest	$+$ (Positive)	TC 160 (Failure to Pay), TC 310 (Interest)	Charges added to the account.
Withholding & Payments	$-$ (Negative)	TC 806 (Withholding), TC 610/670 (Payments)	Money paid into the account.
Tax Credits	$-$ (Negative)	TC 766 (Credit Allowance), TC 768 (EITC)	Reduces tax liability or creates a refund.
Refund Issued	$+$ (Positive)	TC 846 (Refund)	Zeroes out an overpayment by sending cash back.

---

4. How to Read TC 846 (Refunds)

A common point of confusion in TXMOD is TC 846 (Refund Issued):

• While accumulating credits (TC 806, TC 766) shows as negative ($-$), when the system actually issues the refund (TC 846), it posts as a positive ($+$) debit entry to balance the account back to $$0.00$.

---

Need Further Clarification?

If you run into a specific Transaction Code (TC) or a specific TXMOD display line that looks strange, let me know which TC or screen layout you are reviewing!

IRS Form 1040 (2025) — Complete, Easy-to-Understand Guide

This guide follows your attached 2025 IRS Form 1040, U.S. Individual Income Tax Return, page by page, covering the identification fields, checkboxes, every numbered line and lettered subline, calculations, signatures, and paid-preparer section.

f1040.pdf

The goal is to help you understand what each field means, why it exists, what information goes there, and how the lines connect to one another.

One important distinction: Form 1040 is the main summary of your federal individual income tax return. Many lines get their amounts from supporting forms and schedules, such as Form W-2, Schedule 1, Schedule A, Schedule 2, and Schedule 3. You do not necessarily fill out every line; you complete the ones that apply to your situation.

This guide explains the form and its normal calculations. Special eligibility rules, exceptions, and supporting schedules can matter, so use the official instructions when deciding how to report an actual tax return.

Page 1 — Identification, filing status, dependents, and income

104012OC04 - Form 1040 Official U.S. Individual Income Tax Return (Page 1 & 2) (Color) - Greatland.com

Page 1 at a glance

• Who is filing?
• What is their filing status?
• Who are their dependents?
• Where did their income come from?
• What is their total income and adjusted gross income (AGI)?

1. Tax year and IRS-use section

Field	Meaning
Form 1040 — 2025	The individual federal income tax return for tax year 2025.
Department of the Treasury — IRS	Identifies the government agency responsible for administering the return.
OMB No. 1545-0074	The form's government paperwork control number. It is not your personal tax ID.
IRS Use Only — Do not write or staple in this space	Reserved for IRS processing. Leave it alone.
Calendar-year dates	Normally, the return covers January 1 through December 31, 2025.
Other tax year	Used by eligible taxpayers with a fiscal tax year. Enter the beginning and ending dates if applicable.
Filed pursuant to section 301.9100-2	A special filing indicator for a return filed under the specified IRS relief provision. It is not a routine checkbox for everyone.
Combat zone	Indicates an applicable combat-zone filing situation. Special tax deadlines or rules may apply.
Deceased — date fields	Used to identify a taxpayer or spouse who died and to enter the relevant date, when applicable.
Other	An additional status indicator; use it only when the IRS instructions say it applies.

Remember: These fields establish which tax year is being reported and identify certain special filing circumstances. Do not mark special boxes just because they sound relevant; check the instructions for the specific situation.

2. Taxpayer and spouse information

Field	What it means
Your first name and middle initial	Your legal first name and middle initial, as applicable.
Last name	Your legal last name.
Your Social Security number (SSN)	Your taxpayer identification number.
Spouse's first name and middle initial	Enter your spouse's name when required for the filing situation.
Spouse's last name	Your spouse's last name.
Spouse's SSN	Your spouse's taxpayer identification number, when required.
Home address	Your mailing address, including street number and street name.
Apartment number	Unit, apartment, or suite number, if applicable.
City, town, or post office	Your city or town.
State	Your U.S. state, when applicable.
ZIP code	Your postal ZIP code.
Foreign country name	Enter the country if you have a foreign address.
Foreign province/state/county	The relevant foreign region, if applicable.
Foreign postal code	The postal code for the foreign address.

Main home in the United States for more than half of 2025

This checkbox asks whether your main home—and your spouse's main home if filing jointly—was in the United States for more than half the year.

Why it matters: It can affect eligibility for certain tax benefits and special rules. It does not, by itself, establish that you qualify for every credit.

Presidential Election Campaign

There are separate checkboxes for You and Spouse.

• Checking your box directs $3 to the Presidential Election Campaign Fund.
• Your spouse may independently check their box on a joint return.
• This choice does not increase your tax or reduce your refund.

It is a voluntary designation, not an additional tax payment you owe.

3. Filing status — choose the correct category

Your filing status affects your tax brackets, standard deduction, and eligibility for certain tax benefits. Check only one box.

