If you’re filing income tax as an independent contractor or freelancer in the United States, it’s time to get closely acquainted with Form 1040. Who should file it? How do you file it? Here’s everything you need to know.
Form 1040 is how individuals file a federal income tax return with the IRS. It’s used to report your gross income—the money you made over the past year—and how much of that income is taxable after tax credits and deductions. It calculates the amount of tax you owe or the refund you receive.
This form can handle multiple sources of income and more complicated tax situations that an independent contractor or freelancer might face.
If you’re a sole proprietor, you’ll include Schedule C with your Form 1040 to report income or loss from your business.
Who needs to file Form 1040?
Most people in Woodbridge Township need to file Form 1040, whether they are independent contractors, freelancers, work for someone else as an employee, or live off income from investments.
However, if you have net earnings of at least $400 from self-employment, you must file a tax return. That means most independent contractors and freelancers have to file Form 1040, even if they don’t meet the gross income thresholds shown above.
For more advice on who needs to file, check out Chart A, B, and C in the Instructions for Form 1040.
What about 1040EZ and 1040A?
Before 2019, there were shorter versions of Form 1040 for filers with simpler returns. These were Form 1040EZ and 1040A, but they no longer exist. The IRS now requires most taxpayers to use Form 1040. However, starting with the 2019 tax year, taxpayers age 65 and up may be able to file using the new Form 1040-SR.
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Tax Filing in Woodbridge Township, NJ
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