What Was Form 1040-A (U.S. Individual Tax Return)?
Form 1040-A was a shortened, two-page version of the standard U.S. individual income tax return (Form 1040). It gave taxpayers with relatively simple financial situations a way to report income, claim a limited set of deductions and tax credits, and compute their federal income tax without the additional schedules required for the full Form 1040. Form 1040-A was eliminated beginning with the 2018 tax year when the IRS redesigned Form 1040.
Key definitions
– Form 1040: The full U.S. individual income tax return used by most taxpayers, especially those with complex income, itemized deductions, or many credits.
– Standard deduction: A flat-dollar reduction of taxable income available to most filers that replaces itemized deductions if the filer prefers it.
– Itemized deductions: Specific deductible expenses (mortgage interest, charitable contributions, medical expenses above thresholds, etc.) reported on Schedule A and used instead of the standard deduction when larger.
– Tax credit: A dollar-for-dollar reduction of tax liability (for example, the Earned Income Credit or child tax credit).
– Taxable income: Gross income minus allowable adjustments and deductions; used to compute owed tax.
Who could use Form 1040-A
To be eligible to file on Form 1040-A a taxpayer generally had to meet limits on both the types and amounts of income and on allowable tax items. Principal constraints included:
– Taxable income under $100,000.
– No business income (self-employment) or other disallowed income types (for example, exercising incentive stock options).
– Income limited to common sources such as wages, salaries, tips, taxable interest, ordinary dividends, capital gain distributions, taxable Social Security, pensions and annuities, unemployment compensation, taxable scholarships/grants, and Alaska Permanent Fund dividends.
– No itemized deductions (only certain adjustments/deductions were allowed).
– Filing statuses allowed: single, head of household, married filing jointly, married filing separately, or qualifying widow(er).
If you did not meet these constraints, you generally had to use the full Form 1040 (or another appropriate return).
What Form 1040-A allowed — income, deductions, and credits
Income reported: ordinary income categories listed above (wages, salaries, taxable interest and dividends, capital gains distributions, certain retirement and Social Security amounts, unemployment, etc.).
Deductions (available on Form 1040-A):
– Student loan interest deduction (adjustment to income).
– Tuition and fees deduction (when available under law).
– Educator expenses (classroom expenses) in applicable years.
– Contributions to traditional IRAs (subject to limits and income phaseouts).
Deductions not allowed:
– Itemized deductions (mortgage interest, charitable gifts claimed on Schedule A, large medical expenses above threshold, etc.)—if you wanted those you had to file Form 1040.
Tax credits available on Form 1040-A:
– American Opportunity Tax Credit (AOTC).
– Earned Income Credit (EITC).
– Child tax credit and additional child tax credit.
– Child and dependent care credit.
– Credit for the elderly or the disabled.
– Retirement savings contributions credit (Saver’s Credit).
How Form 1040-A differed from Form 1040-EZ and Form 1040
– Form 1040-EZ (the simplest of the three prior to 2018) was smaller in scope than 1040-A. It was limited to single filers or married filing jointly, did not permit deductions (other than the standard deduction), and generally allowed only the EITC among credits.
– Form 1040-A was broader than 1040-EZ: it allowed more filing statuses, permitted a small set of adjustments and several credits, and accepted certain income types that 1040-EZ did not.
– Form 1040 (the full form) supported itemized deductions, more complex income situations (business income, rental income, significant capital transactions), and many additional credits and schedules. It was the form for taxpayers with complex returns or incomes above the 1040-A limits.
Why Form 1040-A was discontinued
In the 2018 tax year the IRS redesigned Form 1040 to be simpler and modular. As part of that change the agency eliminated both Forms 1040-A and 1040-EZ, consolidating most filers onto the redesigned Form 1040 with additional schedules for specific items. The intent was to simplify filing and reduce confusion about which short form to use.
Checklist: Was Form 1040-A the right form for you (pre-2018)?
– Taxable income less than $100,000? Yes / No
– No business or self-employment income? Yes / No
– No incentive stock option (ISO) income? Yes / No
– Income limited to wages/salary, interest, dividends, capital gains distributions, taxable retirement/Social Security, unemployment, taxable scholarships/grants, and similar? Yes / No
– Want to claim only student loan interest, tuition and fees deduction, educator expenses, or IRA contributions as adjustments? Yes / No
– Want to claim credits such as AOTC, EITC, child tax credit, child and dependent care credit, credit for elderly/disabled, or Saver’s Credit? Yes / No
If you answered “Yes” to all relevant items above, 1040-A would have been an option prior to 2018; otherwise you needed Form 1040.
Simple worked numeric example (illustrative)
Assumptions (pre-2018 rules):
– Gross wages: $50,000
– Taxable interest: $500
– Student loan interest deduction allowed: $1,000 (an adjustment to income)
– Traditional IRA contribution deduction: $2,000
– No itemized deductions, no business income
Step 1 — Compute adjusted gross income (AGI):
AGI = (Wages + Interest) − Adjustments
AGI = ($50,000 + $500) − ($1,000 + $2,000) = $50,500 − $3,000 = $47,500
Step 2 — Subtract standard deduction (filing status matters; example uses single)
(For illustration only; 2017 standard deduction for a single filer was $6,350.)
Taxable income = AGI − Standard deduction
Taxable income = $47,500 − $6,350 = $41,150
Step 3 — Claim any applicable tax credits (for example, none assumed here) and compute tax on $41,150 using tax tables or rates applicable to the tax year.
Notes: This example shows how 1040-A allowed certain adjustments (student loan interest, IRA deduction) but did not permit itemized deductions. Exact standard deduction amounts and tax rates vary by year.
Practical takeaway
Form 1040-A served taxpayers with straightforward incomes who needed a bit more flexibility than Form 1040-EZ but did not require the complexity of the full Form 1040. Starting with the 2018 tax year, taxpayers instead use the redesigned Form 1040 and any applicable schedules to report similar items.
Selected references
– Internal Revenue Service — “About Form 1040: U.S. Individual Income Tax Return.” https://www.irs.gov/forms-pubs/about-form-1040
– Internal Revenue Service — “Questions and Answers about the 2018 Form 1040.” https://www.irs.gov/newsroom/questions-and-answers-about-the-2018-form-1040
– Investopedia — “Form 1040-A.” https://www.investopedia.com/terms/1/1040a.asp
Educational disclaimer
This article is for general educational purposes only and does not constitute tax advice. For guidance specific to your tax situation, consult a qualified tax professional or the IRS.