IRS Form 1040 Tax Year 2013: Accurate Filing Checklist
2013 Year-Specific Context
The 2013 Form 1040 introduces three major tax law changes that affect individual filers: the Additional Medicare Tax of 0.9% on high earners, effective beginning in 2013; the Net Investment Income Tax of 3.8%, also effective starting in 2013; and higher tax brackets, including a new top rate of 39.6%. These changes, along with the personal exemption amount of $3,900 per person and the same standard deduction limits, lead to different filing rules for 2013 compared to 2012 and later years.
Same-sex married couples filing jointly or separately must file using their married status on 2013 returns, regardless of their state of residence. This represents a significant change in federal tax treatment for these couples.
Year-Specific Programs Applicable to Form 1040 (2013)
Taxpayers who purchased their principal residence between April 9, 2008, and May 1, 2010, must continue making repayment installments on Form 1040, line 59b, as the first-time homebuyer credit claimed in prior years requires 15 equal annual payments through 2025.
Specific charitable contributions made after March 25, 2014, but before April 15, 2014, for Typhoon Haiyan relief may be deducted on the 2013 return if the taxpayer itemizes deductions on Schedule A and the contribution meets all other requirements for a charitable deduction.
Ten-Step 2013 Form 1040 Filing Checklist
Step 1: Verify Filing Requirement and Gross Income Threshold
Determine whether your filing status requires you to file by comparing your gross income to the 2013 thresholds. Filing status options include single, married filing jointly, married filing separately, head of household, or qualifying widow(er) with dependent child.
Single taxpayers under the age of 65 must file if their gross income exceeds $10,000. Married filing jointly under age 65 must file if gross income was at least $20,000. Head of household filers under age 65 must file if their gross income was at least $12,850.
If you are age 65 or older, your threshold increases: single filers to $11,500, married filing jointly to $21,200, and head of household to $14,350. Filers who are married and filing separately must file if their gross income is at least $3,900, regardless of their age.
Step 2: Gather Required Income Documents
Collect all 2013 Forms W-2 for wages, salaries, tips, and other compensation from each employer for line 7. Obtain all 1099-INT forms for taxable interest on line 8a and 1099-OID forms for original issue discount.
Retrieve 1099-DIV forms showing ordinary dividends for line 9a and qualified dividends for line 9b. Obtain 1099-G forms for unemployment compensation and state tax refunds, 1099-R forms for pensions and IRA distributions, and Schedule K-1 forms from partnerships, S corporations, or trusts if applicable.
Step 3: Account for New 2013 Taxes on Income
Calculate any Additional Medicare Tax owed on wages, self-employment income, and railroad retirement compensation exceeding filing-status thresholds. The thresholds are $200,000 for single filers and heads of household, $250,000 for married filing jointly, and $125,000 for married filing separately. Use Form 8959 to calculate this 0.9% tax.
Determine if you owe Net Investment Income Tax of 3.8% on the lesser of your net investment income or the excess of your modified adjusted gross income over the same thresholds. Use Form 8960 to calculate this liability if your modified AGI exceeds these amounts.
Step 4: Elect Adjusted Gross Income (AGI) Reductions
Claim above-the-line deductions on lines 23 through 35, which reduce your AGI and do not require itemization. These include educator expenses of up to $250 on line 23, a self-employed health insurance deduction on line 29, IRA contributions on line 32, student loan interest of up to $2,500 on line 33, and a tuition and fees deduction on line 34.
These deductions reduce your AGI on line 37 and provide tax benefits regardless of whether you itemize deductions on Schedule A.
Step 5: Choose Standard or Itemized Deductions
Elect between the standard deduction and itemized deductions on Schedule A. For 2013, the standard deduction is $6,100 for single filers, $12,200 for married filing jointly, $6,100 for married filing separately, and $8,950 for head of household. Add $1,500 if you are 65 years old or older or blind.
If itemizing on Schedule A, medical expenses are deductible only to the extent they exceed 10% of your AGI. However, if either you or your spouse was born before January 2, 1949, the threshold remains at 7.5% of AGI. Other itemized deductions include mortgage interest on line 10, state and local taxes on line 5, charitable contributions on line 17, and casualty losses on line 20.