Status	Simple explanation
Single	Generally, you are unmarried for federal tax purposes and do not qualify for another status.
Married filing jointly (MFJ)	Married spouses file one return together. Generally, both report their relevant income and deductions on the joint return.
Married filing separately (MFS)	Married spouses file separate returns. Special rules apply to deductions, credits, and community-property income where relevant. Enter your spouse's SSN and full name in the designated fields.
Head of household (HOH)	Generally requires being unmarried or considered unmarried under the tax rules, paying more than half the cost of keeping up a home, and having a qualifying person. Additional requirements apply.
Qualifying surviving spouse (QSS)	A special status potentially available to a surviving spouse for a limited period when the applicable requirements are met. It can provide tax treatment similar to married filing jointly.

Additional filing-status fields

Qualifying child's name for HOH or QSS

If the form asks for a child's name because the qualifying person is a child who is not your dependent, enter the child's name as instructed. This is a special situation, not a field every HOH filer must complete.

Nonresident alien or dual-status alien spouse treated as a U.S. resident

This box applies if you elect to treat a spouse who is a nonresident alien or dual-status alien as a U.S. resident for the entire tax year. Enter the spouse's name and attach the required statement when applicable.

This can affect which income must be reported and which filing statuses are available. Do not make this election casually; it can have significant tax consequences.

4. Digital Assets — Yes or No

The form asks whether, at any time during 2025, you:

• Received a digital asset as a reward, award, or payment for property or services; or
• Sold, exchanged, or otherwise disposed of a digital asset or a financial interest in one.

Examples may include cryptocurrency and certain other digital assets.

Answer	General meaning
Yes	At least one of the transactions described in the question occurred.
No	None of the described transactions occurred.

Important: Merely holding cryptocurrency is not, by itself, necessarily a reason to answer Yes. Buying digital assets with U.S. dollars and holding them without a reportable transaction is generally different from selling, exchanging, or receiving them as payment. Follow the specific wording and official instructions for the year.

A Yes answer does not automatically mean you owe tax. The underlying transaction determines its tax treatment and reporting requirements.

5. Dependents — Dependent 1 through Dependent 4

The form has space for four dependents. If you have more than four, follow the instructions for reporting additional dependents.

A dependent is generally a qualifying child or qualifying relative under IRS rules. Being financially helpful to someone or being related to them does not automatically make them your dependent.

Each dependent has several fields.

Field	Meaning
(1) First name	Dependent's first name.
(2) Last name	Dependent's last name.
(3) SSN	Dependent's Social Security number, or other identification as allowed under the instructions.
(4) Relationship	Relationship to you, such as son, daughter, parent, or another qualifying relationship.
(5a) Lived with you more than half of 2025	Indicates whether the dependent met the stated residence test. Exceptions can apply.
(5b) And in the U.S.	Indicates whether the applicable U.S. residence requirement was met. Eligibility rules vary by tax benefit and situation.
(6) Full-time student	Identifies a dependent who meets the applicable full-time student rules. This can matter for qualifying-child age tests.
(6) Permanently and totally disabled	Identifies a person who meets the applicable disability definition. Special age rules may apply to a qualifying child.
(7) Child tax credit	Indicates a dependent for whom the child tax credit may be available, subject to eligibility rules.
(7) Credit for other dependents	Indicates a dependent who may qualify for the credit for other dependents instead of the child tax credit.

Child tax credit vs. credit for other dependents

• Child tax credit: Generally concerns qualifying children who meet requirements such as age, relationship, residency, and identification.
• Credit for other dependents: May apply to certain qualifying older children or other dependents who do not qualify for the child tax credit.

The boxes identify the type of credit potentially available; they do not independently establish eligibility or determine the final credit amount.

Special spouse-separation checkbox below the dependent section

The form asks whether you filed as MFS or HOH and lived apart from your spouse for the last six months of 2025, or were legally separated under the specified state-law arrangement and did not share the same household at the end of 2025.

This checkbox can matter for specific child-related tax benefits and the rules for certain married taxpayers living apart. Follow the instructions carefully; simply living in separate rooms or having a difficult marriage is not enough to establish every requirement.

6. Income — Lines 1a through 11a

This section is one of the most important parts of Form 1040. It records income, totals it, subtracts certain adjustments, and calculates your adjusted gross income (AGI).

Line 1 — Wages and other earned income

Line	Field	What it means
1a	W-2 wages	Total wages, salaries, tips, and other compensation reported in Box 1 of your Form W-2.
1b	Household employee wages not reported on W-2	Certain wages paid to household workers that were not reported on a W-2. Special household employment rules apply.
1c	Tip income not reported on line 1a	Reportable tip income not already included in the W-2 wages on line 1a, following the instructions.
1d	Medicaid waiver payments not reported on W-2	Certain Medicaid waiver payments that are not included on a W-2. Special income-exclusion rules may apply.
1e	Taxable dependent care benefits	The taxable portion of employer-provided dependent care benefits, calculated on Form 2441.
1f	Employer-provided adoption benefits	Taxable adoption benefits provided by an employer, calculated on Form 8839.
1g	Wages from Form 8919	Wages calculated using Form 8919 for certain workers whose employment taxes were not properly handled.
1h	Other earned income	Other reportable earned income described in the instructions. Enter the type and amount.
1i	Nontaxable combat pay election	Nontaxable combat pay that you elect to include for certain tax-credit calculations. It is not added to the ordinary taxable wage total on line 1z.
1z	Total wages and other amounts from lines 1a–1h	Add lines 1a through 1h. Line 1i is not part of this sum.

