2018 Form 1040 Filing Checklist
Purpose
Form 1040 (2018) reports annual U.S. individual income tax for resident aliens and citizens. The 2018 tax year marked the first full year under the Tax Cuts and Jobs Act (TCJA) rules, featuring redesigned forms with new schedules, revised standard deductions, the elimination of personal exemptions, and the introduction of the qualified business income deduction.
Filing Steps
Step 1: Verify filing status and standard deduction
Select one filing status that applies to your situation. The 2018 standard deductions are: Single $12,000; Married Filing Jointly or Qualifying Widow(er) $24,000; Head of Household $18,000; Married Filing Separately $12,000. If you were born before January 2, 1954, or are blind, you may claim an additional standard deduction amount. Check the appropriate boxes on the form.
Step 2: Report wages, salaries, and tips
Enter all wages, salaries, and tips on Line 1. Attach all Forms W-2 received from employers. Include all taxable compensation, such as back pay, bonuses, taxable fringe benefits, and other employee compensation. Ensure the amounts match Box 1 of your W-2 forms.
Step 3: Report interest and dividend income
Report tax-exempt interest on Line 2a for informational purposes only. Enter taxable interest on Line 2b. On Line 3a, report qualified dividends that may qualify for preferential tax rates. Enter ordinary dividends on Line 3b. Qualified dividends must meet specific holding period requirements under TCJA rules.
Step 4: Report retirement and Social Security income
On Line 4a, enter gross distributions from IRAs, pensions, and annuities. On Line 4b, report only the taxable portion after applying the appropriate basis recovery calculations. On Line 5a, enter gross Social Security benefits received. On Line 5b, report the taxable amount determined using the combined income test.
Step 5: Calculate total income
Add Lines 1 through 5b to increase your base income. If you have additional income such as capital gains, unemployment compensation, or business income, report it on Schedule 1, lines 1 through 21. Enter the total from Schedule 1, Line 22 (additional income) on Form 1040, Line 6. This line represents your total income before adjustments.
Step 6: Calculate adjusted gross income
Complete Schedule 1, Part II (lines 23 through 36) to claim adjustments to income. These include educator expenses, student loan interest deduction, self-employment tax deduction, IRA contributions, and health savings account deductions. Enter the total adjustments from Schedule 1, Line 36. Subtract this amount from Line 6 to calculate your adjusted gross income (AGI), which goes on Line 7.
Step 7: Determine your deduction amount
On Line 8, enter either the standard deduction for your filing status or your itemized deductions from Schedule A. You cannot claim both. The 2018 TCJA suspended personal exemptions and miscellaneous itemized deductions subject to the 2% floor. Schedule A now includes only certain deductions, such as mortgage interest, state and local taxes (limited to $10,000), charitable contributions, and medical expenses exceeding 7.5% of AGI.
Step 8: Calculate qualified business income deduction
If you have qualified business income from a trade or business, including pass-through entities, you may be eligible for a deduction on Line 9. Use Form 8995 (simplified) or Form 8995-A (detailed) to calculate this deduction. The deduction is generally the lesser of 20% of your qualified business income or 20% of your taxable income minus net capital gain. Income thresholds and business type may limit this deduction.
Step 9: Determine taxable income
Subtract Line 8 (deductions) and Line 9 (QBI deduction) from Line 7 (AGI) to arrive at your taxable income on Line 10. If the result is zero or negative, enter zero. This total is the amount on which your tax will be calculated using the 2018 tax tables or tax computation worksheet.
Step 10: Calculate tax liability
Using your taxable income from Line 10, determine your tax using the 2018 tax rate schedules or tax tables. Enter the results on Line 11a. If you have qualified dividends or capital gains, you may need to use the Qualified Dividends and Capital Gain Tax Worksheet. Add any additional taxes from Schedule 2 to Line 11a, and check the box indicating which forms apply (Form 8814, Form 4972, or other special tax computations).
Step 11: Apply nonrefundable credits
On Line 12a, enter your child's tax credit or credit for other dependents using the Child Tax Credit and Credit for Other Dependents Worksheet. Add any other nonrefundable credits from Schedule 3, such as education credits, foreign tax credits, or residential energy credits. Check the box on Line 12b if Schedule 3 applies. These credits reduce your tax but cannot create a refund.
Step 12: Calculate net tax and apply withholding
Subtract Line 12 from Line 11 to determine your net tax liability on Line 13. Add any additional taxes from Schedule 4 (such as self-employment tax, additional Medicare tax, or household employment taxes) to get your total tax on Line 15. On Line 16, enter the total federal income tax withheld from Forms W-2, 1099, and other information returns.
Step 13: Claim refundable credits
Report the Earned Income Credit on Line 17a. If claiming the Additional Child Tax Credit, complete Schedule 8812 and enter the amount on Line 17b. Report the American Opportunity Credit refundable portion from Form 8863 on Line 17c. Add any other refundable credits from Schedule 5 and check the box. Add Lines 16 and 17 together for total payments on Line 18.
Step 14: Determine refund or amount owed
If Line 18 (total payments) is more than Line 15 (total tax), you have an overpayment. Enter the difference on Line 19. On Line 20a, indicate the amount you would like refunded to you. Complete Lines 20b through 20d if you wish to direct deposit. On Line 21, enter any amount you want applied to your 2019 estimated tax. If Line 15 is more than Line 18, you owe tax. Subtract Line 18 from Line 15 and enter the amount owed on Line 22.
Step 15: Sign and submit your return
Both spouses must sign and date the return if filing jointly. Enter your occupation and any Identity Protection PIN if the IRS issued you one. Attach all required schedules and forms in sequence. If filing electronically, follow the instructions provided by your software. If filing by paper, mail to the appropriate IRS address by April 15, 2019 (April 17 for Maine and Massachusetts residents due to holidays).
Special Considerations
New Form Structure: The 2018 Form 1040 employs a building-block approach, featuring six new numbered schedules. Many taxpayers only need the main form, but additional schedules are required for more complex situations. Forms 1040A and 1040EZ are no longer available, starting with the 2018 tax year.
Tax rate changes: The TCJA reduced most tax rates for 2018 and beyond. The new brackets are 10%, 12%, 22%, 24%, 32%, 35%, and 37%. Compare your 2018 tax liability to prior years to understand how the changes affected your situation.
Alternative minimum tax: The AMT exemption amounts increased significantly for 2018. The exemption is $70,300 for single filers and $109,400 for married couples filing jointly, with higher phase-out thresholds of $500,000 and $1,000,000, respectively.
Disaster relief provisions: If you were affected by certain federally declared disasters in 2018, you may be eligible for special tax relief, including the option to use 2017 earned income to calculate your 2018 Earned Income Credit or Additional Child Tax Credit, or an increased standard deduction based on qualified disaster losses.
Record retention: Keep copies of your filed return, all supporting documents, receipts, and records for at least three years from the date you filed or two years from the date you paid the tax, whichever is later. Keep records longer if you file a claim for a loss from worthless securities, a bad debt deduction, or if the IRS assesses additional tax.
Need Help With Your Tax Filing?
If you’re missing tax documents or want to ensure the numbers you enter match IRS records, we can help.
We offer:
- Full IRS transcript retrieval (Wage & Income + Account)
- Professional tax form review
- Preparation & filing support
- Tax relief options if you owe the IRS
Call now before filing: (888) 260-9441
Fast transcript pull available
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.
