The "2026" part trips people up too. Tax year 2025 returns were filed during 2026. Tax year 2026 returns will generally be filed in 2027, and the IRS has only published draft 2026 forms so far. This guide shows how to identify the right federal form, state form, schedules and official sources, with notes for Australian taxpayers who have US filing connections.
Key Takeaways
- State returns are separate from IRS Form 1040 and differ by state.
- Your forms depend on status, income, deductions, residency and business activity.
- Confirm tax year versus filing year before you start.
- Use the IRS and your state tax agency as the primary sources.
Understanding Form 1040 and State Tax Forms
What Form 1040 does
IRS guidance describes Form 1040 as the annual individual income tax return. It reports income, adjustments, deductions, credits, tax, payments, and the refund or balance due. Schedules attach when your circumstances call for them.
Form 1040-SR is an optional alternative for taxpayers aged 65 or older. It uses the same schedules and instructions, so the reporting requirements are substantially the same.
What a state income tax return does
A state return calculates liability under that state's own law. Definitions of income, deductions, credits and filing thresholds can differ from the federal return.
Not every state taxes individual income. The Tax Foundation's 2026 table lists Alaska, Florida, Nevada, New Hampshire, South Dakota, Tennessee, Texas and Wyoming as having no general individual income tax. Even so, other obligations can apply. Washington, for instance, taxes certain capital gains, and New York City and Yonkers impose local income tax on residents.
Australian and cross-border context
An Australian resident, business owner or investor with US-source income or US activities must assess US federal and state obligations separately from Australian ones. The US-Australia tax treaty exists, but whether it helps a specific taxpayer depends on their facts.
Don't assume an Australian address settles your state position. States look at domicile, presence and income source instead. Identify your US residence, work, property, business or income connection, and get professional advice on treaty, residency, withholding or dual-country questions.
Which 2026 Forms and Schedules May Apply
Start with the correct US federal return
Check the current IRS Form 1040 and its instructions for your tax year. Most individual returns start there, but filing status and extra schedules depend on your situation.
Factors that decide which forms you need:
- Wages and self-employment income
- Interest, dividends and capital gains
- Rental or royalty income
- Retirement distributions
- Foreign income or foreign taxes
- Dependants and education costs
- Healthcare coverage
- Charitable giving and itemised deductions
Common schedules and supporting forms
| Form | Purpose |
|---|---|
| Schedule 1 | Additional income and adjustments |
| Schedule A | Itemised deductions |
| Schedule B | Interest and ordinary dividends |
| Schedule C | Sole-proprietor profit or loss |
| Schedule D and Form 8949 | Capital gains and losses |
| Schedule E | Rental, royalty and pass-through income |
| Schedule SE | Self-employment tax |
Other forms calculate specific items first, such as Form 1116 for the foreign tax credit, before results flow onto the 1040. The official instructions set exact eligibility and attachment rules.
US state forms and attachments
US state return names rarely resemble Form 1040. These are tax year 2025 examples:
| State | Resident | Nonresident / part-year |
|---|---|---|
| California | Form 540 | Form 540NR |
| New York | IT-201 | IT-203 |
| Pennsylvania | PA-40 | PA-40 (status selected on form) |
| Illinois | IL-1040 | Schedule NR |
Consider two people. One has only wages and may need a simple US federal return and one state form. Another has freelance income, rental property and income from two US states, and may need several schedules plus multiple state returns.
These examples show how complexity scales. They do not set anyone’s actual filing requirement.
How to Find the Correct 2026 Forms and Instructions
Use official federal sources first
Start with the IRS Forms, Instructions & Publications page and the About Form 1040 page. Prior-year forms sit in the IRS archive.
Check the revision year on every download. The IRS has published a 2026 Form 1040 draft marked "do not file", and warns against relying on drafts. Final 2026 forms may not all appear at the same time.
Locate the relevant state forms
Go to the state's official tax or revenue department site. The Federation of Tax Administrators keeps a directory of state agencies. Look for sections labelled:
- Individual income tax
- Current-year forms and instructions
- Nonresident and part-year resident returns
- Pass-through or business schedules
If you moved, worked across state lines or earned income in several states, you may need more than one return. Some states offer credits for tax paid to another state, such as New York's IT-112-R.
Verify filing methods and deadlines
Check each of these for both federal and state returns:
- Whether you can e-file or must file on paper
- Where payments go
- Whether an extension covers only filing time or payment too
For example, Form 4868 extends time to file, not time to pay. Taxpayers abroad may get different dates. US citizens and resident aliens living abroad generally get an automatic extension to 15 June for the prior year's return, and some nonresident alien returns have a June due date.
