IRS Form 1040: U.S. Individual Income Tax Return for Tax Year 2025
File your 2025 federal income tax return online in 2026. New Schedule 1-A deductions for tips, overtime, car loan interest, and seniors — fill out securely and download instantly.
What is IRS Form 1040?
The foundation of every U.S. individual tax return
Form 1040 (U.S. Individual Income Tax Return) is the standard federal tax form used by individuals to report their annual income to the IRS and calculate their tax liability. Nearly every American taxpayer files some version of this form each year — it covers wages, investment income, self-employment earnings, retirement distributions, and all other sources of taxable income.
For Tax Year 2025, you must file Form 1040 by April 15, 2026. The 2025 version introduces major changes under the One Big Beautiful Bill Act (OBBBA), including an entirely new schedule — Schedule 1-A — that lets eligible taxpayers claim deductions for tips, overtime pay, car loan interest, and an enhanced deduction for seniors aged 65 and older.
What's New on the 2025 Form 1040
Key changes affecting your 2026 tax filing
New Schedule 1-A: Additional Deductions
The OBBBA introduces four brand-new "below-the-line" deductions reported on Schedule 1-A. These deductions reduce your taxable income even if you take the standard deduction — a significant benefit for millions of taxpayers.
No Tax on Tips: Up to $25,000
Workers in customarily tipped occupations can exclude up to $25,000 of voluntary tips from federal income tax. Subject to income phaseout starting at $150,000 MAGI ($300,000 joint).
No Tax on Overtime: Up to $12,500
Employees earning FLSA-qualifying overtime can deduct up to $12,500 ($25,000 joint) of overtime compensation. Only applies to federally required overtime under the Fair Labor Standards Act.
Car Loan Interest Deduction: Up to $10,000
Deduct interest on loans for new U.S.-assembled vehicles purchased after December 31, 2024. Maximum $10,000 per filer. Phaseout begins at $100,000 MAGI ($200,000 joint). Excludes used, leased, and business vehicles.
Enhanced Senior Deduction: Up to $6,000
Taxpayers aged 65 or older can claim an additional $6,000 deduction ($12,000 joint). Phaseout begins at $75,000 MAGI ($150,000 joint). This stacks on top of the existing additional standard deduction for seniors.
Other Notable Changes
Child Tax Credit: Increased to $2,200 per child (from $2,000). SALT Cap: Raised to $40,000 for joint filers (from $10,000). Standard Deduction: $15,750 single / $31,500 MFJ. Digital Assets: Expanded reporting requirements for cryptocurrency and NFTs.
2025 Standard Deduction & Tax Brackets
Federal income tax rates for Tax Year 2025
Standard Deduction
- Single: $15,750
- Married Filing Jointly: $31,500
- Head of Household: $23,625
- Married Filing Separately: $15,750
- 65+ Additional: $1,600 (single) / $1,300 (married)
Tax Brackets (Single)
- 10%: Up to $11,925
- 12%: $11,926 – $48,475
- 22%: $48,476 – $103,350
- 24%: $103,351 – $197,300
- 32%: $197,301 – $250,525
- 35%: $250,526 – $626,350
- 37%: Over $626,350
Tax Brackets (Married Filing Jointly)
- 10%: Up to $23,850
- 12%: $23,851 – $96,950
- 22%: $96,951 – $206,700
- 24%: $206,701 – $394,600
- 32%: $394,601 – $501,050
- 35%: $501,051 – $751,600
- 37%: Over $751,600
Key Tax Credits
- Child Tax Credit: $2,200 per child under 17
- Additional CTC (refundable): Up to $1,700
- Earned Income Credit (max): $7,830 (3+ children)
- American Opportunity Credit: Up to $2,500
- Lifetime Learning Credit: Up to $2,000
How to Fill Out Form 1040 for 2025
Walk through each section of your tax return
Personal Information & Filing Status
Enter your name, Social Security Number, and address. Choose your filing status — this determines your tax rates and standard deduction amount:
- Single — Unmarried or legally separated
- Married Filing Jointly (MFJ) — Married couples combining income (usually lowest tax)
- Married Filing Separately (MFS) — Married but filing individual returns
- Head of Household (HOH) — Unmarried with a qualifying dependent
- Qualifying Surviving Spouse (QSS) — Widowed within the past 2 years with a dependent child
Report All Income (Lines 1–9)
Gather your income documents and report each type on the designated line:
- Line 1a: Wages, salaries, and tips (from your W-2, Box 1)
- Lines 2a-2b: Interest income (from 1099-INT)
- Lines 3a-3b: Dividend income (from 1099-DIV)
- Lines 4a-4b: IRA distributions (from 1099-R)
- Lines 5a-5b: Pensions and annuities (from 1099-R)
- Line 6b: Social Security benefits (from SSA-1099)
- Line 7: Capital gains or losses (from Schedule D)
- Line 8: Other income from Schedule 1 (business, rental, alimony, etc.)
