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Form 1040A
Description
Form 1040A is easier to use than Form 1040, but can only be used if the following requirements are met:
- You only had income from wages, salaries, tips, interest and ordinary dividends, capital gain distributions, taxable scholarships and fellowship grants, pensions, annuities and IRAs, unemployment compensation, taxable social security and railroad retirement benefits, and Alaska Permanent Fund dividends.
- The only adjustments to income you can claim are educator expenses, IRA deduction, student loan interest deduction, and tuition and fees deduction.
- You do not itemize deductions.
- Your taxable income is less than $100,000.
- The only tax credits you can claim are the child tax credit, additional child tax credit, education credits, earned income credit, child and dependent care expenses credit, elderly or disabled credit, adoption credit and the retirement savings contributions credit.
Form 1040A Tax Tips
- If you had a baby last year, you need to get a Social Security number for your child before you file your tax return. The IRS will not allow you to claim a dependency exemption, the Earned Income Credit, or Head of Household filing status without a valid Social Security number.
- Don't file as "Single" if you qualify to file as "Head of Household". You will get a bigger refund if you file as Head of Household. If your ex-spouse claims your child as a dependent on his or her tax return, but the child lives with you, then you probably can still file as Head of Household. Also, if you can claim a parent, grandparent, nephew, niece, brother or sister as a dependent on your tax return you can probably file as Head of Household.
- Even if you received Form 1040A in the mail because you filed a Form 1040A last year, you can still file Form 1040 if your situation has changed this year. If you have itemized deductions or adjustments to income such as moving expenses, you should look to see if filing Form 1040 instead of Form 1040A will save you taxes.
- If you have capital gain distributions, you will save taxes by using the capital gain worksheet found in the IRS 1040A instructions instead of using the regular tax rate schedule.
How To Avoid Common Mistakes
- Enter the correct name and social security number for yourself, spouse, and dependents.
- Double check your math.
- If you have a capital gain distribution or qualified dividends, you will save money by calculating your tax using the worksheet in the 1040A instructions instead of the regular tax table.
- Remember to sign and date Form 1040A and enter your occupation.
- Attach your W-2 form(s) to the left margin of Form 1040A (one or two staples attaching the W-2s to the left margin works well).
- If you owe tax and are paying by check or money order, make your check or money order payable to "United States Treasury". Do not attach the payment to the return. Write your Social Security Number and "2002 Form 1040A" on the check or money order. Make sure your name, current address and daytime phone number are also on the check or money order.
