What is the difference between tax form 1040 and 1040a

Specific items include wages, salaries and tips, interest and dividend income, capital gains, IRA, pension and annuity distributions, unemployment compensation, Alaska permanent fund dividends and Social Security benefits. If you have other types of income, such as from a business you operate as a sole proprietorship, you still must report the income since it is taxable, but you must file Form After reporting your income, the A form allows you to claim certain adjustments to arrive at your adjusted gross income.

These include deductions for educator expenses, IRA contributions, student loan interest and tuition payments. The second page of Form A allows you to subtract a standard deduction and your exemption deductions for tax years prior to from your adjusted gross income to arrive at your taxable income. You then need to determine the amount of tax you owe by finding the appropriate range for your taxable income and filing status in the tax tables in the instructions. Once you calculate your tax, Form A allows you to claim a limited number of tax credits such as for child and dependent care expenses, child tax credit, the credit for the elderly or disabled and education tax credits.

Your total credits reduce your tax bill on a dollar-for-dollar basis. After reducing your tax by the credits, you reduce it again by the amount of your tax payments and withholding. The filing status and exemptions section of Form A is similar to the corresponding section on Form Due to the limited types of income you can receive and the limited adjustments to income you can make on Form A, the income and adjusted gross income sections of Form A are much shorter.

One of the most significant differences between the two forms is that you can itemize deductions on Form but not on Form A. Remember, with TurboTax , we'll ask you simple questions about your life and help you fill out all the right tax forms. Whether you have a simple or complex tax situation, we've got you covered.

Feel confident doing your own taxes. Just answer simple questions about your life, and TurboTax Free Edition will take care of the rest. For Simple Tax Returns Only. What are Income Tax Forms? To benefit from claiming dependents, deductions or adjustments and credits, you must use Form A or This article originally appeared on GOBankingRates.

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With the new year right around the corner, it could be the perfect time to consider some explosive new opportunities. As prices soar, here's how to lessen the impact on your wallet. All three forms are basically the same, with one difference.

Form EZ is for simple returns. Still wondering which IRS tax form should I use? What are the requirements for filing the easiest tax form? Your return can be a little more complex with Form A. You cannot itemize your deductions using Form A.

In addition, some less common tax items prevent you from filing Form A. TaxAct makes preparing and filing your taxes quick, easy and affordable so you get your maximum refund. Start free now or sign into your TaxAct Account. Start for free Sign In. Related Articles. Read Article.