Example: Suppose line 1a is $60,000 and line 1c is $500, with all other lines from 1b through 1h being zero. Line 1z would be $60,500.

Do not add an amount twice if it is already included in W-2 wages. Also, line 1z is not necessarily your total earned income for every tax purpose; the definition of earned income can differ across credits and other provisions.

Forms mentioned in the left margin

• W-2: Wage and tax statement from an employer.
• W-2G: Certain gambling winnings.
• 1099-R: Certain distributions from pensions, retirement plans, and similar arrangements.
• Schedule B: Used when required to report interest or ordinary dividends in more detail.

The form's left-margin instructions remind you which supporting documents may need to accompany the return.

Line 2 — Interest income

Line	Field	What it means
2a	Tax-exempt interest	Interest exempt from federal income tax, often reported on Form 1099-INT. It is generally not included in taxable income, but reporting it may still be required.
2b	Taxable interest	Interest that is subject to federal income tax, such as taxable bank interest or certain bond interest.

Example: You receive $200 of tax-exempt municipal bond interest and $800 of taxable bank interest. Generally, report $200 on line 2a and $800 on line 2b.

Tax-exempt interest is not the same as interest that has simply not been reported to the IRS.

Line 3 — Dividends

Line	Field	What it means
3a	Qualified dividends	The portion of dividends that qualifies for special tax rates, subject to applicable holding-period and other rules.
3b	Ordinary dividends	The total ordinary dividends to report, including qualified dividends.

Example: If you receive $1,000 in ordinary dividends, of which $700 qualifies for the special qualified-dividend rates, line 3b is $1,000 and line 3a is $700.

Do not add lines 3a and 3b together when calculating total income. The qualified amount is already included in ordinary dividends.

Child's dividends checkbox: The form provides checkboxes associated with lines 3a and 3b for reporting certain dividends included under the applicable child-income reporting rules. Follow the instructions for the relevant line and circumstances.

Line 4 — IRA distributions

Line	Field	What it means
4a	IRA distributions	The gross amount distributed from an individual retirement arrangement (IRA).
4b	Taxable amount	The part of those distributions that is taxable.

Example: You withdraw $10,000 from a traditional IRA, and the entire distribution is taxable. Line 4a is $10,000 and line 4b is $10,000.

If a distribution includes a nontaxable return of basis or another nontaxable component, line 4b may be lower than line 4a. Special rules and supporting forms can apply.

The form also includes indicators for certain distribution situations:

• Rollover: A distribution moved into another eligible retirement arrangement under the rollover rules.
• QCD: Qualified charitable distribution, subject to the eligibility and reporting rules.
• Other indicator: A separate code on the form for another specified IRA distribution situation.

Use the appropriate checkbox or indicator only when the instructions say it applies. A rollover or qualified charitable distribution is not automatically tax-free in every circumstance.

Line 5 — Pensions and annuities

Line	Field	What it means
5a	Pensions and annuities	The gross amount of pension or annuity distributions.
5b	Taxable amount	The part of those distributions included in taxable income.

For example, if a pension provider distributes $20,000 and the full amount is taxable, report $20,000 on both lines. If part of the payment represents a nontaxable recovery of investment, the taxable amount may be lower.

The form also has indicators for:

• Rollover: An eligible rollover transaction.
• PSO: Certain qualified public safety officer distributions subject to special rules.
• Other indicator: Another distribution classification specified in the form instructions.

Pension and annuity taxation depends on the type of plan, the source of the payment, and the taxpayer's circumstances.

Line 6 — Social Security benefits

Line	Field	What it means
6a	Social Security benefits	The total benefits reported for the year, generally based on the Social Security benefit statement.
6b	Taxable amount	The portion of those benefits that is taxable for federal income tax purposes.

Important: Social Security benefits are not automatically 100% taxable or automatically tax-free. The taxable portion depends on the applicable rules, including other income and filing circumstances.

The form also includes:

• 6c — Lump-sum election: Check this if you elect the special method for certain Social Security benefits received as a lump sum from an earlier year.
• 6d — Married filing separately while living apart: A checkbox for a taxpayer filing MFS who lived apart from their spouse for the entire year, when the stated conditions apply.

These checkboxes do not independently calculate the taxable amount; they flag special rules.

Line 7 — Capital gains or losses

Line	Field	What it means
7a	Capital gain or loss	The net reportable capital gain or loss, generally from selling investments or other capital assets.
7b	Schedule D not required	Check when the conditions for not filing Schedule D are met.
7b	Includes child's capital gain or loss	Check when the reported amount includes a child's capital gain or loss under the applicable reporting rules.

Examples of capital assets can include stocks, bonds, and certain other investments or property.

Example: You buy stock for $2,000 and later sell it for $2,700. Ignoring fees and other adjustments, you have a $700 gain. The actual amount reported depends on the applicable reporting rules and any other capital transactions.

If you sell multiple investments, gains and losses may offset one another under the capital-gains rules. A capital loss can have different treatment from a capital gain, so do not assume every loss can be deducted without limitation.

