2026 General Financial Literacy State Practice Test – Complete Exam Prep

Form 1040 is the document individuals use to file their annual federal income tax returns. It lets you report all sources of income, deductions, and credits, calculate your tax liability, and determine whether you owe more tax or are due a refund. The different forms have other purposes: a W-2 is a wage and tax statement from an employer showing how much you earned and how much tax was withheld; a W-4 is filled out by the employee to tell employers how much tax to withhold from each paycheck; and an I-9 is used to verify your identity and eligibility to work in the U.S. Form 1040 is specifically the return you submit to report your income and taxes for the year.