Form 1040 – The IRS is Looking for You
The U.S tax authorities work in a manner that is uniquely different than parallel authorities in other countries around the world – they require tax returns not only from residents who live within the United States borders but also from any U.S citizen or green-card holder who lives in fact abroad.
Therefore, they are also obligated to file Form 1040 every year, also known as a U.S. Individual Income Tax Return, giving details of their income in the past tax year.
What is the income threshold for filing Form 1040?
The obligation to file Form 1040 is affected by three variables: The applicant’s marital status, his age at the end of the tax year, and his cumulative annual income level.
Following are those obligated to file the form as of 2024:
| Marital Status | Cumulative annual income over | Age at end of tax year |
| Single | 14,600 $ | Less than 65 |
| Single | 16,550 $ | over 65 |
| Married and filing together | 29,200 $ | Both spouses are younger than 65 |
| Married and filing together | 30,750$ | One of the spouses is over 65 |
| Married and filing together | 32,300 $ | Both spouses are over 65 |
| Head of household | 21,900 $ | Less than 65 |
| Head of household | 23,850 $ | over 65 |
| Widower with dependent child (for two years after being widowed) | 29,200 $ | Less than 65 |
| Widower with dependent child (for two years after being widowed) | 30,750 $ | over 65 |
| Sole proprietor Osek Patur or Osek Murshe | 400 $ | Any age |
* If there is any passive income such as: rent, interest and/or capital gains, please contact our offices
What does Form 1040 include?
The form is divided into two sections:
A. The first section is a report of the U.S citizen’s or green card holder’s total income.
It includes details of income from work, a business, rent, royalties, pension, social security and so forth.
B. The second section details separate entities for tax purposes held by the applicant, such as full or shared ownership of a foreign company residing outside the United States borders.
When is the filing due date for Form 1040?
This form must be filed by April 15th for the previous fiscal year, unless the due date falls on a Saturday, Sunday, or legal holiday, the due date is moved to the next business day.
United States citizens living abroad are given an automatic two-month extension, meaning June 15th, as long as they attach an affidavit regarding their place of residence.
In certain cases and under certain terms, one can file a request and receive up to 6 more months extension, which means the absolute latest date to file the form is December 15th.
Why is it recommended to use the services of a U.S CPA?[
A U.S CPA has all the professional information and tools required to file Form 1040 in the most efficient, accurate and cost-effective manner for the taxpayer.
The CPA can obtain, under certain circumstances, tax credits and tax reliefs that result in significant savings.
For example, you could receive credit for foreign taxes that you paid, or for your expenses in favor of your children and dependents.
These savings can amount to a few thousand dollars a year.
At the same time, the CPA could save you the unpleasantness of getting into deep waters with the U.S tax authorities.
The IRS is known for its strictness, and imposes penalties for late or inaccurate filings.
For example, the IRS imposes a 5% penalty for every month beyond the filing due date or any part thereof, a penalty that could reach up to 25% of the total tax debt.
In addition, a taxpayer whose filings include details that are incorrect, may be imposed with a penalty of 20% of his debt to the IRS.
In more severe cases, sanctions such as revoking the taxpayer’s U.S passport and even prosecution may be imposed as well.
The bottom line is that a U.S CPA could easily notify you of any errors and delays in filing form 1040 (Form 1040 example), as well as help you obtain useful tax credits that may alleviate your financial burden.
