A Comprehensive Guide on How to Fill Out Form 1040A
As the tax season approaches, taxpayers start to find information on how to fill out Form 1040A. They must file their income tax return with the help of 1040A tax return forms. Every season, taxpayers, such as the working and self-employed populations, submit the IRS form 1040A, quoting the taxes for their income. However, the taxpayers don’t find it quite easy for the first time as the instructions for form 1040A can be quite complex to understand.
When you get started with IRS form 1040A, you should know the required information and the right procedure. In this blog, we will briefly explain what a 1040A form is and guide you on how to fill out form 1040A. Moreover, we will elaborate on documenting your earnings, categorizing eligible deductions and credits, and calculating the net income and taxes.
Therefore, let’s get started with in-depth instructions for Form 1040A for the IRS.
Getting Started with IRS Form 1040A
In this section, we seek to answer some essential questions to get you started with the basics of IRS Form 1040A.
- What is a 1040A form?
- How to fill out form 1040A?
- How to file form 1040A?
- Difference between 1040 and 1040A.
Let us first see what IRS Form 1040A is.
1. What is a 1040A Form?
You might also know the IRS 1040A form as the U.S. Individual Income Tax Return. The taxpayers use the 1040A form to report their individual taxes and to claim the eligible deductions or credits. The 1040A form also summarizes the tax bill or refund for the financial year. The 1040A form is a specialized 1040 form that itemizes deductions instead of following the standard format.
The income in the 1040A form includes details like wages, salary, social security benefits, pensions, capital gains, taxable interest, and additional income. Moreover, the form includes annual health coverage, contributions to the presidential campaign funds, and the number of dependents.
However, it should be noted that not everyone is required to file income tax returns. The individuals who earn more than a threshold margin need to file the tax form 1040A.
2. Who Needs to file the IRS Form 1040A?
The Internal Revenue Service has specific guidelines on who needs to file tax returns. This includes Individuals who:
- Are citizens of the United States or permanent residents?
- Work in the United States.
- Earn more than or equal to the minimum threshold amount.
- If your income sources are listed in the form 1040A.
If your income sources are diverse and include income from businesses like professional accounting services or convenience stores, they might not be listed in the form 1040A. You might need to fill in the form 1040 for that.
3. Where to Find the Form 1040A?
The IRS provides Form 1040A. However, there are various ways to access the 1040A form.
- The IRS free fillable forms are out there from the mid of January to the mid of October.
- You can call 800-829-3676 from Monday through Friday, 7 a.m. to 10 p.m. local time.
- You can also get copies of the form by attending the IRS Taxpayer Assistance Center with an appointment.
- Accounting and tax preparation software like TaxAct and TurboTax can also help you to get the 1040A.
Once you access the form, you need to understand how to fill out form 1040A.
4. What is the Difference Between 1040 and 1040A?
The 1040, 1040A, and 1040EZ are three types of IRS tax return forms you can file to report your taxes. The difference between 1040 and 1040A forms is that the 1040A form is less detailed than the 1040 form. However, to use the IRS Form 1040A, you need to:
- Earn a taxable income equal to less than USD 100,000.
- Instead of itemizing, claim the standard deductions.
- Report limited types of income.
Sections in a 1040A Form
The 1040A form is slightly different from the more common 1040 form. Here are the different sections that you should know about before we discuss how to fill out Form 1040A.
1. Gross Income
The 1040A form has the option to report only some types of income, such as
- Salaries,
- Wages and tips,
- Capital gains,
- Interest and dividend incomes,
- Pension and annuity distributions,
- Alaska permanent fund dividends
- Unemployment compensation
- Social Security benefits
However, other types of income cannot be reported in the IRS Form 1040A. If you have other income sources, such as a sole proprietorship business, you need to file the 1040 form.
2. Deductions
In addition to the income, the form 1040A also allows you to list and claim the deductions. These adjustments or deductions can be:
- IRA contributions,
- Student loan interest
- Educator expenses
- Tuition payments
3. Taxable Income
The second page of Form 1040A allows you to make the eligible adjustments to the gross net income. By applying the deductions to the gross net income, you arrive at the taxable income. After you know the taxable income, you can calculate the taxes you should pay.
4. Tax Credits
After calculating the taxes, you can claim some tax credits, like:
- Child and dependent care expenses
- Education tax credits
- Child tax credit
- The credit for the elderly or disabled
5. Tax Bill
The tax bill is the net amount you will need to pay, deducing the tax credits, tax payments, and withholding. Therefore, the tax bill is less than the tax calculated in the last step.
Learn How to fill out form 1040A
In this section on how to fill out form 1040A, we will list out the steps to make completing the form 1040A easier. Follow the steps below one by one to fill out the IRS form 1040A.
1. Gather All Your Tax Documents
Before you proceed with the tax form, collect all the documents you will need, such as records of your income and deductions, your W-2s, 1099s, etc. You will need them in the steps to come.
2. Fill Out the Basic Information
Start with filling out the basic information such as your identification, contact information, filing status, and dependents. For the details of individuals, enter every name as it appears on the Social Security Cards and not a nickname. This ensures that your tax returns don’t get rejected for electronic filing or face troubles like processing delays for paper returns.
3. Fill in the Gross Income
The part to come allows you to report the different types of income. In this section, fill out the income from:
- Salaries
- Wages and tips
- Capital gains
- Interest and dividend incomes
- Pension and annuity distributions
- Alaska permanent fund dividends
- Unemployment compensation
- Social Security benefits
If you have income from other sources not listed in the 1040A form, you might need to file the 1040 form. The total income will be your net gross income.
4. Report the Deductions
This is the section where you can make adjustments to the gross income to arrive at the net taxable income.
- Deductible moving expenses.
- The health savings account deduction.
- Deductible health insurance expenses.
- Student loan interest.
- Deductible retirement contributions.
These are some deductions that you can claim and make these adjustments to your net gross income. You will need to attach the required documents to claim these deductions.
5. Make the Tax Calculations
Your tax depends on the net taxable income, which is the amount you get after subtracting deductions or adjustments from the gross income. This is called the Adjusted Gross Income or AGI.
After that, you can calculate the taxes you owe with the help of net taxable income.
6. Claim Tax Credits
You might be eligible for some tax credits, which reduce your tax bill. Claim tax credits like
- Child and dependent care expenses
- Education tax credits
- Child tax credit
- The credit for the elderly or disabled
Moreover, check on the refunds you are eligible for in case you overpaid the taxes last time.
How to File Form 1040A?
This section will guide you on how to file Form 1040A electronically or via mail. You can either:
- File the tax returns electronically to the Internal Revenue Service.
- Prepare income tax returns and mail them to the IRS.
Want to Simplify Tax Preparation?
The above blog will guide you on how to fill out form 1040A. However, tax preparation and planning is a tricky niche. You’ll find out that with careful tax planning and research, you can save a considerable amount of your hard-earned money and reduce your tax bill.
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