Question

During the current year, Doris received a large gift from her parents and a sizeable inheritance from an uncle. She also paid premiums on an insurance policy on her life. Doris is confused because she cannot find any place on Form 1040 to report these items. Explain.

Answer 1

Form 1040 is an IRS tax form used for personal federal income tax returns filed by United States residents. The form calculates the total taxable income of the taxpayer and determines how much is to be paid or refunded by the government.

Income tax returns for individual calendar year taxpayers are due by Tax Day, which is usually April 15 of the next year, except when April 15 falls on a Saturday, Sunday, or a legal holiday. In those circumstances, the returns are due on the next business day.

Everyone who earns income over a certain threshold must file an income tax return with the IRS (businesses have different forms to report their profits).

She can fill the dependents coloumn with Social security number and relationship details, whatever avaiable . She got confused because there is no space to fill in details for premiuns on insurance policies paid.