Of the 3 major tax forms, Form 1040 is the most complex. However, it offers many tax breaks that aren’t available if you file a simpler form (Form 1040EZ or Form 1040A). Don’t use a simpler form just to avoid completing this one. You should take advantage of all the tax breaks you’re entitled to. This form allows you to report all types of income, expenses, and credits.
If you receive any of these types of income, you must file Form 1040:
Self-employment income
Tips that you didn’t report to your employer
Income that you receive as a partner in a partnership, as a shareholder in an S corporation, or as a beneficiary of an estate or trust
Insurance policy dividends that total more than the premiums you paid
Interest that you receive or pay on securities transferred between interest payment dates
Distributions from a foreign trust
You also must file Form 1040 if any of these situations apply to you:
You qualify for the foreign earned income exclusion. For details, see Foreign Earned Income Exclusion.
You have a financial account in a foreign country, such as a bank account or securities account, that totals more than $10,000 at any time during the year. For details, see Foreign Bank and Financial Accounts.
You have an Alternative Minimum Tax adjustment on stock that you acquired from the exercise of an incentive stock option.
You owe excise tax on insider stock compensation from an expatriated corporation.
You’re reporting an original issue discount (OID) amount that doesn’t match the amount shown on Form 1099-OID. For details, see IRS Publication 1212: List of Original Issue Discount Instruments.
You owe household employment taxes. For details, see the Schedule H instructions.
You’re eligible for the health coverage tax credit. For details, see the Form 8885 instructions.
You’re claiming the adoption credit or you received employer-provided adoption benefits. For details, see Adoption Expenses.
You’re a debtor in a Chapter 11 bankruptcy case filed after October 16, 2005.
For more information, see IRS Publication 525: Taxable and Nontaxable Income.