About 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.