What Is IRS Form 1040A? History, Eligibility & Replacement

Introduction

1040A simplified taxes for simplified clients. Any taxpayer using any simplified version of 1040A, used for filing taxes, was offered a version that provided a less time-consuming paperwork. Yet, starting from the 2018 tax period, the IRS stopped using Form 1040A along with Form 1040EZ, folding everything into a reconfigured Form 1040.

Form 1040A was used by people with simple tax situations. The version had fewer calculations as compared to the longer 1040 and was, therefore, easier to fill. Form 1040A was often called the “short form.”

Unlike the 1040EZ, which was the most basic, 1040A was user friendly as it provided flexible options to people with dependents and those who qualified for some tax credit.

Purpose and Function within the US Tax System

The IRS introduced the 1040A form for taxpayers that qualified and had a simpler tax situation that didn’t constitute work for a full tax return form. It served as a halfway point:

More options than 1040EZ (like claiming certain other dependents and certain credits). Less complex than 1040, as it was streamlined to popular income sources and popular deductions.

For many decades, it served as a method for millions of Americans to file tax returns, especially wage earners and pensioners, under the burden of a complicated 1040.

Who was able to file the 1040A

The US Form 1040A was not a universal form available to anyone without the burden of restrictions. Eligibility criteria primarily revolved around the type of income, income ceiling, and deductions available:

• Sources of income: Wages and salaries, tips, unemployment compensation, taxable portions of Social Security, and certain retirement income. For taxpayers within the income population, taxable income had to be under $100,000.
• Adjustments: Only deductions that were restricted to things like IRA contributions and student loan interest.
• Deductions: Only standard deduction. Itemized deduction was not available.
• Credits allowed: There were some refundable and nonrefundable credits that taxpayers were eligible for, namely the Earned Income Credit, the Child Tax Credit and certain Education Tax Credits.

If your financial situation exceeded these credits, then you were obligated to the use the 1040.

Differences Between 1040, 1040A, and 1040EZ

Here is a simplified comparison about how the three forms were before 2018:

Why Form 1040A Was Discontinued

As a result of the Tax Cuts and Jobs bill, the whole tax system was modernized and simplified. Form 1040A was removed because it was easier to integrate it into the simplified form than to keep it separate.

The basis of this transformation was an attempt to streamline the tax filing system and the process of recording forms. The three distinct documents of 1040, 1040A, and 1040EZ were eliminated and form 1040 was redesigned to form the core of the filing system. Each 1040 form could be modified by adding additional documents or schedules.

This change removed the uncertainty for taxpayers concerning which documents to file. The whole process was harmonized and simplified for the taxpayers.

What to Use Instead

At present, all individual taxpayers are required to file a 1040 form. Though it was branded differently from the old “long form,” the new form has a simplified core structure, allowing subdivisions for highly complex cases.

• Straightforward Returns: Taxpayers that have standard deductions and only W-2 income usually only require the basic version of Form 1040.
• Complicated Returns: Taxpayers that have business income, venture into itemized deductions, or have investment income may require additional schedules (Schedules 1-3 and potentially additional forms).

Essentially, the modern 1040 encompasses everything the 1040A and 1040EZ used to cover, but in a single, modern presentation.

Accessing Old 1040A Returns

It is possible that you may require old copies of Form 104A, version A, for reference while applying for a loan, or in direct correspondence to the IRS. If you have copies of your older forms, you may still reference the following to support your claim:

• Tax Form Transcripts: you may obtain a free tax transcript through the IRS Get a Transcript page.
• Old copies of 1040A may be requested through the completion of Form 4506 after a small payment is settled.
• Tax Software: If your tax forms were submitted electronically, your tax provider may still have forms in their archives.

Conclusion

Form 1040A was important in the evolution of the tax filing process as it simplified the process and the hurdles one with finances had to overcome to file taxes. The IRS continues to modernize and consolidate outdated forms into the new Form 1040. It has now become the primary form that all individual taxpayers are required to fill in.

If you did a 1040A in the past, it is not a problem—most people will continue to use 1040, and in those cases, it is just as easy as before. You will avoid many problems if you pay attention to the changes made by the IRS.

For guidance on filing the current Form 1040 or retrieving old tax records, reach out to Dimov NYC CPA for expert taxation assistance.

FAQs

What is a 1040A tax form?

Form 1040A was a simplified tax return for people with basic income and deductions, discontinued after the 2017 tax year.

Who could file a 1040A?

Taxpayers with taxable income under $100,000, standard deductions only, and limited credits like the Child Tax Credit or Earned Income Credit.

Is Form 1040A still valid?

No, it was phased out starting with the 2018 tax year.

What replaced 1040A and 1040EZ?

Both were replaced by a redesigned Form 1040 with optional schedules for complex returns.

Can I still get copies of my old 1040A returns?

Yes, through IRS transcripts, Form 4506 requests, or archived tax software.