Introduction

For a long time, taxpayers with simple finances had different options to select from when completing IRS tax forms. One of such options was Form 1040A which was a middle ground from the rudimentary 1040EZ yet more concise than the Form 1040.

Nonetheless, due to the IRS modernization, 1040A has since been removed post the 2017 tax year. All taxpayers now are required to complete a single consolidated Form 1040.

This post aims to clarify what Form 104A was and who its users were in addition to the reasons for its discontinuation along with the means by which taxpayers can deal with persistent as well as past returns.

What Is Form 1040A?

Form 1040A was a simplified version of the individual income tax return for persons who had simple tax filing requirements.

It was the “middle” form, meaning:

• In contrast to the 1040EZ, it was less restrictive (though it still barred taxpayers with dependents or certain credits).
• It was less comprehensive than the full 1040 Form which permitted deductions and all types of income.

For decades, it has offered a simple way for millions of Americans to complete their tax filing without having to navigate through dozens of lines and schedules.

Purpose and Role in the U.S. Tax System

In an effort to lighten the burden on taxpayers while still obtaining the necessary income information, the IRS developed Form 1040A. Some primary ways taxpayers benefited from this form include the following:

• Filing was made easier by eliminating many steps for taxpayers with wage and retirement income. 
• Form 1040A also included claims such as the Child Tax Credit and Education Credits, which Form 1040EZ did not offer. 
• Form 1040A met the needs of retirees and families, who did not want the full complications of Form 1040.

It was the most popular form allowing taxpayers with moderate tax complexities to file in between the most simple and most complex tax forms.

Who Was Eligible to File 1040A

Not everyone could opt for the 1040A form. There were particular constraints associated with the form. The constraints included the following:

• Income: Taxable income had to be less than $100,000.
• Income Sources: Acceptable forms of income included wages, interest, dividends, unemployment benefits, taxable Social Security, and retirement distributions.
• Adjustments: For the purposes of this form, the taxpayer could claim very few deductions such as IRS deductions or student loan interest.
• Deductions: The taxpayer was allowed to claim only the standard deduction. Itemizing was not an option.
• Credits: The taxpayer was allowed to claim the Earned Income Credit, Child Tax Credit, and Education Credits, but had no access to all the credits claimed on Form 1040.

If you had business income, capital gains, or self-employment earnings, you were compelled to complete the long Form 1040.

Differences Between 1040, 1040A, and 1040EZ

Here’s a quick rundown on how the three forms were structured prior to 2018:

Feature	1040EZ	1040A	1040
Income Limit	Under $100,000	Under $100,000	No limit
Dependents	Not allowed	Allowed	Allowed
Adjustments	None	Limited	Full range
Deductions	Standard only	Standard only	Standard or itemized
Credits	Limited	Several allowed	Full range
Complexity	Easiest	Moderate	Most complex

Why Form 1040A Was Discontinued

The IRS no longer uses 1040A as of the 2018 tax year due to changes made which stem from the Tax Cuts and Jobs Act (TCJA).

Rather than keeping three separate versions of Form 1040, the IRS merged and simplified the three versions into a newly designed single Form 1040. Although additional information is classified as supplemental schedules (Schedules 1, 2, or 3, etc.), the new design is still much less compact than the previous version.

Confusion about which form to file is minimized, and the IRS is able to ‘catch up’ on modernizing the procedure used to file forms, whether on paper or electronically.

What to Use Instead

Currently, every filer uses Form 1040 with no consideration to income level or the complexity of the issue at hand. The difference is whether or not you need to attach additional schedules.

• Simple Returns: Taxpayers with only W-2 income and the standard deduction complete only the base form, which is the simplest version of the 1040.
• More Detailed Returns: Individuals with additional investments, small business income, or those intending to itemize deductions will need to add reporting schedules to their returns.

The 1040 now absorbs both 1040A and 1040EZ, which means it is the only filing option available to the public.

Accessing Old 1040A Returns

Form 1040A is now obsolete, but you might need some past returns available, particularly when applying for a mortgage or financial aid or even for immigration documents. These include:

• IRS transcripts: These free tax transcripts may be ordered online by using the IRS Get Transcript service.
• Exact copies: To obtain official copies of old 1040A returns, you will need to file Form 4506 with the IRS, alongside a processing fee.
• Tax software or preparers: Your software or accountant may have copies if you e filed your tax returns electronically.

Conclusion

Form 1040A used to be a helpful shortcut for taxpayers earning under $100,000, enabling them to claim a few credits without needing to itemize deductions. However, due to the IRS’s efforts to simplify the tax process, it was replaced by the more comprehensive Form 1040, starting in the year 2018.

All taxpayers who used Form 1040A in the past, can now shift to Form 1040, however, in most jurisdictions, the tax process is just as straightforward. Dimov Wasserman CPA will help you better keep track of the changes made by the IRS to file properly, to avoid any unnecessary issues.

FAQs

What is a 1040A tax form?

Form 1040A was a simplified version of the individual income tax return for people with moderate income and basic tax situations.

Who could file a 1040A?

Taxpayers with income under $100,000 and simple income sources like wages, interest, or retirement distributions could file Form 1040A.

Is Form 1040A still valid?

No. The IRS discontinued Form 1040A starting with the 2018 tax year.

What replaced 1040A and 1040EZ?

A redesigned Form 1040 replaced both 1040A and 1040EZ to simplify the filing process.

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

Yes. You can order past returns through the IRS Get Transcript service, file Form 4506 for copies, or check with your tax preparer or software provider.