- Line 9: Total income — sum of all the above
Adjustments & Deductions (Lines 10–15)
Reduce your taxable income through above-the-line adjustments and your chosen deduction method:
- Line 10: Adjustments from Schedule 1 (educator expenses, student loan interest, IRA deductions, self-employment tax, HSA contributions)
- Line 11: Adjusted Gross Income (AGI) — Line 9 minus Line 10
- Line 12: Standard deduction OR itemized deductions (Schedule A)
- Line 13: Qualified business income deduction (Section 199A, if applicable)
- Line 14: NEW — Schedule 1-A deductions (tips, overtime, car loan interest, senior deduction)
- Line 15: Taxable income — your AGI minus all deductions
Tax, Credits & Other Taxes (Lines 16–24)
Calculate what you owe and reduce it with available credits:
- Line 16: Tax — from the tax table, Tax Computation Worksheet, or Schedule D
- Line 19: Child Tax Credit ($2,200 per qualifying child under 17) and other credits from Schedule 8812
- Line 21: Other taxes — self-employment tax, AMT, household employment tax (Schedule 2)
- Line 22: Credits from Schedule 3 — education, foreign tax, energy credits
- Line 24: Total tax — your bottom-line federal tax liability
Payments & Refund (Lines 25–37)
Determine whether you get a refund or owe additional tax:
- Line 25: Federal income tax withheld (from W-2, Box 2 and 1099s)
- Line 26: Estimated tax payments made during the year
- Line 27: Earned Income Credit (if eligible)
- Line 28: Additional Child Tax Credit (refundable portion)
- Line 33: Total payments — if greater than Line 24, you get a refund
- Line 34: Overpayment amount
- Lines 35a-35d: Direct deposit routing and account information (fastest refund method)
- Line 37: Amount you owe — pay by April 15 to avoid penalties
Schedule 1-A: The New OBBBA Deductions Explained
Four new deductions available for Tax Year 2025 — even with the standard deduction
Qualified Tips ($25,000 max)
- Covers voluntary cash and charged tips
- Must work in a customarily tipped occupation
- Reported via W-2 Box 12 Code TP
- MAGI phaseout: $150K single / $300K joint
- Must have a valid SSN and file jointly if married
Overtime Pay ($12,500 max)
- Only FLSA-qualifying overtime counts
- $12,500 per filer ($25,000 joint)
- Reported via W-2 Box 12 Code TT
- MAGI phaseout: $150K single / $300K joint
- Employer must be subject to FLSA overtime rules
Car Loan Interest ($10,000 max)
- New vehicles only — purchased after 12/31/2024
- Vehicle must be assembled in the United States
- Gross vehicle weight under 14,000 lbs
- MAGI phaseout: $100K single / $200K joint
- Excludes used, leased, and business-use vehicles
Senior Deduction ($6,000 max)
- Must be age 65 or older by end of 2025
- $6,000 per qualifying person ($12,000 joint)
- MAGI phaseout: $75K single / $150K joint
- Stacks with existing senior standard deduction bump
- No work requirement — applies to all qualifying seniors
Important: All Schedule 1-A deductions are available for tax years 2025–2028 only. They are subject to income-based phaseouts and require calculating your Modified Adjusted Gross Income (MAGI) on the schedule.
Form 1040 Deadlines for 2026
Important dates for Tax Year 2025
IRS Begins Accepting Returns
The IRS starts processing electronically-filed 2025 tax returns. File early for the fastest refund.
W-2 and 1099 Delivery Deadline
Employers and payers must furnish W-2s, 1099-NEC, and other income statements to recipients by this date.
Tax Return Filing Deadline
File Form 1040 and pay any tax owed by April 15, 2026. Request an extension with Form 4868 for extra time to file (but not to pay).
Extended Filing Deadline
If you filed Form 4868, your extended deadline to submit Form 1040 is October 15, 2026. Interest and penalties on unpaid taxes accrue from April 15.
Who Needs to File Form 1040?
Filing requirements for Tax Year 2025
You Must File If:
- Gross income exceeds $15,750 (single, under 65)
- Gross income exceeds $31,500 (MFJ, both under 65)
- Gross income exceeds $23,625 (head of household, under 65)
- Self-employment net earnings exceed $400
- You received Health Insurance Marketplace subsidies
- You owe special taxes (AMT, household employment, etc.)
You Should File Even If Not Required:
- Federal income tax was withheld (to get a refund)
- You qualify for Earned Income Credit
- You qualify for Additional Child Tax Credit
- You qualify for American Opportunity Credit
- You made estimated tax payments during the year
- You want to claim Schedule 1-A deductions
Filing thresholds increase for taxpayers 65+: Add $1,600 (single) or $1,300 per spouse (married) to the threshold amounts above. Blind taxpayers also receive additional amounts.
Common Form 1040 Mistakes to Avoid
Errors that delay refunds or trigger IRS notices
Wrong Filing Status
Choosing the wrong status affects your tax rate and deduction. Head of Household provides better rates than Single — check if you qualify by maintaining a home for a qualifying dependent.
Missing Income Sources
The IRS receives copies of all your W-2s and 1099s. Forgetting gig income, investment gains, or cryptocurrency transactions triggers matching notices and potential audits.
