U.S. citizens and resident aliens must report worldwide income. If a taxpayer is required to file, all income—earned and unearned—is reported on Form 1040 or Form 1040‑SR.
Filing requirements depend on income, filing status, and age. Dependents follow different rules than non‑dependents.
Gross Income Overview
Gross income includes both earned and unearned income.
Earned Income
Includes wages, salaries, tips, professional fees, taxable scholarships, and fellowship grants.
Unearned Income
Includes unemployment compensation, taxable Social Security, pensions, annuities, canceled debt, trust income, interest, dividends, and capital gains.
Filing Requirements for Most Taxpayers
A taxpayer must file if gross income meets or exceeds the threshold for their filing status and age.
2025 Filing Thresholds
(Selected examples)
- Single under 65 — $15,750
- Single 65+ — $17,750
- Head of Household under 65 — $23,625
- MFJ both under 65 — $31,500
- MFS — $5 (always effectively required)
- Qualifying Surviving Spouse under 65 — $31,500
These thresholds determine when a taxpayer must file a federal return.
Filing Requirements for Dependents
If a taxpayer can be claimed as a dependent, filing requirements depend on earned income, unearned income, age, and blindness.
Single Dependents – 2025
A dependent must file if:
- Unearned income > $1,350
- Earned income > $15,750
- Gross income > the larger of:
- $1,350, or
- Earned income (up to $15,300) + $450
For dependents who are 65 or older or blind, the thresholds increase.
Parents may elect to report a child’s interest and dividends on the parent’s return if certain conditions are met. This avoids the child filing a separate return.
Additional Filing Requirements
A taxpayer must file even if income is below the threshold when any of the following apply:
- Net earnings from self‑employment ≥ $400
- Church employee wages ≥ $108.28
- Received HSA, Archer MSA, or Medicare Advantage MSA distributions
- Received advance premium tax credit payments
- Owes special taxes, including:
- Alternative minimum tax
- Additional tax on retirement accounts
- Household employment taxes
- Social Security/Medicare tax on unreported tips
- Write‑in taxes
- Recapture taxes
File Even If Not Required
A taxpayer should file to claim refundable credits such as:
- Earned income credit
- Additional child tax credit
- American opportunity credit (refundable portion)
- Adoption credit (refundable portion)
- Fuel tax credit
- Premium tax credit
Form 1040 and Form 1040‑SR
Taxpayers use Form 1040 or Form 1040‑SR to report income, deductions, credits, and tax.
Form 1040‑SR is available to taxpayers age 65 or older and uses the same schedules as Form 1040.
The modern Form 1040 uses a building‑block structure, requiring additional schedules for more complex returns.
Schedules for Form 1040
Schedule 1 – Additional Income and Adjustments
Reports items such as unemployment compensation, gambling winnings, and adjustments like student loan interest and educator expenses.
May require:
- Schedule C – business income
- Schedule E – rental, royalties, partnerships, S corps, trusts
- Schedule F – farming income
Schedule 1‑A – Additional Deductions
Temporary deductions (2025–2028) including:
- No tax on tips
- No tax on overtime
- No tax on car loan interest
- Enhanced deduction for seniors
Schedule 2 – Additional Taxes
Includes self‑employment tax, AMT, household employment taxes, and excess premium tax credit repayment.
May require:
- Schedule SE – self‑employment tax
- Schedule H – household employment taxes
Schedule 3 – Additional Credits and Payments
Includes foreign tax credit, education credits, general business credit, and extension payments.
May require:
- Schedule R – credit for elderly or disabled
Additional Schedules
Schedule A – Itemized Deductions
Used when itemized deductions exceed the standard deduction.
Schedule B – Interest and Dividends
Required for interest/dividends > $1,500 or certain special situations (OID, bond premium, foreign accounts, nominee distributions).
Schedule D – Capital Gains and Losses
Used with Form 8949 to report sales of capital assets.
Schedule J – Income Averaging
For farmers and fishermen electing income averaging.
Schedule 8812 – Child‑Related Credits
Calculates child tax credit, credit for other dependents, and additional child tax credit.
Schedule EIC – Earned Income Credit
Provides qualifying child information.