1040NOW

What's New For 2023

For information about any additional changes to the 2023 tax law or any other developments affecting Form 1040 or 1040-SR or the instructions, go to IRS.gov/Form1040.

Due date of return. File Form 1040 or 1040-SR by April 15, 2024. If you live in Maine or Massachusetts, you have until April 17, 2024, because of the Patriots' Day and Emancipation Day holidays.

Standard deduction amount increased. For 2023, the standard deduction amount has been increased for all filers. The amounts are:

• Single or Married filing separately - $13,850.
• Married filing jointly or Qualifying widow(er) - $27,700.
• Head of household - $20,800.

Additional child tax credit amount increased. The maximum additional child tax credit amount has increased to $1,600 for each qualifying child.

New clean vehicle credit. The credit for new qualified plug-in electric drive motor vehicles has changed. This credit is now known as the clean vehicle credit. The maximum amount of the credit and some of the requirements to claim the credit have changed. The credit is still reported on Form 8936 and Schedule 3, line 6f. For more information, see Form 8936.

Previously owned clean vehicle credit. This credit is available for previously owned clean vehicles acquired and placed in service after 2022. For more information, see Form 8936.

New lines on Schedule 3. This year Schedule 3 has new lines.

• Line 5 has been separated into lines 5a and 5b so that the residential clean energy credit and the energy efficient home improvement credit reported on Form 5695 each have their own line.
• New line 6m was added to report the credit for previously owned clean vehicles from Form 8936.
• Line 13c will be used to report the elective payment election amount from Form 3800.

Credits for qualified sick and family leave wages. The credits for qualified sick and family leave wages paid in 2023 for leave taken before April 1, 2021, and for leave taken after March 31, 2021, and before October 1, 2021, are now reported on Schedule 3, line 13z. See Schedule H (Form 1040) for more information.

Alternative motor vehicle credit. The alternative motor vehicle credit has expired.

Self-employed health insurance deduction. If you can take the self-employed health insurance deduction on Schedule 1, line 17, and you can't use the Self-Employed Health Insurance Deduction Worksheet in these instructions, you will now use Form 7206, instead of Pub. 535, to figure your deduction.

Qualified charitable distribution one-time election. Beginning in 2023, you can elect to make a one-time distribution up to $50,000 from an individual retirement account to charities through a charitable remainder annuity trust, a charitable remainder unitrust, or a charitable gift annuity each of which is funded only by qualified charitable distributions. See Pub. 590-B for more information.

Increase in required minimum distribution age. If you reach age 72 in 2023, the required beginning date for your first required minimum distribution is April 1, 2025. See Pub. 590-B for more information.

Insurance premiums for retired public safety officers. Eligible retired public safety officers can exclude from income up to $3,000 of distributions from their eligible retirement plan that is paid directly to them and is used to pay for health insurance premiums. For more information, see Insurance Premiums for Retired Public Safety Officers, later.

Exception to the 10% additional tax for early distributions. The exception to the 10% additional tax for early distributions include the following.

• Distributions from a retirement plan in connection with federally declared disasters.
  
  
• Distributions from a retirement plan made to someone who is terminally ill.
  
  
• Distributions to firefighters at age 50 or with 25 years of service under the plan.
  
  

See Form 5329 and Pub. 590-B for more information.

Direct File. The IRS is taking steps to implement a Direct File pilot during the 2024 filing season. This pilot will give eligible taxpayers an option to prepare and electronically file their 2023 federal tax returns directly with the IRS for free. The Direct File pilot will be offered to eligible taxpayers in 13 states who have relatively simple tax returns reporting only certain types of income and claiming limited credits and deductions. See IRS.gov/DirectFile for pilot information and updates.

Filing Requirements

Do You Have To File?

Use Chart A, B, or C to see if you must file a return. U.S. citizens who lived in or had income from a U.S. territory should see Pub. 570. Residents of Puerto Rico can use Tax Topic 901 at https://www.irs.gov/taxtopics/tc901.html to see if they must file.

TIP: Even if you do not otherwise have to file a return, you should file one to get a refund of any federal income tax withheld. You should also file if you are eligible for any of the following credits.

• Earned income credit.
• Additional child tax credit.
• American opportunity credit.
• Credit for federal tax on fuels.
• Premium tax credit.
• Credits for sick and family leave.

See Pub. 501 for details. Also see Pub. 501 if you do not have to file but received a Form 1099-B (or substitute statement).

Requirement to reconcile advance payments of the premium tax credit. If you, your spouse with whom you are filing a joint return, or a dependent was enrolled in coverage through the Marketplace for 2023 and advance payments of the premium tax credit were made for this coverage, you must file a 2023 return and attach Form 8962. You (or whoever enrolled you) should have received Form 1095-A from the Marketplace with information about your coverage and any advance payments.