Forgetting Schedule 1-A
New for 2025: Eligible taxpayers who skip Schedule 1-A miss out on deductions for tips, overtime, car loan interest, or the senior deduction — potentially leaving thousands of dollars on the table.
Incorrect SSN or Dependent Info
Typos in Social Security Numbers are the #1 cause of rejected e-filed returns. Double-check all SSNs and dependent dates of birth against Social Security cards.
Wrong Bank Account for Direct Deposit
Incorrect routing or account numbers on Lines 35b–35d delay your refund by weeks. Verify your bank details carefully — the IRS cannot redirect a deposit once sent.
Math Errors and Missing Signatures
Even with software, review your return for obvious errors. Paper filers: remember to sign and date your return. Joint filers must both sign. An unsigned return is treated as not filed.
Frequently Asked Questions
What documents do I need to file Form 1040?
You'll need: W-2 forms from all employers, 1099 forms (1099-NEC, 1099-INT, 1099-DIV, 1099-B, 1099-R, etc.), Social Security numbers for yourself, spouse, and dependents, last year's AGI (for e-filing identity verification), bank routing and account numbers (for direct deposit refund), and any documentation for deductions or credits you plan to claim.
Can I file Form 1040 for free?
Yes, several options exist. IRS Free File (for AGI of $84,000 or less), IRS Direct File (available in many states), and Free File Fillable Forms (any income level, but no guidance) all allow you to prepare and e-file for free. You can also fill out the form using our tool and mail it to the IRS at no cost.
How long does it take to get a refund?
E-filed returns with direct deposit typically receive refunds within 21 days. Paper-filed returns can take 6-8 weeks or longer. You can check your refund status at IRS.gov/refunds or the IRS2Go mobile app starting 24 hours after e-filing.
What is the difference between Form 1040 and 1040-SR?
Form 1040-SR is a larger-print alternative for taxpayers aged 65 and older. It has the exact same lines, calculations, and attachments — the only difference is font size and readability. You can use either form regardless of age, but 1040-SR includes a helpful standard deduction chart on page 1.
Do I need to report cryptocurrency on Form 1040?
Yes. Form 1040 includes a Digital Asset question near the top of page 1 asking if you received, sold, exchanged, or otherwise disposed of any digital assets (cryptocurrency, NFTs, stablecoins). Answer "Yes" if you had any transactions — you may need to complete Form 8949 and Schedule D to report gains or losses.
What happens if I can't pay my taxes by April 15?
File your return on time even if you can't pay — the failure-to-file penalty (5% per month) is much higher than failure-to-pay (0.5% per month). You can request an installment agreement (Form 9465) or apply for an offer in compromise. The IRS also accepts partial payments. Interest accrues from April 15 regardless.
Can I claim the Schedule 1-A deductions if I take the standard deduction?
Yes. This is one of the most beneficial aspects of the new OBBBA deductions. Schedule 1-A deductions for qualified tips, overtime, car loan interest, and the senior deduction are "below-the-line" deductions that apply on top of your standard deduction. You don't need to itemize to claim them.
What schedules might I need with Form 1040?
Common schedules include: Schedule A (itemized deductions), Schedule B (interest/dividends over $1,500), Schedule C (self-employment income), Schedule D (capital gains), Schedule E (rental/partnership income), Schedule SE (self-employment tax), Schedule 1 (additional income/adjustments), Schedule 1-A (NEW — tips, overtime, car interest, senior deductions), Schedule 2 (additional taxes), and Schedule 3 (additional credits).
Ready to File Your 2025 Tax Return?
Fill out IRS Form 1040 online — accurate, secure, and hassle-free
Related Tax Forms & Resources
Forms commonly filed with the 1040
About IRS Form 1040 for Tax Year 2025
IRS Form 1040 (U.S. Individual Income Tax Return) is the most widely filed tax document in America, used by over 150 million taxpayers each year. For Tax Year 2025, the form must be filed by April 15, 2026, and incorporates significant legislative changes from the One Big Beautiful Bill Act (OBBBA) signed into law in 2025.
The headline change for 2025 is the introduction of Schedule 1-A, a brand-new form that consolidates four "below-the-line" deductions available to eligible taxpayers regardless of whether they choose the standard deduction or itemize. These include exclusions for qualified tips (up to $25,000), overtime compensation (up to $12,500), new car loan interest (up to $10,000 for U.S.-assembled vehicles), and an enhanced deduction for seniors aged 65 and older (up to $6,000). Together, these provisions could save qualifying taxpayers thousands of dollars annually.
Additional 2025 updates include an increased Child Tax Credit of $2,200 per qualifying child (up from $2,000), a raised SALT deduction cap of $40,000 for joint filers (up from $10,000), and expanded digital asset reporting requirements covering cryptocurrency, NFTs, and stablecoins. The standard deduction rises to $15,750 for single filers and $31,500 for married couples filing jointly.
Our free online Form 1040 tool provides the current 2025 IRS form with an intuitive fillable interface. Whether you're a first-time filer or need to review the new Schedule 1-A deductions before working with your tax preparer, our secure platform helps you access, fill out, and download your 1040 quickly and accurately. For a comprehensive walkthrough, see our complete 1040 filing guide.