Line 8 — Additional income

Source: Schedule 1, line 10.

This line brings over additional income calculated on Schedule 1. Depending on your situation, it can include items such as:

• Business income or loss.
• Certain rental, royalty, partnership, S corporation, or trust income.
• Unemployment compensation.
• Certain other income listed on Schedule 1.

These are examples, not a complete list. Some types of income have their own supporting forms and reporting requirements.

If you have none of the additional income reported through Schedule 1, line 8 may be zero.

Line 9 — Total income

Add the amounts from:

• Line 1z — wages and other amounts included in that total.
• Line 2b — taxable interest.
• Line 3b — ordinary dividends.
• Line 4b — taxable IRA distributions.
• Line 5b — taxable pensions and annuities.
• Line 6b — taxable Social Security benefits.
• Line 7a — capital gain or loss.
• Line 8 — additional income.

The result is total income.

Notice what is excluded from this addition: line 2a tax-exempt interest, line 3a qualified dividends, and line 1i nontaxable combat pay are not separately added to line 9.

Line 10 — Adjustments to income

Source: Schedule 1, line 26.

This line reports eligible adjustments that reduce income before AGI is calculated. Depending on your circumstances, examples can include:

• Certain deductible contributions to traditional IRAs.
• Eligible student loan interest.
• Certain self-employed health insurance deductions.
• Certain deductible portions of self-employment tax.
• Other adjustments permitted by the applicable rules.

Not every taxpayer qualifies for these adjustments. Eligibility, income limits, documentation, and special rules vary.

Line 11a — Adjusted gross income (AGI)

Calculation:

\[ \text{AGI}=\text{Line 9}-\text{Line 10} \]

AGI is a key figure used throughout the tax return. It is often used to determine eligibility for deductions and credits, apply income limits, and calculate other tax items.

Example: If total income on line 9 is $70,000 and eligible adjustments on line 10 total $3,000, line 11a is $67,000.

Keep this distinction clear:

• Total income: Income included in the line 9 calculation.
• AGI: Total income minus eligible adjustments.
• Taxable income: A later calculation after deductions.

AGI is not the same as take-home pay, and it is not the final amount on which tax is calculated.

Page 2 — Tax, deductions, credits, payments, refund, and amount owed

Understanding your Individual Tax Return Form 1040 – Heard

Page 2 at a glance

• Calculate taxable income.
• Calculate tax and subtract credits.
• Add other taxes.
• Compare tax with payments and refundable credits.
• Determine your refund or amount owed.

7. Line 11b — Adjusted gross income carried forward

Line 11b repeats the adjusted gross income from line 11a on page 1.

It carries your AGI into the tax-and-credits calculation on page 2.

Example: If line 11a is $67,000, enter $67,000 on line 11b.

This is a transfer of the same figure, not a second adjustment.

8. Line 12 — Special deduction-related checkboxes

Line 12 contains several checkboxes that may affect the standard deduction or other tax calculations.

Line	Field	Meaning
12a	Someone can claim you as a dependent	Check if another taxpayer is entitled to claim you as a dependent under the applicable rules. This can affect your standard deduction.
12a	Someone can claim your spouse as a dependent	Check the spouse box when another taxpayer can claim your spouse as a dependent.
12b	Spouse itemizes on a separate return	Indicates that your spouse itemizes deductions on a separate return. This can affect whether you can take the standard deduction.
12c	You were a dual-status alien	Identifies a taxpayer who was both a nonresident alien and a resident alien during the tax year under the applicable rules. Special tax-return rules apply.
12d — You	Born before January 2, 1961	Identifies a taxpayer who meets the form's age-related condition for 2025.
12d — You	Are blind	Indicates that you meet the applicable blindness criteria.
12d — Spouse	Born before January 2, 1961	Identifies a spouse who meets the age-related condition.
12d — Spouse	Is blind	Indicates that your spouse meets the applicable blindness criteria.

The age threshold corresponds to being 65 or older by the end of 2025. For the form's specific checkbox, follow the exact date printed on the 2025 form.

Why do age and blindness matter? They may increase the standard deduction for eligible taxpayers. The actual deduction depends on filing status and the applicable rules.

9. Line 12e — Standard deduction or itemized deductions

This is where you enter your standard deduction or your eligible itemized deductions from Schedule A.

You generally choose between:

• Standard deduction: A fixed deduction based on filing status and applicable eligibility rules.
• Itemized deductions: The total of eligible deductions individually calculated on Schedule A.

For 2025, the form prints these standard deduction amounts:

Filing status	2025 standard deduction shown on the form
Single	$15,750
Married filing separately	$15,750
Married filing jointly	$31,500
Qualifying surviving spouse	$31,500
Head of household	$23,625

These are the basic amounts shown on your 2025 form, before any applicable additions or limitations.

Important: Your deduction may differ if you qualify for an additional amount due to age or blindness, or if special restrictions apply. A person who can be claimed as a dependent may also have a different standard-deduction calculation.

What are itemized deductions?