Deadlines, thresholds, e-file rules and form availability change. Verify them for your tax year and state before you file.
When professional review is appropriate
Review helps most when your situation involves:
- US-source income or filings across multiple states
- Foreign tax credits or treaty questions
- Entity income or self-employment
- Uncertain residency status
VJM Global prepares Form 1040 and 1040-NR returns, and supports federal and state filings for international clients, including Australian businesses with US obligations. Its team works with US tax software and handles documents under encryption and multi-factor access controls.
Confirm scope and pricing for your situation directly.
A Practical Process for Completing Federal and State Returns
Gather source documents before choosing schedules
Collect what applies to you:
- W-2 and 1099 forms (NEC, INT, DIV, MISC, B)
- Brokerage and bank statements
- Business income and expense records
- Rental and retirement statements
- Deduction and credit evidence, such as mortgage and property-tax records
- Prior-year returns and taxpayer identification details
- Banking details for refunds
- Records of foreign income and foreign tax paid
Documents don't tell the whole story. Some income arrives with no form, and it can still be reportable. If a W-2 or 1099-R is missing, the IRS says to estimate and use Form 4852.
Determine your federal filing position
Settle filing status, dependants, residency or citizenship facts and income categories. Then decide between the standard deduction and itemising. The IRS says itemising on Schedule A can help when itemised deductions exceed the standard deduction. Check IRS Publication 501 for current thresholds.
Federal figures often feed a state return, but states add their own adjustments, additions, subtractions and credits. California, for example, conforms to the federal code only with modifications.
Determine state obligations
Work through this sequence:
- Were you a US state resident for the full year or part of it?
- Did you earn income in a state where you weren't resident?
- Did you perform work in a state?
- Do you own real property or pass-through interests there?
- Do other state-specific connections apply?
Australian residence alone doesn't remove a possible US state obligation. A state may also require a return when no federal return is due. New York's guidance includes a state-specific income test for some people who weren't required to file federally.
Review, submit and retain records
Before submitting, confirm:
- Correct tax year
- Accurate taxpayer details
- Right state selection
- All schedules and supporting documents
- Signatures and payment or direct-deposit details
- E-file acceptance or mailing proof
Keep returns, confirmations, payment evidence and correspondence. The IRS generally says keep records for three years, longer in cases such as under-reported income (six years) or no return filed. Check your state's own retention rules.
Common Mistakes and When to Seek Help
Watch for these errors:
- Downloading an outdated form that ranks in search results
- Confusing tax year with filing year
- Using a federal form instead of a state return
- Choosing the wrong residency category
- Assuming a no-income-tax state means no filing obligations
Form 1040-EZ is discontinued for tax year 2018 onward. Use Form 1040 or 1040-SR, not old 1040-EZ instructions.
Small filing errors still generate heavy IRS follow-up. The National Taxpayer Advocate reported about 4 million notices by April 2026 for returns with missing or incorrect direct-deposit information.
Seek professional support for:
- Multi-state income or uncertain state nexus
- Foreign tax credits (Form 1116) and foreign account reporting (Form 8938, FBAR)
- Australia-US residency or treaty issues
- Self-employment, rental or investment income
- Entity distributions, amended returns (Form 1040-X) or IRS notices
VJM Global assists with Form 1040 and 1040-NR preparation, foreign tax credit alignment and IRS notice responses. Scope and pricing are quoted per engagement.
Frequently Asked Questions
Should I use 1040 or 1040EZ?
Use the current Form 1040 or 1040-SR. Form 1040-EZ was discontinued for tax year 2018 and later.
What are state and local taxes?
They are taxes imposed by states and municipalities, such as income, sales and property taxes. Rules, filing requirements and deductibility vary by jurisdiction.
Where can I find IRS Form 1040?
Use the IRS Forms, Instructions & Publications page or the About Form 1040 page. Select the correct tax year and check the revision date.
Do I need to file a state tax return with Form 1040?
It depends on your state, residence, income, work and property connections. A federal Form 1040 doesn't replace a state return.
Which state tax form should I use for 2026?
It depends on the state and whether you're a resident, part-year resident or nonresident. Use that state's official tax agency site for the current form.
What documents do I need to complete Form 1040 and my state return?
Typically W-2s, 1099s, deduction and credit records, identification details, prior-year returns and any state-specific documents. Requirements vary by taxpayer.
