What is the primary use of Form 1040?

Form 1040 is primarily used by individual taxpayers to report their annual income, calculating their taxable income and determining the amount of tax owed or any refund due. This form is essential for individuals as it captures a range of income sources—such as wages, dividends, capital gains, and business income—allowing them to itemize deductions and tax credits to arrive at their final tax liability.

While the other options relate to specific tax situations or additional forms, they do not encompass the primary function of Form 1040. For instance, it is not specifically designed for reporting business income taxes (which may use Schedule C for sole proprietors), nor does it fulfill the role of filing for an extension (which is done via Form 4868). Additionally, while the form ultimately helps in claiming refunds on overpaid taxes as a result of the submitted calculations, this aspect is not its primary purpose. Instead, the core role of Form 1040 is to provide a comprehensive platform for individuals to report their income and calculate their tax liabilities.