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

Introduction

IRS Form 1040A is and has been synonymous with simplicity to many US residents with its tailored structure and capacity to cover a certain group of people and their finances. It offered a simpler and shorter version of Form 1040 and was offered to people with simple business and personal finances. A feature of the 1040A that set it apart was the increased flexibility provided to users with dependants or avail added tax credits.

What Was Form 1040A?

The IRS started the yearly tax reporting with the 1040A simplified version and 1040A probably will not go anywhere with the seamless reporting it provides. All tax reporting forms starting with 1040A forms are centralised. The IRS scrapped 1040A and 1040EZ forms and simplified the core structure of 1040. Tax reporting year 2018 marked the simplification period.

This 1040A did and still does offer a tax reporting form and 1040A is and will continue to set the slander for simple forms that touch base and cover a certain group of people. Any tax reporting that was done referring to these simplified forms will likely be set in the simpler version 1040A forms.

Its Purpose and Role in the U.S. Tax System

Form 1040A eased challenges for filers and reduced the complexities associated with submitting their taxes. It served as a middle ground for:

• Greater features than 1040EZ, including the ability to claim different dependents and receive a variety of certain credits.
• Far more simplified than the Form 1040 as it included fewer sources of income and limited deductions.

For decades, millions of Americans, especially retirees and wage earners, were able to file within the limited income and deduction frameworks without the stress of completing the entire Form 1040.

Who Was Eligible to File 1040A

Form 1040A was not accessible to all. It was limited income types, income amount, and the deductions within:

• Wages, salaries, tips, and certain types of retirement income as well as retirement funds, social security and trustees retirement still within the United States.
• Income amount: to qualify as a taxpayer, income must have been gross income earning not more than $100,000
• Adjustments: Contributions to IRA accounts and the student loan interest can be claimed.
• The only qualifying deductions were the standard deductions only as itemizing was not enabled.
• Certain credits: all Refundable and Nonrefundable such as the Earned Income credit, the Child Tax credit, and the Education credits.

People who were unable to meet the required criteria, could not escape the full Form 1040.

Differences Between 1040, 1040A, and 1040EZ

In the past, the three forms differed before the year 2018 as outlined below:

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Why Form 1040A Was Discontinued

In 2018, the IRS tax filing system was changed as a result of the simplification initiative following the Tax Cuts and Jobs Act (TCJA).

The objective was to improve the filing system by consolidating the three forms (1040, 1040A, 1040EZ) into a single redesigned Form 1040. The goal was to eliminate the ‘tiered’ form approach to complexity, and instead, the modified 1040 would use additional schedules to cater to the taxpayer’s unique situation.

This approach cleared up the confusion on which form to file, streamlined the filing system, and made it uniform for all taxpayers.

What to Use Instead 

Currently, all individual taxpayers are required to use Form 1040. The form may differ from the original “long form,” but it was designed with a universal form structure and additional schedules for more intricate cases, such as:

• Simple returns. Taxpayers with only W-2 income and the standard deduction often need only the base Form 1040.
• More complex returns. Those with business income, itemized deductions, or investment earnings may need to file additional schedules (Schedules 1 through 3, plus other attachments).

In effect, the modern 1040 covers everything that 1040A and 1040EZ used to handle, just in one consolidated format.

Accessing Old 1040A Returns

Although copies of Form 1040A are no longer in use, you may need them when applying for loans or during IRS inquiries. Here’s how to obtain them:

• Tax transcripts- order free transcripts online through the IRS Get Transcript tool.
• Copies of returns- if you need an exact old copy of Form 1040A, file Form 4506, and pay a small fee.
• Tax software or preparers- if you e-filed your taxes, your provider may have archived copies.

Conclusion

Form 1040A was important in simplifying tax filing for millions of Americans with straightforward financial lives. With IRS efforts to modernize and consolidate forms, however, it has been replaced with the redesigned Form 1040, which now has universal status for all individual taxpayers.

If you filed a 1040A before, don’t panic. You will now file using Form 1040, which is just as easy in most situations. The IRS changes its content frequently, so you will want to file appropriately to avoid issues.

Need help understanding IRS form changes or filing correctly? Contact Watter CPA today for expert tax guidance and personalized support.

FAQs

• What is a 1040A tax form?
• Who could file a 1040A?
• Is Form 1040A still valid?
• What replaced 1040A and 1040EZ?
• Can I still get copies of my old 1040A returns?

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