How it works
Form 1040 is the parent return; schedules attach for specific items. Schedule 1 carries additional income and adjustments (including most staking and reward income), Schedule B interest and dividends and the foreign account question, Schedule C self-employment, Schedule D capital gains, and Schedule SE self-employment tax. Since 2019 the form has asked the digital asset question near the top. It is due April 15, with a six-month filing extension available on Form 4868 that does not extend the payment deadline.
Why it matters
The signature line makes every entry, including the yes-or-no answers, a statement under penalty of perjury. The IRS matches the return against every third-party form it received, so the return has to reconcile with them.
Related: digital asset question, Schedule D, Form 4868.