Depending on the rules and limits, Schedule A may include items such as:

• Certain state and local taxes.
• Eligible mortgage interest.
• Qualifying charitable contributions.
• Certain medical and dental expenses above the applicable threshold.
• Other eligible deductions permitted by the tax law.

Do not assume that every personal expense is deductible. The expenses must meet the relevant tax requirements.

10. Line 13 — Additional deductions

Line	Field	Meaning
13a	Qualified business income deduction	Deduction calculated on Form 8995 or Form 8995-A for eligible taxpayers with qualifying business income.
13b	Additional deductions from Schedule 1-A, line 38	Additional deductions carried from Schedule 1-A, when applicable.

Line 13a — Qualified business income deduction

This deduction may be available to eligible owners of qualifying businesses, including certain sole proprietors and owners of partnerships or S corporations.

It is subject to detailed rules, limitations, and calculations. Having a business does not automatically qualify all of its income for this deduction.

Line 13b — Schedule 1-A deductions

This line is especially important on the 2025 version of Form 1040. Schedule 1-A covers specified additional deductions introduced for 2025, subject to the rules and limitations for each deduction.

Examples of categories addressed by the 2025 Schedule 1-A include:

• Qualified tips.
• Qualified overtime compensation.
• Qualifying passenger vehicle loan interest.
• An additional deduction for certain eligible seniors.

These deductions have specific requirements, dollar limits, income phaseouts, and other restrictions. For example, not every tip or overtime payment automatically qualifies, and not every car loan qualifies.

Do not confuse line 13b with the standard deduction. The form adds line 13b separately from line 12e when calculating total deductions.

11. Line 14 — Total deductions

Calculation:

\[ \text{Line 14}=\text{Line 12e}+\text{Line 13a}+\text{Line 13b} \]

This adds the deductions reported on those three lines.

Example:

• Line 12e: $15,750.
• Line 13a: $0.
• Line 13b: $1,000.

Line 14 = $16,750.

The figures are illustrative; the actual deductions depend on your eligibility.

12. Line 15 — Taxable income

Calculation:

\[ \text{Line 15}=\text{Line 11b}-\text{Line 14} \]

If the result is zero or less, enter zero.

Taxable income is the amount used in the main income-tax calculation, subject to the applicable tax rules.

Example:

• AGI (line 11b): $67,000.
• Total deductions (line 14): $16,750.
• Taxable income (line 15): $50,250.

This does not mean you owe tax equal to $50,250. It is the income amount to which the applicable tax calculations are applied.

13. Line 16 — Tax

Line 16 is the calculated income tax on your taxable income, determined using the applicable tax tables, tax computation worksheets, or other required methods.

The result depends on your filing status, taxable income, and the type of income you have.

Example: If the applicable tax calculation gives you $5,600, line 16 would be $5,600.

The example is illustrative, not an estimate of tax for a particular taxpayer.

Special indicators on line 16

The form asks whether the tax includes amounts from:

• Form 8814: Certain income of a child that a parent elects to report on the parent's return.
• Form 4972: Tax on certain lump-sum distributions from qualified retirement plans.

These forms have special eligibility and calculation rules. Check the appropriate indicator only if it applies.

14. Lines 17–18 — Additional tax from Schedule 2 and combined tax

Line	Calculation or source	Meaning
17	Schedule 2, line 3	Additional tax carried over from the specified part of Schedule 2.
18	Line 16 + line 17	Combined amount before the credits subtracted on lines 19–21.

Line 17 is not a general place to enter every tax you might owe. It brings over a particular amount from Schedule 2, and the schedule's instructions determine what belongs there.

Line 18 combines that amount with the tax from line 16.

15. Lines 19–21 — Credits

Credits reduce tax differently from deductions.

A deduction generally reduces the income used to calculate tax. A credit generally reduces the tax amount itself, subject to the credit's rules.

Line	Field	Meaning
19	Child tax credit or credit for other dependents	Credit amount carried from Schedule 8812.
20	Schedule 3, line 8	Certain nonrefundable credits carried from Schedule 3.
21	Add lines 19 and 20	Total of the credits reported on lines 19 and 20.

Line 19 — Child tax credit and credit for other dependents

The amount comes from Schedule 8812. It depends on the qualifying child or dependent, applicable credit rules, and any relevant limitations.

Do not confuse this line with the additional child tax credit on line 28. Line 19 is the credit reported in this section; line 28 handles the separately calculated refundable portion, when available.

Line 20 — Other nonrefundable credits

Schedule 3 can include various credits, depending on eligibility. Examples may include certain foreign tax, education-related, and other qualifying credits.

A nonrefundable credit generally cannot reduce the relevant tax below zero. Some credits have refundable components or different limitations, so each credit's rules matter.

Line 21 — Total credits on lines 19 and 20

Add line 19 and line 20. This total is subtracted from line 18 on the next line.

16. Line 22 — Tax after these credits

Calculation:

\[ \text{Line 22}=\text{Line 18}-\text{Line 21} \]

If the result is zero or less, enter zero.

This is the tax remaining after subtracting the credits included in line 21.

Example: Line 18 is $5,600 and line 21 is $1,200. Line 22 is $4,400.

This is not yet necessarily your final total tax because additional taxes may be added on line 23.

