Form 1040-SS (2023)

What is Form 1040-SS

Form 1040-SS, brought to you by the Internal Revenue Service (IRS), is intended for residents of U.S. territories who are not required to file the regular Form 1040. This form allows you to report your income, calculate your tax liability, and claim credits that may apply to you. 

Residents of Puerto Rico, American Samoa, the U.S. Virgin Islands, Guam, and the Commonwealth of the Northern Mariana Islands typically use this form to file their federal income tax returns.

Who Needs to File IRS Form 1040-SS

IRS Form 1040-SS is designed for:

• Residents of U.S. territories mentioned above.
• Self-employed individuals in these territories.
• Those who have to pay self-employment tax don't need to file Form 1040, the standard tax return form for U.S. citizens and residents.

If you are in one of these categories, the 1040 SS tax form is the correct form for you to file.

Components of the 1040 SS Form

Form 1040-SS consists of various parts, including:

• Part I: Information about the taxpayer, such as name, address, and Social Security Number (SSN).
• Part II: Income details, including wages, salaries, and tips.
• Part III: Figuring the amount of self-employment tax.
• Part IV: Calculation of the Additional Child Tax Credit, if applicable.
• Part V: Summary of your total tax liability and the refund or amount you owe.

How to Prepare IRS 1040 SS Form

Here is a step-by-step guide to help you prepare IRS 1040 SS Form:

Step 1: Before you sit down to fill out the form, make sure you have all the necessary documents, including your W-2, any 1099 forms, and records of additional income and deductions.

Step 2: Fill out your personal information in Part I. This is straightforward, as it mainly asks for your name, address, and SSN.

Step 3: Part II requires you to list your income sources. If you are self-employed, you will also need to calculate your net earnings from self-employment in Part III.

Step 4: If applicable, calculate your self-employment tax in Part III. The IRS provides specific guidelines and tables to assist in this calculation.

Step 5: In Part IV, you can claim any eligible credits, such as the Additional Child Tax Credit.

Step 6: Complete Part V, summarizing your tax liability. This will give you the total tax you owe or the refund you are entitled to receive.

Step 7: After you have filled out the form, make sure to sign and date it. You can then mail it to the IRS or, in some cases, file it electronically.