1040A Form

Form 1040-A: Overview

Form 1040-A was a simplified U.S. individual income tax return formerly offered by the IRS as an alternative to the standard Form 1040. It allowed taxpayers with relatively simple tax situations to report income, claim a limited set of deductions, and take certain tax credits on a shorter, two-page form. The form was eliminated beginning with the 2018 tax year when the IRS introduced a redesigned Form 1040.

Key points

• Designed for taxpayers with simpler returns and taxable income under $100,000.
• Could not be used by taxpayers who exercised incentive stock options (ISOs) or who had certain types of income (e.g., business income).
• Allowed a limited set of deductions and several common credits.
• Eliminated for 2018 when the IRS replaced Forms 1040, 1040-A, and 1040-EZ with a single redesigned Form 1040.

Who could use Form 1040-A?

Taxpayers who met these conditions could use Form 1040-A:

• Taxable income less than $100,000.
• No exercise of incentive stock options (ISOs) during the tax year.
• No business income (including sole proprietorship income).
• Filed as single, married filing jointly, married filing separately, head of household, or qualifying widow(er).
• Income came from allowable sources (see below).

Income types allowed on Form 1040-A

Reportable income types included:

• Wages, salaries, and tips
• Taxable interest and dividends
• Capital gains
• Unemployment compensation
• Taxable Social Security and railroad retirement benefits
• Pensions and annuities
• Taxable scholarships and grants
• Alaska Permanent Fund dividends

Income beyond these types—such as business or certain partnership/rental income—required the full Form 1040.

Deductions permitted

Form 1040-A filers could claim only specific adjustments to income; itemized deductions were not allowed. Typical allowable deductions included:

• Student loan interest
• Tuition and fees (qualified education adjustments available at the time)
• Educator (classroom) expenses
• Traditional IRA contributions

If a taxpayer had itemized deductions (e.g., large mortgage interest or charitable contributions) that exceeded the standard deduction, Form 1040-A would not be advantageous.

Credits allowed

Several important tax credits could be claimed on Form 1040-A, including:

• Earned Income Tax Credit (EITC)
• American Opportunity Tax Credit (AOTC)
• Child tax credit and additional child tax credit
• Child and dependent care credit
• Credit for the elderly or the disabled
• Retirement savings contributions credit

Comparison with Form 1040-EZ and Form 1040

• Form 1040-EZ was an even simpler short form limited to single or married filing jointly taxpayers with very basic income types; it allowed very few credits or deductions and was also eliminated for 2018.
• Form 1040 (the full form) accommodated complex situations: itemized deductions, business income, multiple credits, and higher-income filers. Taxpayers with more complex returns had to use Form 1040 rather than 1040-A.

What changed after 2018

Starting with the 2018 tax year, the IRS replaced Forms 1040-A and 1040-EZ with a redesigned Form 1040 intended to simplify filing. The redesigned form consolidates filing options and accommodates both simple and more complex tax situations through schedules and supplemental forms.