17. Line 23 — Other taxes

Source: Schedule 2, line 21.

This line includes additional taxes that apply to your situation, such as certain self-employment taxes and other taxes reported through Schedule 2.

Examples may include:

• Self-employment tax.
• Certain additional taxes related to retirement accounts.
• Additional Medicare Tax, when applicable.
• Net Investment Income Tax, when applicable.
• Other taxes calculated under the applicable provisions.

These are examples, not a complete list. The applicable forms and schedules determine what you must report.

Important distinction: Income tax on line 16 and other taxes on line 23 are not the same thing. A taxpayer may have relatively little regular income tax but still owe certain other taxes.

18. Line 24 — Total tax

Calculation:

\[ \text{Line 24}=\text{Line 22}+\text{Line 23} \]

This is the total tax amount used in the final comparison with your payments and refundable credits.

Example:

• Line 22: $4,400.
• Line 23: $600.
• Line 24: $5,000.

You will compare this $5,000 with your withholding, estimated tax payments, and applicable refundable credits.

Payments and refundable credits — Lines 25–33

This section answers a different question from the tax calculation:

How much have you already paid toward your federal tax, and how much additional credit can be applied to your return?

Your payments can come from tax withheld from your paycheck, withholding from other payments, estimated tax payments, and certain refundable credits.

19. Line 25 — Federal income tax withheld

Line	Field	Meaning
25a	Withholding from Form W-2	Federal income tax withheld from your wages, as reported on your W-2 forms.
25b	Withholding from Form 1099	Federal income tax withheld from applicable 1099 payments.
25c	Withholding from other forms	Federal income tax withheld and reported on other forms specified in the instructions.
25d	Total withholding	Add lines 25a, 25b, and 25c.

Example: Your W-2 shows $4,000 of federal income tax withheld, and a 1099 shows $200 withheld.

• Line 25a: $4,000.
• Line 25b: $200.
• Line 25c: $0, assuming no other withholding.
• Line 25d: $4,200.

Important: Use federal income tax withholding, not Social Security tax or Medicare tax withheld from wages. Those are different payroll taxes.

20. Line 26 — Estimated tax payments

This line includes:

• Estimated federal income tax payments you made during 2025.
• Any eligible amount from your 2024 return that you elected to apply to your 2025 estimated taxes.

Estimated tax payments are commonly made by people who do not have enough tax withheld from wages, including some self-employed taxpayers.

Example: You paid $1,000 in estimated taxes during the year and applied another $500 from your 2024 refund to 2025. If both amounts qualify, line 26 is $1,500.

The form also asks for your former spouse's SSN if you made estimated tax payments with that former spouse in 2025. Complete this field when the instructions require it.

21. Line 27 — Earned Income Credit (EIC)

Line	Field	Meaning
27a	Earned income credit	The eligible EIC amount calculated under the applicable rules.
27b	Clergy filing Schedule SE	An indicator for the specified clergy situation involving Schedule SE.
27c	Do not want to claim EIC	Check if you do not want to claim the earned income credit.

The Earned Income Credit is designed to benefit eligible workers with low-to-moderate earned income. Eligibility depends on factors such as earned income, adjusted gross income, filing status, qualifying children, investment income, and other requirements.

A qualifying child is not required in every case, but the amount and eligibility rules differ.

Important: Being employed does not automatically qualify you for EIC. You must meet the applicable requirements.

If you qualify and choose to claim it, the EIC can be refundable, meaning it may contribute to your refund even when your regular income tax is zero.

22. Line 28 — Additional Child Tax Credit (ACTC)

This line reports the refundable additional child tax credit from Schedule 8812, when applicable.

The Child Tax Credit and Additional Child Tax Credit are related but not identical:

• The regular child tax credit is reported in the tax-and-credits section.
• The additional child tax credit is a potentially refundable portion, subject to eligibility and calculation rules.

The form also lets you check a box if you do not want to claim the ACTC.

A qualifying child, earned-income requirements, identification requirements, and other rules can affect eligibility. Having a child alone does not guarantee a credit.

23. Line 29 — American Opportunity Credit

Source: Form 8863, line 8.

This line reports the refundable portion of the American Opportunity Tax Credit for eligible education expenses and students.

The credit generally relates to qualifying higher education expenses during the first four years of postsecondary education, subject to requirements involving the student, educational institution, expenses, income, and other conditions.

Do not assume all tuition or education-related expenses qualify. Form 8863 determines the allowable amount.

24. Line 30 — Refundable adoption credit

Source: Form 8839, line 13.

This line reports the refundable adoption credit amount calculated on Form 8839, when applicable under the rules for the tax year.

Eligibility and the amount depend on qualifying adoption expenses and other applicable requirements.

25. Line 31 — Other refundable credits and payments

Source: Schedule 3, line 15.

This line carries the amount specified on Schedule 3. It can include certain additional payments or refundable credits allowed under the applicable rules.

Do not use line 31 as a general place to enter any credit you have heard about. The credit must qualify for this line under the relevant schedule and instructions.