You must attach Form 8962 even if someone else enrolled you, your spouse, or your dependent. If you are a dependent who is claimed on someone else's 2023 return, you do not have to attach Form 8962.

Exception for certain children under age 19 or full-time students. If certain conditions apply, you can elect to include on your return the income of a child who was under age 19 at the end of 2023 or was a full-time student under age 24 at the end of 2023. To do so, use Form 8814. If you make this election, your child doesn't have to file a return. For details, use Tax Topic 553 at https://www.irs.gov/taxtopics/tc553.html or see Form 8814 at IRS.gov.

A child born on January 1, 2000, is considered to be age 24 at the end of 2023. Do not use Form 8814 for such a child.

Resident aliens. These rules also apply if you were a resident alien. Also, you may qualify for certain tax treaty benefits. Generally, you are a resident alien if you meet either the green card test or the substantial presence test for 2023. See Pub. 519 for details.

Nonresident aliens and dual-status aliens. These rules also apply if you were a nonresident alien or a dual-status alien and both of the following apply.

• You were married to a U.S. citizen or resident alien at the end of 2023.
  
  
• You elected to be taxed as a resident alien.

See Pub. 519 for details.

CAUTION. Specific rules apply to determine if you are a resident alien, nonresident alien, or dual-status alien. Most nonresident aliens and dual-status aliens have different filing requirements and may have to file Form 1040-NR. Pub. 519 discusses these requirements and other information to help aliens comply with U.S. tax law

When and Where Should You File?

File Form 1040 or 1040-SR by April 15, 2024. If you live in Maine or Massachusetts, you have until April 17, because of the Patriots’ Day and Emancipation Day holidays. If you file after this date, you may have to pay interest and penalties. See Interest and Penalties, in the Instructions for Form 1040 at IRS.gov.

If you were serving in, or in support of, the U.S. Armed Forces in a designated combat zone or contingency operation, you may be able to file later. See Pub. 3 for details.

If you e-file your return, there is no need to mail it. However, if you choose to mail it instead, filing instructions and addresses are at the end of the instructions for Form 1040 at IRS.gov.

TIP: The chart at the end of these instructions provides the current address for mailing your return. Use these addresses for Forms 1040 or 1040-SR filed in 2024. The address for returns filed after 2024 may be different. See IRS.gov/Form1040 for any updates.

What if You Can't File on Time?
You can get an automatic 6-month extension if, no later than the date your return is due, you file Form 4868. For details, see Form 4868. Instead of filing Form 4868, you can apply for an automatic extension by making an electronic payment by the due date of your return.

CAUTION. An automatic 6-month extension to file doesn't extend the time to pay your tax. If you don’t pay your tax by the original due date of your return, you will owe interest on the unpaid tax and may owe penalties. See Form 4868.

If you are a U.S. citizen or resident alien, you may qualify for an automatic extension of time to file without filing Form 4868. You qualify if, on the due date of your return, you meet one of the following conditions.

• You live outside the United States and Puerto Rico and your main place of business or post of duty is outside the United States and Puerto Rico.
  
  
• You are in military or naval service on duty outside the United States and Puerto Rico.

This extension gives you an extra 2 months to file and pay the tax, but interest will be charged from the original due date of the return on any unpaid tax. You must include a statement showing that you meet the requirements. If you are still unable to file your return by the end of the 2-month period, you can get an additional 4 months if, no later than June 17, 2024, you file Form 4868. This 4-month extension of time to file doesn't extend the time to pay your tax. See Form 4868.

Private Delivery Services
If you choose to mail your return, you can use certain private delivery services designated by the IRS to meet the “timely mailing treated as timely filing/paying” rule for tax returns and payments. These private delivery services include only the following.

• FedEx First Overnight, FedEx Pri-ority Overnight, FedEx Standard Overnight, FedEx 2 Day, FedEx International Next Flight Out, FedEx International Priority, FedEx International First, and FedEx International Economy.
  
  
• DHL Express 9:00, DHL Express 10:30, DHL Express 12:00, DHL Express Worldwide, DHL Express Envelope, DHL Import Express 10:30, DHL Import Express 12:00, and DHL Import Express Worldwide.
  
  
• UPS Next Day Air Early A.M., UPS Next Day Air, UPS Next Day Air Saver, UPS 2nd Day Air, UPS 2nd Day Air A.M., UPS Worldwide Express Plus, and UPS Worldwide Express.

To check for any updates to the list of designated private delivery services, go to IRS.gov/PDS. For the IRS mailing address to use if you’re using a private delivery service, go to IRS.gov/PDSStreetAddresses.

