Form 1040 Paper Filing Checklist for Tax Year 2023
What’s New for 2023
The 2023 Form 1040 includes several important updates. Standard deduction amounts increased to $13,850 for single filers, $27,700 for married filing jointly, and $20,800 for head of household. Taxpayers age 65 or older or blind receive an additional standard deduction of $1,500 per condition for married filers or $1,850 per condition for single and head of household filers.
All taxpayers must answer the digital asset question on line 6c regarding cryptocurrency and other digital asset transactions during 2023. Schedule 3 includes updated lines for clean energy and vehicle credits. Form 1040-SR remains available for taxpayers born before January 2, 1959, as an alternative to Form 1040.
Advance premium tax credit reconciliation via Form 8962 is mandatory if advance payments were made for Marketplace health insurance coverage during 2023.
Ten-Step Paper Filing Process
Step 1: Determine Filing Status and Select Form
Choose your filing status as of December 31, 2023: Single, Married Filing Jointly, Married Filing Separately, Head of Household, or Qualifying Surviving Spouse. If you were born before January 2, 1959, you may use either Form 1040 or Form 1040-SR. Both forms use identical schedules and instructions.
Nonresident aliens and dual-status aliens must file Form 1040-NR instead of Form 1040. If you are married and filing separately, and your spouse is a nonresident alien, special rules apply regarding standard deduction eligibility.
Step 2: Gather Wage and Income Documents
Collect all Forms W-2 showing wages, salaries, and tips from 2023 employment. Verify that each Form W-2 displays box 1 wages, box 2 federal income tax withheld, and appropriate Social Security and Medicare withholding amounts. You must attach all Forms W-2 to your paper return.
Gather Forms 1099-INT for interest income, Forms 1099-DIV for dividend income, Forms 1099-R for retirement distributions, Form SSA-1099 for Social Security benefits, and any other income reporting forms received.
Step 3: Report Wages and Income
Enter total wages, salaries, and tips from all Forms W-2, Box 1, on Form 1040, Line 1. Report tax-exempt interest on line 2a and taxable interest on line 2b. Enter qualified dividends on line 3a and ordinary dividends on line 3b.
Step 4: Report Retirement Distributions and Social Security
Report gross IRA distributions on line 4a and the taxable amount on line 4b using information from Forms 1099-R. Enter gross pensions and annuities on line 5a and the taxable amount on line 5b.
Report gross Social Security benefits on line 6a using the amount from Form SSA-1099 box 3. Calculate and enter the taxable portion on line 6b using the worksheet in the instructions. If you received a lump-sum payment for prior years, check the box on line 6b to use the special lump-sum election method.
Step 5: Answer Digital Asset Question
On line 6c, answer yes or no to whether you received, sold, exchanged, or otherwise disposed of any digital asset during 2023. This includes cryptocurrency, stablecoins, and non-fungible tokens. You must answer this question regardless of your transaction activity.
Step 6: Report Capital Gains and Additional Income
Enter capital gain or loss on line 7. If required, attach Schedule D for capital gains and losses.
Report additional income from Schedule 1, line 10, on Form 1040 line 8. This includes unemployment compensation, Alaska Permanent Fund dividends, business income, rental income, and other types of income not reported elsewhere on Form 1040. Calculate total income by adding lines 1 through 8 and enter on line 9.
Step 7: Claim Adjustments to Income
Complete Schedule 1 to report adjustments to income, including educator expenses up to $300, health savings account deductions, self-employed health insurance, student loan interest deduction up to $2,500, and IRA deductions. Enter the total from Schedule 1, line 26, on Form 1040 line 10. Subtract line 10 from line 9 to calculate adjusted gross income on line 11.
Step 8: Calculate Standard or Itemized Deduction
Determine whether to claim the standard deduction or itemize using Schedule A. For 2023, standard deduction amounts are:
- Single or Married Filing Separately: $13,850
- Married Filing Jointly or Qualifying Surviving Spouse: $27,700
- Head of Household: $20,800
Add the standard deduction if you are age 65 or older or blind: $1,500 per qualifying condition for married filers or $1,850 per qualifying condition for single and head of household filers. Both age and blindness qualify as separate conditions, so taxpayers meeting both criteria receive double the additional amount.