26. Line 32 — Total other payments and refundable credits

Add:

• Line 27a — EIC.
• Line 28 — ACTC.
• Line 29 — American Opportunity Credit.
• Line 30 — Refundable adoption credit.
• Line 31 — Schedule 3 amount.

The result is your total other payments and refundable credits.

27. Line 33 — Total payments

Calculation:

\[ \text{Line 33}=\text{Line 25d}+\text{Line 26}+\text{Line 32} \]

This is the total amount of payments and refundable credits used in the refund-or-amount-owed calculation.

Example:

Component	Amount
Line 25d — Total withholding	$4,200
Line 26 — Estimated payments	$1,500
Line 32 — Other payments and refundable credits	$300
Line 33 — Total payments	$6,000

The amounts above are illustrative.

Refund or amount owed — Lines 34–38

This is the final financial calculation on Form 1040.

28. Line 34 — Overpayment

The form instructs you to subtract line 24 from line 33 if line 33 is greater than line 24.

In simple terms:

\[ \text{Overpayment}=\text{Total payments}-\text{Total tax} \]

This is the amount by which your payments exceed your total tax.

Example: Total payments are $6,000 and total tax is $5,000. Your overpayment is $1,000.

An overpayment does not necessarily mean all of it will be paid to you as a refund. You can elect to apply part of it to next year's estimated tax.

29. Line 35 — Refund

Field	Meaning
35a	Amount of the overpayment you want refunded to you.
35b	Bank routing number for direct deposit.
35c	Whether the account is checking or savings.
35d	Bank account number for direct deposit.

If you want the eligible overpayment paid to you, enter the amount on line 35a.

Direct deposit fields

• Routing number: Identifies your bank or financial institution for the transaction.
• Account type: Select checking or savings.
• Account number: Identifies your particular bank account.

Enter these carefully. Incorrect banking information can delay a refund or cause a payment to be misdirected.

Security reminder: Do not share your bank account number or SSN in a public post or untrusted message.

Form 8888 checkbox

Check the indicated box if you attach Form 8888 as instructed. This form supports certain refund-allocation arrangements, such as splitting a refund between eligible accounts or making other permitted allocations.

30. Line 36 — Apply overpayment to 2026 estimated tax

Instead of receiving all your overpayment as a refund, you can elect to apply some or all of it to your estimated federal income tax for 2026.

Example:

• Line 34 overpayment: $1,000.
• Line 35a refund requested: $700.
• Line 36 applied to 2026 estimated tax: $300.

The $1,000 overpayment is allocated between the refund and next year's estimated tax.

This is an election for the applicable estimated tax account, not an extra deduction.

31. Line 37 — Amount you owe

If line 33 is less than line 24, subtract line 33 from line 24.

\[ \text{Amount owed}=\text{Total tax}-\text{Total payments} \]

Example:

• Line 24 — Total tax: $5,000.
• Line 33 — Total payments: $4,200.
• Line 37 — Amount owed: $800.

You generally need to pay the amount owed by the applicable deadline to avoid potential interest and penalties. The form directs you to the IRS Payments website or the official instructions for payment options.

Important: A refund and an amount owed are normally alternative outcomes of this calculation. You should not calculate both as positive amounts for the same ordinary overpayment comparison.

32. Line 38 — Estimated tax penalty

This line is for an applicable estimated tax penalty.

A penalty may apply when you did not pay enough tax during the year through withholding and estimated payments, even if you pay the remaining balance when filing your return.

Whether a penalty applies depends on factors such as the amount and timing of payments, prior-year tax, current-year tax, and any applicable exceptions.

Do not assume that every taxpayer who owes money at filing must pay an estimated tax penalty. Likewise, owing no balance at filing does not necessarily prove that no underpayment penalty applies.

Third-party designee

This section asks whether you authorize another person to discuss your return with the IRS.

Field	Meaning
Yes	You authorize the specified designee to discuss the return with the IRS within the scope of this authorization.
No	You do not authorize a third-party designee through this section.
Designee's name	Name of the authorized person.
Phone number	Contact number for the designee.
Personal identification number (PIN)	The PIN you designate for the authorization, as directed by the instructions.

This authorization is limited. It is not the same as giving someone full power of attorney to represent you before the IRS.

If you want a tax professional to have broader authority to represent you, separate authorization procedures may be necessary.

Sign Here — Taxpayer and spouse signatures

The signature section contains a declaration under penalties of perjury. By signing, you declare that you have examined the return and accompanying schedules and statements and that, to the best of your knowledge and belief, they are true, correct, and complete.

Field	Meaning
Your signature	Your signature, confirming the declaration.
Date	Date you sign.
Your occupation	Your occupation, as requested on the form.
Your Identity Protection PIN	Enter your IRS-issued IP PIN if one was issued to you and the instructions require it.
Spouse's signature	Required for a joint return. Both spouses generally must sign.
Spouse's date	Date your spouse signs.
Spouse's occupation	Your spouse's occupation, as requested.
Spouse's Identity Protection PIN	Enter your spouse's IRS-issued IP PIN if applicable.
Phone number	A contact number for questions about the return.
Email address	An email address for contact, if provided.