The private delivery service can tell you how to get written proof of the mailing date.

Chart A - For Most People

*If you were born on January 1, 1959, you are considered to be age 65 at the end of 2023. (If your spouse died in 2023 or if you are preparing a return for someone who died in 2023, see Pub. 501.)

**Gross income means all income you received in the form of money, goods, property, and services that isn't exempt from tax, including any income from sources outside the United States or from the sale of your main home (even if you can exclude part or all of it). Don’t include any social security benefits unless (a) you are married filing a separate return and you lived with your spouse at any time in 2023, or (b) one-half of your social security benefits plus your other gross income and any tax-exempt interest is more than $25,000 ($32,000 if married filing jointly). If (a) or (b) applies, see the instructions for lines 6a and 6b to figure the taxable part of social security benefits you must include in gross income. Gross income includes gains, but not losses, reported on Form 8949 or Schedule D. Gross income from a business means, for example, the amount on Schedule C, line 7, or Schedule F, line 9. But, in figuring gross income, don’t reduce your income by any losses, including any loss on Schedule C, line 7, or Schedule F, line 9.

***If you didn't live with your spouse at the end of 2023 (or on the date your spouse died) and your gross income was at least $5, you must file a return regardless of your age.

Chart B - For Children and Other Dependents (See Who Qualifies as Your Dependent, later.)

If your parent (or someone else) can claim you as a dependent, use this chart to see if you must file a return.

In this chart, unearned income includes taxable interest, ordinary dividends, and capital gain distributions. It also includes unemployment compensation, taxable social security benefits, pensions, annuities, and distributions of unearned income from a trust. Earned income includes salaries, wages, tips, professional fees, and taxable scholarship and fellowship grants. Gross income is the total of your unearned and earned income.

Single dependents. Were you either age 65 or older or blind?

No. You must file a return if any of the following apply.

• Your unearned income was over $1,250.
• Your earned income was over $13,850.
• Your gross income was more than the larger of -
  • $1,250, or
  • Your earned income (up to $13,450) plus $400.

Yes. You must file a return if any of the following apply.

• Your unearned income was over $3,100 ($4,950 if 65 or older and blind).
• Your earned income was over $15,700 ($17,550 if 65 or older and blind).
• Your gross income was more than the larger of -
  • $3,100 ($4,950 if 65 or older and blind), or
  • Your earned income (up to $13,450) plus $2,250 ($4,100 if 65 or older and blind).

Married dependents. Were you either age 65 or older or blind?

No. You must file a return if any of the following apply.

• Your unearned income was over $1,250.
• Your earned income was over $13,850.
• Your gross income was at least $5 and your spouse files a separate return and itemizes deductions.
• Your gross income was more than the larger of -
  • $1,250, or
  • Your earned income (up to $13,450) plus $400.

Yes. You must file a return if any of the following apply.

• Your unearned income was over $2,750 ($4,250 if 65 or older and blind).
• Your earned income was over $15,350 ($16,850 if 65 or older and blind).
• Your gross income was at least $5 and your spouse files a separate return and itemizes deductions.
• Your gross income was more than the larger of -
  • $2,750 ($4,250 if 65 or older and blind), or
  • Your earned income (up to $13,450) plus $1,900 ($3,400 if 65 or older and blind).
    
    

Chart C - Other Situations When You Must File
You must file a return if any of the six conditions below apply for 2023.

1. You owe any special taxes, including any of the following.
   1. Alternative minimum tax.
      
      
   2. Additional tax on a qualified plan, including an individual retirement arrangement (IRA), or other tax-favored account.
      
      
   3. Household employment taxes.
      
      
   4. Social security and Medicare tax on tips you didn't report to your employer or on wages you received from an employer who didn't withhold these taxes.
      
      
   5. Uncollected social security and Medicare or RRTA tax on tips you reported to your employer or on group-term life insurance and additional taxes on health savings accounts.
      
      
   6. Recapture taxes.
      
      
2. You (or your spouse, if filing jointly) received health savings account, Archer MSA, or Medicare Advantage MSA distributions.
   
   
3. You had net earnings from self-employment of at least $400.
   
   
4. You had wages of $108.28 or more from a church or qualified church-controlled organization that is exempt from employer social security and Medicare taxes.
   
   
5. Advance payments of the premium tax credit were made for you, your spouse, or a dependent who enrolled in coverage through the Marketplace. You or whoever enrolled you should have received Form(s) 1095-A showing the amount of the advance payments.
   
   
6. You are required to include amounts in income under section 965 or you have a net tax liability under section 965 that you are paying in installments under section 965(h) or deferred by making an election under section 965(i).