Step 6: Calculate Exemptions and Taxable Income
Claim personal exemptions on line 6a for yourself and on line 6b for your spouse if filing jointly. Claim exemptions for each qualifying dependent on line 6c. Multiply the total count on line 6d by $3,900 to calculate the exemption amount on line 42.
Reduce your exemptions if your AGI on line 38 exceeds certain thresholds. The exemption phaseout begins at $150,000 for married filing separately, $250,000 for single filers, $275,000 for head of household, and $300,000 for married filing jointly or qualifying widow(er). Use the exemption phaseout rules in the Form 1040 instructions to calculate the reduction.
Step 7: Report Form 8949 and Schedule D Transactions
If you sold securities, mutual funds, bonds, or other capital assets in 2013, complete Form 8949 before completing Schedule D. Separate transactions into short-term holdings of one year or less and long-term holdings of more than one year. Designate whether the cost basis is reported on Form 1099-B to the IRS.
Transfer totals from Form 8949 to Schedule D to calculate net long-term and short-term capital gains or losses. Enter net capital gain or loss on Form 1040, line 13.
Step 8: Report and Limit Credits
Claim nonrefundable credits, including the child tax credit on line 51, foreign tax credit on line 47 with Form 1116, residential energy credits on line 52 with Form 5695, and education credits on line 49 with Form 8863. The American Opportunity Credit provides up to $2,500 per student, with 40% of the credit being refundable. The Lifetime Learning Credit allows for a credit of up to $2,000 per tax return.
Claim refundable credits, including Earned Income Credit on line 64a with Schedule EIC if you have qualifying children, Additional Child Tax Credit on line 65 with Schedule 8812, and the refundable portion of the American Opportunity Credit on line 66.
Step 9: Calculate Total Tax, Including First-Time Homebuyer Repayment
Add line 44 for income tax, 45 for alternative minimum tax if applicable using Form 6251, and lines 56 through 60 for other taxes, including self-employment tax, household employment tax, and first-time homebuyer credit repayment. The total appears on line 61.
Report first-time homebuyer repayment on line 59b with Form 5405 if you claimed this credit in prior years. The repayment period spans from 2010 through 2025, with equal annual installments of $500 per year for most taxpayers who claimed the maximum credit of $7,500.
Step 10: Sign, Date, and File
Enter total payments on line 72, including federal withholding from line 62, estimated tax payments on line 63, and credits from lines 64 through 71. Calculate overpayment on line 73 or the amount owed on line 76.
Sign and date line 78 for the taxpayer's signature and line 79 for the spouse's signature if filing jointly. Both spouses must sign. File Form 1040 with attachments in the order of their sequence numbers, with W-2s attached first, then schedules, then forms.
Attach Schedule A if itemizing, Schedule C or C-EZ if self-employed, Schedule D and Form 8949 if reporting capital gains or losses, and Schedule SE if self-employment tax applies. If filing late, attach Form 4868 dated and filed by the original April 15, 2014, deadline if you need an automatic six-month extension to October 15, 2014. Note that payment of tax is still due by April 15, regardless of any filing extensions.
Key Form Changes for 2013 Form 1040
The 2013 instructions clarified that if you claimed the first-time homebuyer credit on your 2008, 2009, or 2010 return and the purchase price exceeded $800,000, you are ineligible for the credit. Eligible filers must repay via 15 equal annual payments from 2010 through 2025, reported on Form 5405.
For 2013 and later, filers with Medicare wages or RRTA compensation exceeding the filing-status thresholds must calculate the Additional Medicare Tax using Form 8959. Filers with net investment income exceeding modified AGI thresholds must calculate the Net Investment Income Tax using Form 8960.
Operational Guidance
Both the taxpayer and the spouse, if filing jointly, must sign and date the return on lines 78 and 79. You must complete Schedule A if itemizing, Schedule C or C-EZ if reporting business income, and Schedule D with Form 8949 if reporting capital gains and losses.
Attachment sequence numbers are provided on each schedule and form and must be listed in numerical order. W-2 and 1099 documents should be stapled only to the first page of Form 1040.
If you file an extension using Form 4868, remember that an automatic six-month extension to file does not extend the time to pay tax due. Any tax not paid by the April 15, 2014, deadline incurs interest and penalties.
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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.