Why the signature matters

Signing a tax return is a legal declaration. A preparer completing the return does not automatically remove the taxpayer's responsibility for reviewing and signing it.

For a joint return, both spouses generally must sign, and joint filing can create joint and several liability for the tax, subject to applicable relief provisions and exceptions.

Identity Protection PIN (IP PIN)

An IP PIN is an IRS-issued number intended to help protect against tax-related identity theft. It is different from your SSN, a bank PIN, or a self-created password.

Use the correct IP PIN for the relevant taxpayer and tax year as directed by the IRS.

Keep a copy for your records

The form explicitly reminds you to keep a copy of the return. Retain your return, supporting schedules, and relevant records according to applicable recordkeeping guidance.

Paid Preparer Use Only

This section is completed by the paid tax preparer when applicable.

Field	Meaning
Preparer's name	Name of the person who prepared the return.
Preparer's signature	The paid preparer's signature, when required.
Date	Date the preparer signs.
PTIN	Preparer Tax Identification Number.
Self-employed checkbox	Indicates whether the preparer is self-employed, as applicable.
Firm's name	Name of the tax preparation firm, if applicable.
Phone number	Firm's or preparer's contact number, as applicable.
Firm's address	Address of the preparation firm.
Firm's EIN	Employer Identification Number of the firm, when applicable.

The preparer section identifies who prepared the return and provides the required identification and contact information. It does not replace the taxpayer's own signature requirements.

The bottom of the form directs taxpayers to the official Form 1040 webpage for instructions and the latest information.

The most important calculations to memorize

These calculations connect the entire form. If you understand this table, you can follow the movement of figures from income to the final refund or balance due.

Form 1040 calculation flow

Step 1 · Income

Line 9 — Total income

Add the income amounts specified on lines 1z, 2b, 3b, 4b, 5b, 6b, 7a, and 8.

Step 2 · Adjustments

Line 11a / 11b — AGI

Total income minus adjustments to income on line 10.

Step 3 · Deductions

Line 15 — Taxable income

AGI minus the deductions totaled on line 14, with zero as the minimum.

Step 4 · Tax and credits

Line 24 — Total tax

Calculate tax, apply the relevant credits, and add other taxes.

Step 5 · Payments

Line 33 — Total payments

Add withholding, estimated payments, and the other payments and refundable credits.

Line 34 — Overpayment

Payments are greater than total tax.

Line 37 — Amount owed

Total tax is greater than payments.

Example: Follow one return from start to finish

Suppose a hypothetical taxpayer has these figures:

Calculation	Amount
Line 9 — Total income	$70,000
Line 10 — Adjustments	$3,000
Line 11b — AGI	$67,000
Line 14 — Total deductions	$16,750
Line 15 — Taxable income	$50,250
Line 16 — Calculated tax (illustrative)	$5,600
Line 17 — Additional tax carried from Schedule 2	$0
Line 18 — Tax before credits	$5,600
Line 21 — Credits	$1,200
Line 22 — Tax after credits	$4,400
Line 23 — Other taxes	$600
Line 24 — Total tax	$5,000
Line 25d — Withholding	$4,200
Line 26 — Estimated payments	$1,500
Line 32 — Other payments and refundable credits	$300
Line 33 — Total payments	$6,000
Line 34 — Overpayment	$1,000

In this example, the taxpayer has $1,000 more in payments than total tax. They could request a refund or elect to apply some of the overpayment to 2026 estimated tax.

The example demonstrates the arithmetic only. It is not a complete tax calculation or a determination that any particular deduction or credit is available.

Commonly confused terms

Term	Remember it this way
Total income — Line 9	Income included in the form's total-income calculation.
AGI — Line 11a/11b	Total income minus eligible adjustments.
Deductions — Line 14	Amounts that reduce AGI to taxable income.
Taxable income — Line 15	Income used in the main income-tax calculation after deductions.
Tax — Line 16	Calculated income tax before the subsequent credits and other-tax calculations.
Tax credits — Lines 19–21	Eligible credits subtracted in the tax calculation.
Total tax — Line 24	Tax after the specified credits, plus other taxes.
Withholding — Line 25	Federal income tax already withheld from payments.
Total payments — Line 33	Withholding, estimated payments, and other payments and refundable credits.
Refund — Line 35a	The portion of an overpayment you request to be refunded.
Amount owed — Line 37	The amount by which total tax exceeds total payments.

Final reminders

• Your attached document is the 2025 Form 1040, not a generic form for every tax year. Tax forms and tax rules can change from year to year.
• The printed standard deduction amounts are for 2025.
• Do not enter the same income twice just because it appears in more than one supporting document or category.
• Use the supporting schedules to calculate the amounts that flow into Form 1040. The main form is a summary, not a substitute for those calculations.
• A blank line does not always mean the same thing as zero; follow the instructions for the particular line.
• Keep supporting records and a copy of the completed return.
• For actual filing decisions, use the official IRS Form 1040 webpage and the instructions for the relevant tax year.

The big picture: Page 1 identifies the taxpayer and calculates income and AGI. Page 2 uses AGI to calculate taxable income, tax, credits, total tax, payments, and ultimately whether the taxpayer receives a refund or owes additional tax.