U.S. Individual Income Tax Return 1040 for Tax Year
2018 Checklist
Form 1040 for tax year 2018 reflects significant structural changes introduced by the Tax Cuts
and Jobs Act, such as wider tax brackets, lower tax rates, higher standard deductions, and the suspension of personal exemptions. Exemption line items were removed, and supporting schedules were reorganized to align with TCJA requirements.
For 2018, the ACA individual shared responsibility payment still applies if you or a family member did not maintain qualifying health coverage for any month. This payment is calculated on Form 8965 and reported on Schedule 4, line 61, which then carries over to Form 1040, line
14.
Essential Income Documentation Requirements
Gather W-2s and 1099 forms for interest, dividends, capital gains, unemployment compensation, Social Security benefits, and other income before you begin preparing your return. If you received distributions from an S corporation, partnership, or trust, Form K-1 determines your share of income, deductions, and credits.
The 2018 instructions require income reporting from all sources, including business income from
Schedule C or farm income from Schedule F. Verify your filing status eligibility and confirm the standard deduction amount that corresponds to your status and age.
Taxpayers age 65 or older, or blind, qualify for an additional standard deduction amount. Consult the Standard Deduction Table in the 2018 instructions for your exact filing status amount.
Itemized Deductions and Schedule A Documentation
If claiming itemized deductions, gather and organize Schedule A documentation for charitable contributions, state and local taxes, mortgage interest, and medical expenses. The deduction for state and local taxes is capped at $10,000, or $5,000 if married filing separately, for tax year
2018 under the Tax Cuts and Jobs Act. Personal exemptions are suspended under TCJA, so you do not claim exemptions on the 2018 Form 1040. The overall limit on itemized deductions has been eliminated for the 2018 tax year.
Health Coverage Reporting and Compliance
Obtain Form 1095-A, 1095-B, or 1095-C if you, your spouse, or dependents had health coverage during 2018. Calculate the ACA shared responsibility payment if applicable using
Form 8965.
If you lack qualifying coverage for any month, complete Form 8965, report the payment on
Schedule 4, line 61, and attach Form 8965 to your return. The payment amount then flows to
Form 1040, line 14, as part of other taxes owed.
Investment Income and Capital Transactions
Collect all dividend and capital gain statements for accurate reporting on your federal tax return.
Qualified dividends and long-term capital gains are subject to preferential tax rates under the
2018 tax law. Use Schedule D if you have capital gains or losses, and attach it to Form 1040 along with any required supporting forms. Investment income must be reported regardless of the amount you receive during the year.
Adjustments to Income and Schedule 1 Requirements
Complete Schedule 1 if you have alimony paid, educator expenses, student loan interest, or other above-the-line deductions that reduce your adjusted gross income. Educator expenses appear on Schedule 1, line 23; student loan interest appears on line 33; and alimony paid appears on line 19a.
The total adjustments from Schedule 1, line 36, are subtracted from line 6 to calculate adjusted gross income on line 7 of Form 1040. These adjustments reduce your taxable income before calculating your final tax liability.
Dependent Claims and Verification Standards
If you claim dependents, gather Social Security numbers and verify their relationships, residency, and support requirements per the 2018 Form 1040 instructions. Personal exemptions are suspended for 2018; however, dependent claims still require valid Social Security numbers and must pass the relationship and residency tests.
List dependents on Form 1040, page 1, in the designated dependents section. Each dependent must meet all Internal Revenue Service qualifying criteria.
Self-Employment Income and Business Reporting
Calculate and prepare Schedule C for business income or loss, or Schedule F for farm income or loss if you operate as a self-employed individual. Attach these schedules to Form 1040 when you file your federal income tax return.
Self-employment tax is calculated on Schedule SE and reported on Schedule 4, line 57, which then flows to Form 1040, line 14, as part of other taxes. Self-employed individuals must report all business income received during the tax year.
Tax Credits and Supporting Documentation
Identify all tax credits you qualify for, including EITC, Child Tax Credit, education credits, and child care expenses, then gather supporting documents for each credit claimed. The Child Tax
Credit and Credit for Other Dependents are calculated using the worksheets found in the Form
1040 instructions.
You claim these credits directly on Form 1040, line 12a, without using Schedule 8812 unless you qualify for the Additional Child Tax Credit. EITC requires completion of the appropriate earned income credit schedule, and all the necessary credit schedules must be attached to your return when filing.
Schedule 8812 is used only to claim the Additional Child Tax Credit, which is the refundable portion that may give you a tax refund even if you do not owe any tax. The Additional Child Tax
Credit allows eligible taxpayers to receive up to $1,400 per qualifying child as a refundable credit.
Assembly and Filing Procedures
Sign and date Form 1040, and verify all schedules attached in the correct order as specified in the 2018 instructions. Both the taxpayer and spouse, if married filing jointly, must sign and date the return, as unsigned returns remain incomplete.
Assemble schedules in the following order: Form 1040 first, then Schedules 1 through 6, and, if applicable, additional forms such as 8812, 8965, and others. Filing electronically through tax preparation software or the IRS Free File program provides the fastest processing and most accurate return submission.
Key Line Changes for 2018 Form 1040
The 2018 Form 1040 underwent a significant redesign to implement the provisions of the Tax
Cuts and Jobs Act. Dependent exemptions, formerly shown on line 6e, no longer appear on the form because personal exemptions are suspended.
Taxpayers can still claim dependents to qualify for the Child Tax Credit and the Credit for Other
Dependents, but the exemption amount line has been removed from the 2018 form. The form now uses a building-block approach, with numbered schedules replacing the former 1040A and
1040EZ forms.
The standard deduction and taxable income calculations changed substantially from prior years.
Standard deduction is reported directly on line 8 with no personal exemption subtraction applied, and taxable income on line 10 is calculated as adjusted gross income minus standard deduction or itemized deductions.
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