What is the Difference Between IRS Form 1040 & 1040-SR?

Filling out tax forms can be confusing. With various documents and reports to complete, determining which is which can sometimes be difficult. This is especially true for Forms 1040 and Form 1040-SR. 

The Form 1040 is the comprehensive form most taxpayers use to file annual income tax returns, claim tax deductions, and calculate their potential tax refund for the year. 

In recent years, the Form 1040 has gone through significant changes. It now comes in several variations, including the Form 1040-SR. But what makes the original different from its new counterpart?

You’ve come to the right place to learn the difference between these two tax forms. This blog will discuss the difference between Forms 1040 and Form 1040-SR. We’ll also explore the other reports you must submit alongside these forms. Discover what documents you must prepare for this coming tax season. 

Form 1040: The Taxpayer Staple

The Form 1040, also known as the US Individual Income Tax Return, is the tax form most people use to file their taxes. It’s the new standard document provided by the IRS following the discontinuation of Forms 1040EZ and 1040A. 

The form is divided into sections where you must report your income and deductions to calculate the amount of tax you must pay or the tax refund you may receive.

Depending on which income threshold you belong to, there are other documents that you have to submit alongside your Form 1040, such as:

• Schedule 1: This form reports common additional income sources or adjustments to your income. Some items commonly reported on a Schedule 1 form include alimony, unemployment compensation, business income, and other similar items. 
• Schedule 2: The Schedule 2 form consists of two parts: one for reporting alternative minimum tax and one for reporting items like self-employment taxes, Medicare tax, and other tax-favored accounts. 
• Schedule 3: This form is for reporting additional credits and payments.
• Schedule A: All itemized deductions, like medical and dental expenses, must be reported in this form. 
• Schedule B: Any interest or dividend income you receive greater than $1,500 must be reported in the Schedule B form. 
• Schedule C: Independent contractors, sole proprietors, and single-member LLCs use the Schedule C form to report profits and losses from their business. 
• Schedule D: This form is used for reporting any capital gains or losses you get from investments. 
• Schedule E: Income or losses from pass-through entities will be reported using this form. 
• Schedule F: Farmers use the Schedule F form to report their income and expenses from farming. 
• Schedule H: Taxpayers with household workers must use this form to report their employee’s withholding income. 
• Schedule J: Farmers and fishermen who calculate their income tax by averaging their taxes from the three previous years use this form for their tax filings.
• Schedule R: This form is used to claim senior or disability tax credits.
• Schedule SE: Business owners or independent contractors who made a profit of at least $400 must use this form to determine their self-employment tax. 
• 8812: This form is for claiming the Child Tax Credit and Credit for Other Dependents. 

It’s also worth noting that there are three other variations of Form 1040: Form 1040-NR, Form 1040-X, and Form 1040 SR.

Form 1040-NR is for non-resident or foreign taxpayers and is several pages longer than the usual 1040 form. Meanwhile, Form 1040-X is for those who want to amend their tax returns. Lastly, the Form 1040-SR is the latest variant of the document.  

Form 1040-SR: A New Variation

Form 1040-SR is the newest variation of the original 1040. This new iteration comes in a larger print, making it easier for older taxpayers to read and fill out the document. 

The creation of Form 1040-SR was mandated by the Bipartisan Budget Act of 2018 and was first put into use in 2019.

Who Can Use The Form 1040-SR?

Since the Form 1040-SR was designed for older taxpayers, only those aged 65 and above can use this form. Married couples who want to file a joint return can also use this form even if only one meets the criteria above. 

What is The Difference Between Form 1040 & Form 1040-SR

Aside from the larger print, there’s not a lot of difference between Forms 1040 and 1040-SR. The latter was created to mirror Form 1040, which means they use the same attached schedules and the same items like:

• Wages, salaries, tips, taxable scholarships and fellowship grants
• Tax-exempt and taxable interest
• Qualified and ordinary dividends
• IRA distributions and taxable amounts
• Pensions, annuities, and taxable amounts
• Social Security benefits and taxable amounts
• Total capital gains or losses
• Total standard or itemized deductions
• Taxable income

However, Form 1040-SR did remove the income limitation typically found in the previous types of Form 1040. There are no limits to the amount of ordinary income, dividends, capital gains, and other forms of taxable income you can report. 

How to Fill Out Your 1040 Form

Here are the basic items you’ll need to get started with your 1040 Form:

• Social security numbers
• Statement of wages earned (e.g., your W-2 and 1099 forms)
• Statement of interest or Form 1099-DIV for dividends received from banks or brokerages. 
• Proof of tax credits or deductions.
• A copy of your past tax return
• Bank account number and routing number

If you still have trouble completing your form, you can consult a tax professional from NCH.

File Your Forms Today

Taxes can be tricky, but the great news is that you don’t have to do it alone. NCH’s tax experts are here to help you fill out and file your Form 1040. 

NCH prides itself on providing personalized solutions tailored to the needs and goals of our clients. Whether you’re a first-time taxpayer or a seasoned one, we’re here to provide you with the expertise you need to face the tax season confidently. 

Our tax experts will assist you in completing the forms, reducing your chances of making errors that could cause delays or even trigger audits. 

Say goodbye to a stressful tax season with NCH. To learn more about our services, visit our website here or call us at 1-800-508-1729.

Disclaimer: The above material has been prepared for informational purposes only, containing opinions of the provider, and is not intended to provide, and should not be relied on for, tax, legal, or accounting advice. Please consider consulting tax, legal, and accounting advisors before engaging in any transaction.