If you are claimed as a dependent on another person’s return, your standard deduction is limited to the greater of $1,250 or your earned income plus $400. Still, it cannot exceed the regular standard deduction for your filing status. Enter the standard deduction or itemized deductions on line 12.
Step 9: Calculate Qualified Business Income Deduction
If you have qualified business income from a partnership, S corporation, sole proprietorship, or rental real estate, calculate the qualified business income deduction using Form 8995 or Form 8995-A. For 2023, if your taxable income before this deduction exceeds $182,100 for single or head of household or $364,200 for married filing jointly, you must use the more complex Form 8995-A. Enter the qualified business income deduction on line 13. Subtract lines 12 and 13 from line 11 to calculate taxable income on line 15.
Step 10: Calculate Tax and Credits
Use the tax tables or the qualified dividends and capital gain tax worksheet to calculate your tax. Enter the amount on line 16. Add any additional taxes from Schedule 2, including alternative minimum tax, self-employment tax, or excess advance premium tax credit repayment.
Claim the child tax credit or credit for other dependents on line 19. Complete Schedule 8812 if required for additional child tax credit calculations or if your child has an Individual Taxpayer Identification Number.
Report other nonrefundable credits on Schedule 3, Part I, including:
- Line 5: Residential clean energy credit and energy-efficient home improvement credit from Form 5695
- Line 6f: Previously-owned clean vehicle credit from Form 8936
- Line 7: Education credits from Form 8863
- Line 8: Retirement savings contributions credit from Form 8880
Step 11: Report Payments and Refundable Credits
Enter federal income tax withheld from Forms W-2 and 1099 on line 25a. Report 2023 estimated tax payments on line 26. Complete Schedule 3, Part II, for refundable credits, including earned income credit, additional child tax credit, American opportunity credit refundable portion, and net premium tax credit from Form 8962.
If you received advance payments for the premium tax credit related to Marketplace health insurance, you must complete and attach Form 8962 to reconcile those payments with your actual premium tax credit. This filing requirement applies even if you are not otherwise required to file a return.
Step 12: Calculate Refund or Amount Owed
Subtract your total tax from your total payments and credits. If payments exceed tax, you have a refund shown on line 34. If tax exceeds payments, you owe additional tax shown on line 37. For refunds, provide direct deposit information on lines 35a through 35d or request a paper check. You may also apply all or part of your refund to your 2024 estimated tax on line 36.
Step 13: Attach Required Schedules and Forms
Arrange documents in the following order:
- Form 1040 pages 1 and 2
- Forms W-2, W-2G, and 1099-R showing federal tax withheld
- Schedule 1 if reporting additional income or adjustments
- Schedule 2 if reporting additional taxes
- Schedule 3 if claiming credits beyond the child tax credit
- Schedule 8812 for the child tax credit and the additional child tax credit
- Schedule D for capital gains and losses
- Schedule A for itemized deductions
- Form 8962 for premium tax credit reconciliation
- Other required forms in numerical order
Do not staple documents together. Use paper clips if needed.
Step 14: Sign, Date, and Mail
Both you and your spouse, if filing jointly, must sign and date the return on page 2. Enter your occupation and daytime phone number. If the IRS issued you an Identity Protection PIN, enter it in the designated space.
Mail your return to the address specified in the Form 1040 instructions for your state and circumstances. The mailing address varies depending on whether you are enclosing a payment and your state of residence. Use certified mail with a return receipt for proof of timely filing.
Key Reminders
If married and filing jointly, both spouses must sign, even if one spouse has no income. You cannot claim the standard deduction if your spouse itemizes deductions; both must use the same method. Dependents have limited standard deduction amounts and generally cannot claim the earned income credit. Nonresident aliens face additional restrictions and are required to file Form 1040-NR.
Keep copies of your return and all supporting documents for at least three years from the filing deadline or date filed, whichever is later.
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This checklist is for educational purposes only and does not constitute tax or legal advice. Always review official IRS instructions and consult a qualified professional for guidance.
