1040 Parser: Extract Income Data from Tax Returns

Mortgage lenders need tax returns for income verification. The underwriter needs AGI from line 11, wages from line 1, and self-employment income from Schedule C. But tax returns are complex documents, and extracting data manually is slow and error-prone.

We built 1040 Parser to automate income verification.

The Mortgage Underwriting Problem

Tax returns are the gold standard for income verification. But they're also:

2+ pages for the basic 1040
Additional schedules for business income, rental income, capital gains
Different layouts every year as the IRS tweaks the form
Often submitted as scanned images or photos

Underwriters spend significant time manually extracting numbers. Typos happen. Key schedules get missed. And the whole process slows down loan closings.

How 1040 Parser Works

Upload the tax return - 1040, schedules, any year 2020 onward
AI extracts all relevant fields - Income lines, deductions, credits, refund/owed
Get structured data - Ready for your underwriting system

What We Extract

Basic Information: - Tax year - Filing status (Single, MFJ, MFS, HoH, QW) - Taxpayer name and last 4 of SSN - Spouse name and last 4 (if applicable)

Income Lines: - Line 1: Wages, salaries, tips - Line 2a/2b: Tax-exempt and taxable interest - Line 3a/3b: Qualified and ordinary dividends - Line 4a/4b: IRA distributions (total and taxable) - Line 5a/5b: Pensions and annuities - Line 6a/6b: Social Security benefits - Line 7: Capital gain or loss - Line 8: Other income from Schedule 1 - Line 9: Total income - Line 11: Adjusted Gross Income (AGI) - the key number

Deductions: - Line 12: Standard or itemized deduction - Line 13: QBI deduction - Line 15: Taxable income

Tax & Payments: - Line 16: Tax - Line 24: Total tax - Line 25: Total payments and withholding - Line 34: Overpayment (refund) - Line 37: Amount owed

Schedule Support: We also extract data from common schedules: - Schedule C: Business income/loss - Schedule D: Capital gains - Schedule E: Rental income - Schedule SE: Self-employment tax

Use Cases

Mortgage Lenders: Automate income verification. Extract the exact lines you need for Fannie Mae, Freddie Mac, and FHA guidelines.

Personal Lenders: Verify borrower income for personal loans, auto loans, and credit decisions.

Accountants: Import prior-year data for comparison. Verify e-filed returns against client documents.

Financial Planners: Extract income data for financial planning and projections.

Developers: Build lending software with built-in tax return parsing.

API Example

curl -X POST https://1040parser.com/api/extract \
  -F "file=@2025-tax-return.pdf"

{
  "tax_year": 2025,
  "filing_status": "Married Filing Jointly",
  "taxpayer_name": "John Smith",
  "taxpayer_ssn_last4": "1234",
  "spouse_name": "Jane Smith",
  "spouse_ssn_last4": "5678",
  "line1_wages": 125000.00,
  "line2b_taxable_interest": 1250.00,
  "line3b_ordinary_dividends": 3500.00,
  "line7_capital_gain_loss": 5000.00,
  "line9_total_income": 134750.00,
  "line11_agi": 131250.00,
  "line12_standard_or_itemized": 29200.00,
  "line15_taxable_income": 102050.00,
  "line16_tax": 14500.00,
  "line24_total_tax": 14500.00,
  "line25a_w2_withholding": 18000.00,
  "line34_overpaid": 3500.00,
  "line35a_refund": 3500.00,
  "schedules": {
    "schedule_c": {
      "gross_income": 45000.00,
      "expenses": 12000.00,
      "net_profit": 33000.00
    }
  }
}

Multi-Year Processing

Mortgage underwriting often requires 2 years of returns. Upload both at once:

curl -X POST https://1040parser.com/api/extract/batch \
  -F "files=@2024-return.pdf" \
  -F "files=@2025-return.pdf"

Get back separate extractions for each year, making it easy to compare income trends.

Supported Forms

Form 1040 (standard)
Form 1040-SR (seniors)
Form 1040-NR (non-residents)
Schedule 1 (Additional Income)
Schedule 2 (Additional Taxes)
Schedule 3 (Additional Credits)
Schedule A (Itemized Deductions)
Schedule B (Interest and Dividends)
Schedule C (Business Income)
Schedule D (Capital Gains)
Schedule E (Rental Income)
Schedule SE (Self-Employment)

Pricing

Free: 3 returns
Starter: 10 returns for $15
Pro: 50 returns for $49
Business: 200 returns for $149
Enterprise: Contact us for volume pricing

Security

Tax returns are highly sensitive:

Documents processed and deleted immediately
SSNs masked to last 4 digits in output
SSL encryption for all transfers
No permanent data storage
SOC 2 compliant infrastructure

Get Started

Stop manually extracting tax return data. Try 1040 Parser free and verify income in seconds.

Questions? Contact support@1040parser.com.