IRS Instruction 1040 – IRS Forms, Instructions, Pubs 2026

IRS Instruction 1040 – IRS Forms, Instructions, Pubs 2026 – Filing your U.S. individual income tax return can feel overwhelming, but understanding the IRS Form 1040 instructions makes the process smoother. For tax year 2025, which you’ll file in 2026, the IRS has updated its guidelines for Form 1040 and Form 1040-SR (designed for seniors born before January 2, 1961). This comprehensive article breaks down the key elements, including what’s new, filing requirements, and how to navigate credits and deductions. We’ll draw from official IRS sources to ensure accuracy and provide practical advice to optimize your return.

Whether you’re a first-time filer, self-employed, or claiming dependents, this guide covers everything you need to know about IRS Instruction 1040. Remember, for personalized advice, consult a tax professional or use IRS tools like the Interactive Tax Assistant on IRS.gov.

What’s New in the 2025 IRS Form 1040 Instructions

The IRS regularly updates its instructions to reflect tax law changes, and 2025 brings several notable adjustments under legislation like the One Big Beautiful Bill Act (P.L. 119-21, enacted July 4, 2025). Here’s a rundown of the major updates:

  • Increased Standard Deductions: For single filers or married filing separately: $15,750. Married filing jointly or qualifying surviving spouse: $31,500. Head of household: $23,625.
  • New Deductions via Schedule 1-A: No tax on qualified tips (up to $25,000, phased out above $150,000 AGI for single/$300,000 joint). No tax on overtime pay (up to $12,500 single/$25,000 joint, same phaseout). Deduction for qualified personal vehicle loan interest (up to $10,000, phased out above $100,000 single/$200,000 joint). Enhanced deduction for seniors (up to $6,000 single/$12,000 joint, phased out above $75,000 single/$150,000 joint).
  • Child Tax Credit Enhancements: Permanent increase to $2,200 per qualifying child under 17, with $1,700 refundable as the Additional Child Tax Credit (ACTC).
  • State and Local Tax (SALT) Deduction Limit: Raised to $40,000 ($20,000 if married filing separately), with a floor of $10,000 ($5,000 if married filing separately).
  • Catch-Up Contributions: Higher limits for ages 60-63: up to $11,250 for certain deferred compensation plans.
  • Digital Assets Reporting: Brokers now use Form 1099-DA for sales; you must answer the digital asset question on Form 1040.
  • Form 1099-K Threshold: Increased to $20,000 and 200 transactions for reporting third-party payments.
  • Other Changes: Governmental paid family leave contributions are fully includable in income but deductible as state/local taxes if itemizing. Refunds for Earned Income Credit (EIC) and ACTC can’t be issued before mid-February 2026.

For the full list of changes, check the “What’s New” section in the official instructions.

Who Needs to File Form 1040 or 1040-SR?

Not everyone has to file, but you must if your gross income meets certain thresholds or if you owe special taxes. Use these charts from the IRS instructions to determine your requirement.

Filing Thresholds for Most People (Chart A)

Filing Status Under 65 65 or Older
Single $15,750 $17,750
Married Filing Jointly $31,500 (both under 65) $33,100 (one 65+) / $34,700 (both 65+)
Married Filing Separately $5 $5
Head of Household $23,625 $25,625
Qualifying Surviving Spouse $31,500 $33,100

For Dependents (Chart B)

  • Single dependents: File if unearned income > $1,350 (or $3,350 if 65+/blind), earned > $15,750 (or $17,750 if 65+/blind), or gross income exceeds specific calculations.
  • Married dependents: Similar thresholds, adjusted if spouse itemizes.

Other Situations Requiring Filing (Chart C)

  • You owe Alternative Minimum Tax (AMT), self-employment tax (net earnings ≥ $400), or household employment taxes.
  • You received advance premium tax credit (APTC) and must reconcile via Form 8962.
  • You had distributions from HSAs, MSAs, or Section 965 inclusions.
  • Even if below thresholds, file to claim refunds, EIC, or other credits.

U.S. citizens, residents, and certain nonresidents must file. If deceased, mark the “Deceased” box and attach Form 1310 for refunds.

Choosing Your Filing Status

Your status affects your standard deduction, tax rates, and eligibility for credits. Options include:

  • Single: Unmarried or legally separated.
  • Married Filing Jointly: Married at year-end; shares liability.
  • Married Filing Separately: Separate returns; limits some credits.
  • Head of Household: Unmarried, paying >50% of home costs for a qualifying person.
  • Qualifying Surviving Spouse: Recent widow(er) with dependent child.

Check if your main home was in the U.S. for more than half of 2025 to qualify for certain benefits like EIC.

Claiming Dependents and Credits

List dependents on Form 1040, including name, SSN/ITIN, and relationship. Qualifying children (under 19 or 24 if student) or relatives must meet support, residency, and income tests. Valid SSNs are required for the Child Tax Credit ($2,200 per child) and EIC.

  • Credit for Other Dependents: For those not qualifying for CTC.
  • Form 8862: Required if prior credits were denied (non-math error).

Reporting Income on Form 1040

Include all taxable income on lines 1-9, using Schedules if needed:

  • Wages, tips, and salaries (Line 1).
  • Interest and dividends (Lines 2-3; Schedule B if over $1,500).
  • IRA, pensions, and Social Security (Lines 4-6; worksheets for taxability).
  • Capital gains (Line 7; Form 8949/Schedule D).
  • Additional via Schedule 1: Business income, unemployment, alimony (pre-2019 agreements), digital assets.

Exclusions: PPP loan forgiveness, combat pay (elect for EIC).

Deductions and Adjustments to Income

Reduce your taxable income with adjustments (Schedule 1) like IRA contributions, student loan interest, and self-employed health insurance. Choose standard deduction or itemize on Schedule A (e.g., medical expenses, SALT up to limit, mortgage interest). New Schedule 1-A covers tips, overtime, car loans, and senior deductions.

Tax Credits and Payments

Credits lower your tax bill dollar-for-dollar. Key ones:

  • Earned Income Credit (EIC): For low-to-moderate income; max based on children (e.g., $7,830 for 3+).
  • Premium Tax Credit: Reconcile on Form 8962.
  • Education credits (Form 8863), adoption (Form 8839, up to $5,000 refundable).

Payments include withholding (Line 25), estimated taxes (Line 26), and refundable credits (Line 27).

Refunds, Owe Amounts, and How to File

  • Due Date: April 15, 2026; extend with Form 4868 (pay any owed by original due date).
  • E-File: Fastest for refunds; use IRS Free File if AGI ≤ $79,000.
  • Mail: Addresses vary by state and payment status (see instructions).
  • Sign and Assemble: Include schedules in sequence; attach W-2s, 1099s if withheld.
  • Direct Deposit: Up to three accounts; no paper checks starting October 2025.

If you owe, pay via IRS.gov/Payments to avoid penalties.

Download the Official IRS Instructions

For the complete details, download the PDF of the 2025 Instructions for Form 1040 (and Form 1040-SR) directly from the IRS: https://www.irs.gov/pub/irs-pdf/i1040gi.pdf. This 123-page document includes worksheets, tax tables, and schedules.

Final Tips for a Smooth Tax Season

Stay organized with records like W-2s, 1099s, and receipts. Use IRS.gov for forms, calculators, and updates. If you’re eligible for credits like EIC or CTC, file even if you don’t owe taxes—you could get a refund. For complex situations (e.g., self-employment or foreign income), consider software or a CPA.

This guide is based on the latest IRS publications as of February 2026. Always verify with official sources, as tax laws can change. Happy filing!