Form 1040A

What Is a Form 1040A?

A Form 1040A was a shortened U.S. individual income tax return that the Internal Revenue Service (IRS) offered to taxpayers with relatively simple finances. Filers used it to report income, claim certain credits and deductions, and work out whether they owed tax or were due a refund. It could be filed on paper or electronically. The IRS stopped issuing Form 1040A after the 2017 tax year, and taxpayers now file the standard Form 1040 along with any required schedules.

How the Form Worked

Form 1040A asked for fewer details than the full Form 1040. It covered common income sources such as wages, interest income, dividends, retirement distributions, Social Security benefits, and unemployment compensation. It allowed the standard deduction but not itemized deductions, and it included a limited set of tax credits and adjustments to income.

Taxpayers with more complicated situations had to use Form 1040 with the relevant schedules instead. Examples included those with self-employment earnings, rental income, or itemized deductions. The choice of form depended on the types of income and deductions involved, not on the taxpayer's preference.

Why It Mattered to Investors

Investors with simple financial lives could report bank interest and dividend income on Form 1040A. The form had limited space for investment activity, however. Anyone who sold stocks, bonds, or other assets and needed to report capital gains or losses generally had to use the full Form 1040 with Schedule D.

Keeping track of which form applied helped filers collect the correct records, such as the Forms 1099 that brokers and banks send each year. Because tax rules change over time, the current IRS instructions for Form 1040 are the authoritative source for how investment income is reported.