What is Form 1040a

The 1040A is a simpler version of Form 1040. You can use it if you meet the 1040A requirements, which are less complex than those for a 1040. If you’re filing a paper return and meet the requirements, using the simpler 1040A reduces the chance for both:

• Costly errors
• A delay in processing your return

Your taxable income must be less than $100,000 to use the 1040A. Also, your income can only come from these sources:

• Wages, salaries, and tips
• Interest and dividends
• Capital gain distributions
• Taxable scholarship and fellowship grants
• Pensions, annuities, and IRAs
• Unemployment compensation
• Taxable Social Security and railroad retirement benefits
• Alaska Permanent Fund dividends

You can claim these adjustments to income on a 1040A:

• IRA deduction
• Student-loan interest deduction

You can only claim these credits:

• Child tax credit
• Additional child tax credit
• Education credits
• Earned Income Credit (EIC)
• Credit for child- and dependent-care expenses
• Credit for the elderly or the disabled
• Retirement savings contributions credit

You can also use a 1040A if any of these are true:

• You receive dependent-care benefits.
• You owe tax from the recapture of an education credit or the Alternative Minimum Tax (AMT).
• You received the advance premium tax credit.

Restrictions for using a 1040A include:

• You can’t itemize deductions. So, you can’t deduct charitable donations or mortgage interest paid.
• You can’t claim an AMT adjustment on stock you got from exercising an incentive stock option.