Form 1040 (2016) Filing Checklist
The 2016 Form 1040 incorporated significant changes related to the Affordable Care Act, including mandatory health coverage reporting on line 61 and premium tax credit reconciliation through Form 8962. This was the third full year of ACA enforcement under the individual mandate, with enhanced standard deduction calculations for taxpayers aged 65 and older or those who are blind.
Step-by-Step Filing Checklist
Step 1: Select Your Filing Status
Verify that your filing status accurately reflects your household composition as of December 31, 2016. If you are claiming the Qualifying Widow(er) with Dependent Child status, ensure that you meet all the following requirements: your spouse died in 2014 or 2015, you did not remarry before the end of 2016, and you have a qualifying dependent child. The child must be under age 19 (or under 24 if a full-time student) and younger than you, or any age if permanently and totally disabled. Do not claim this status if your spouse died in 2016—use Married Filing Jointly instead.
Step 2: Verify Social Security Numbers
Enter correct Social Security numbers for yourself, your spouse (if filing jointly), and all dependents on line 6c. Cross-reference these numbers with Forms W-2 received from employers. Mismatched or missing SSNs cause processing delays and may result in rejected returns or disallowed credits.
Step 3: Claim Personal and Dependent Exemptions
Claim your personal exemption on line 6a and your spouse’s exemption on line 6b only if neither of you can be claimed as a dependent by another taxpayer. List all qualifying dependents on line 6c with their SSNs and relationships. Calculate total exemptions on line 6d and multiply by $4,050 on line 42. Note that exemption amounts phase out for higher-income taxpayers with adjusted gross income exceeding $259,400 (single), $285,350 (head of household), or $311,300 (married filing jointly).
Step 4: Report All Wage Income
Report total wages, salaries, and tips on line 7 from all Forms W-2. Attach every W-2 received to the front of your return, even if multiple forms are from different employers. If you did not receive a W-2 by the filing deadline, contact your employer and follow IRS procedures—do not estimate wage amounts.
Step 5: Calculate Your Standard Deduction
Complete the standard deduction calculation on line 40. Base amounts are $6,300 (single or married filing separately), $12,600 (married filing jointly or qualifying widow(er)), or $9,300 (head of household). If you or your spouse were born before January 2, 1952, or are blind, check the applicable boxes on line 39a or 39b. Add $1,550 per box for single or head of household filers, or $1,250 per box for married filing jointly or qualifying widow(er) filers. Use the worksheet provided in the instructions if you are claiming these additional amounts.
Step 6: Determine Taxable Income
Calculate adjusted gross income on line 37 by subtracting allowable adjustments (lines 23–35) from total income (line 22). Enter your adjusted gross income on line 38. Subtract your standard or itemized deduction (line 40) and exemptions (line 42) from line 38. The result is your taxable income on line 43. Verify that line 38 minus line 40 minus line 42 equals line 43.
Step 7: Reconcile Premium Tax Credits
If you or anyone in your household received advance premium tax credits through the Health Insurance Marketplace in 2016, you must attach Form 8962 to reconcile these payments. Form 8962 compares advance payments to your actual allowable credit based on final household income. Enter any excess advance premium tax credit repayment on line 46, or enter net premium tax credit on line 69 if you qualify for additional credit. Failure to attach Form 8962 when required will result in delayed processing.
Step 8: Report Self-Employment Tax
Suppose you had net self-employment earnings of $400 or more, complete Schedule SE to calculate self-employment tax. Report the total self-employment tax on line 57. Claim the deductible portion (one-half of self-employment tax from Schedule SE, line 6 or line 13) as an above-the-line deduction on line 27. This deduction reduces your adjusted gross income.
Step 9: Report Health Coverage or Pay Responsibility Payment
Check the “Full-year coverage” box on line 61 if you, your spouse, and all dependents had qualifying health coverage for every month of 2016. If anyone lacked coverage, attach Form 8965 to claim a coverage exemption, or calculate the individual shared responsibility payment using the worksheets in the Form 8965 instructions and enter the amount on line 61. The payment is the greater of a flat dollar amount or a percentage of household income above the filing threshold.
Step 10: Claim Education Credits Correctly
Report nonrefundable education credits on line 50 using the amount from Form 8863, line 19. This includes both American Opportunity Credit and Lifetime Learning Credit amounts that reduce your tax liability. Separately, report the refundable portion of the American Opportunity Credit on line 68 using the amount from Form 8863, line 8. Do not duplicate these amounts between Schedule A itemized deductions and Form 8863. The refundable portion on line 68 can increase your refund even if you owe no tax.
Step 11: Calculate Total Payments
Add up all your tax payments and credits on line 74, which includes federal income tax taken from Forms W-2 and 1099 (line 64), estimated tax payments made in 2016 (line 65), earned income credit (line 66a), and any other relevant credits (lines 67–73). Do not include estimated payments intended for 2017. Verify withholding amounts match your W-2 forms exactly.
Step 12: Sign and Date Your Return
Both spouses must sign and date the return if filing jointly and list their occupations. Either spouse may sign first, but both signatures and dates are required. Electronic signatures are not permitted on paper returns. If using a paid preparer, ensure they also sign, date, and include their PTIN. Keep a complete copy of your signed return and all attachments for your records.
Important Reminders
- Filing Deadline: File Form 1040 by April 18, 2017. The due date is April 18 instead of April 15 due to the Emancipation Day holiday in the District of Columbia, regardless of where you live.
- Refund Delays: The IRS cannot issue refunds before February 15, 2017, for returns claiming the Earned Income Credit or Additional Child Tax Credit. This delay applies to your entire refund, not just the credit portion.
- Electronic Filing: Consider using IRS Free File if your adjusted gross income was $64,000 or less. E-filing reduces errors, speeds refunds, and provides confirmation of receipt.
- Extension to File: Use Form 4868 to request an automatic six-month extension to file, but remember that an extension to file is not an extension to pay. Interest accrues on unpaid taxes from the April 18 deadline.
Special Considerations
- Age 65 Determination: You are considered age 65 on the day before your 65th birthday. Therefore, if you were born before January 2, 1952, you qualify for the additional standard deduction amount in 2016.
- ITIN Renewal: If you were assigned an Individual Taxpayer Identification Number before January 1, 2013, or have not used it on a tax return in three consecutive years, you may need to renew it using Form W-7.
- Marketplace Forms: You should receive Form 1095-A from the Health Insurance Marketplace by early February 2017 if you enrolled through the Marketplace. You may receive Form 1095-B or 1095-C from your insurance provider or employer by early March 2017. You do not need to wait for these forms to file your return if you have other coverage documentation, and you should not attach them to your return.
- Tax Credit Disqualification: Taking the child tax credit, additional child tax credit, or American Opportunity Credit when you are not eligible may result in being barred from claiming those credits for up to 10 years.
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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.
