CashoutGlossary / Form 1040
Form 1040
The main federal income tax return, which pulls together your W-2s, tips, business profit, deductions and payments to show a refund or balance due.
Form 1040, U.S. Individual Income Tax Return, is the return most people file each year. Your 2026 return is due April 15, 2027. The lines tipped workers use most, from the 2026 draft:
- Line 1a: the total from W-2 box 1, your wages plus reported tips
- Line 1c: tip income not on line 1a, such as unreported or allocated tips from Form 4137
- Line 8: additional income from Schedule 1, including Schedule C profit
- Line 10: adjustments from Schedule 1, such as half of self-employment tax
- Line 11a: adjusted gross income
- Line 12e: the standard deduction or itemized deductions
- Line 13a: Schedule 1-A deductions, including No Tax on Tips and overtime
- Line 23: other taxes from Schedule 2, including self-employment tax
- Lines 25a to 25d and 26: tax withheld and 2026 estimated payments
Line 13a comes after line 11a, so the tips deduction lowers your taxable income but not your adjusted gross income.
Common mistake: going by last year's line numbers. The Schedule 1-A total was line 13b on the 2025 form and is line 13a on the 2026 draft. The 2026 form is still a draft as of October 2026, so check the final form and instructions when you file.
Related terms
Schedule 1-A · Schedule C · Form 4137 · Standard deduction · Form W-2
