1040A (2007)

IRS Resources

1040A - Introductory Material

Table of Contents

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Electronic Filing (e-file)

What's New

What's New for 2007

Tax benefits extended. The following tax benefits were extended through 2007.

Deduction for educator expenses in figuring adjusted gross income.
Tuition and fees deduction.

Alternative minimum tax (AMT) exemption amount decreased. The AMT exemption amount is decreased to $33,750 ($45,000 if married filing jointly or a qualifying widow(er); $22,500 if married filing separately).

At the time these instructions went to print, Congress was expected to consider legislation that would increase the amounts above. To find out if legislation was enacted, and for more details, see the Instructions for Form 6251.

Jury duty pay. If you are reporting income received for jury duty, or deducting jury duty pay you gave to your employer, you must file Form 1040.

Penalty on early withdrawal of savings. If you are deducting a penalty on the early withdrawal of savings, you must file Form 1040.

IRA deduction expanded. You may be able to take an IRA deduction if you were covered by a retirement plan and your 2007 modified adjusted gross income (AGI) is less than $62,000 ($103,000 if married filing jointly or qualifying widow(er)).

You may be able to deduct up to an additional $3,000 if you were a participant in a 401(k) plan and your employer was in bankruptcy in an earlier year. See the instructions for line 17 on page 27.

Earned income credit (EIC). You may be able to take the EIC if:

A child lived with you and you earned less than $37,783 ($39,783 if married filing jointly), or
A child did not live with you and you earned less than $12,590 ($14,590 if married filing jointly).

The maximum AGI you can have and still get the credit also has increased. You may be able to take the credit if your AGI is less than the amount in the above list that applies to you. The maximum investment income you can have and still get the credit has increased to $2,900. See the instructions for lines 40a and 40b that begin on page 38.

Mailing your return. You may be mailing your return to a different address this year because the IRS has changed the filing location for several areas. If you received an envelope with your tax package, please use it. Otherwise, see Where Do You File? on the back cover.

Insurance premiums for retired public safety officers. If you are a retired safety officer, you can elect to exclude from income distributions made directly from your eligible retirement plans to pay premiums for certain insurance. See the instructions for lines 12a and 12b on page 23.

Exemption for housing a person displaced by Hurricane Katrina expires. The additional exemption amount for housing a person displaced by Hurricane Katrina does not apply for 2007 or later years.

Telephone excise tax credit. This credit was available only on your 2006 return. If you filed but did not request it on your 2006 return, file Form 1040X using a simplified procedure explained in its instructions to amend your 2006 return. If you were not required to file a 2006 return, see the 2006 Form 1040EZ-T.

What's New for 2008

IRA deduction expanded. You and your spouse, if filing jointly, each may be able to deduct up to $5,000 ($6,000 if age 50 or older at the end of the year). You may be able to take an IRA deduction if you were covered by a retirement plan and your 2008 modified AGI is less than $63,000 ($105,000 if married filing jointly or qualifying widow(er)).

You may be able to deduct up to an additional $3,000 if you were a participant in a 401(k) plan and your employer was in bankruptcy in an earlier year. See the instructions for line 17 on page 27.

Earned income credit (EIC). You may be able to take the EIC if:

A child lived with you and you earned less than $38,646 ($41,646 if married filing jointly), or
A child did not live with you and you earned less than $12,880 ($15,880 if married filing jointly).

Personal exemption phaseout reduced. Taxpayers with adjusted gross income above a certain amount may lose part of their deduction for personal exemptions. The amount by which this deduction is reduced in 2008 will be only ½ of the amount of the reduction that otherwise would have applied in 2007.

Capital gain tax rate reduced. The 5% capital gain tax rate is reduced to 0%.

Tax on children's income. Form 8615 will be required to figure the tax for the following children with investment income of more than $1,800.

Children under age 18 at the end of 2008.
The following children if their earned income is not more than half their support.
1. Children age 18 at the end of 2008.
2. Children over age 18 and under age 24 at the end of 2008 who are full-time students.

The election to report a child's investment income on a parent's return and the special rule for when a child must file Form 6251 will also apply to the children listed above.

Expiring tax benefits. The following benefits are scheduled to expire and will not apply for 2008.

Deduction for educator expenses in figuring adjusted gross income.
Tuition and fees deduction.
Exclusion from income of qualified charitable distributions.
The election to include nontaxable combat pay in earned income for the EIC.

Filing Requirements

Introduction

These rules apply to all U.S. citizens, regardless of where they live, and resident aliens.

Have you tried IRS e-file? It's the fastest way to get your refund and it's free if you are eligible. Visit www.irs.gov for details.

Do You Have To File?

Use Chart A, B, or C to see if you must file a return.

Even if you do not otherwise have to file a return, you should file one to get a refund of any federal income tax withheld. You should also file if you are eligible for the earned income credit, additional child tax credit, health coverage tax credit, or refundable credit for prior year minimum tax.

Exception for children under age 18. If you are planning to file a return for your child who was under age 18 at the end of 2007, and certain other conditions apply, you can elect to include your child's income on your return. But you must use Form 1040 and Form 8814 to do so. If you make this election, your child does not have to file a return. For details, use TeleTax topic 553 (see page 70) or see
Form 8814.

A child born on January 1, 1990, is considered to be age 18 at the end of 2007. Do not use Form 8814 for such a child.

Resident aliens. These rules also apply if you were a resident alien. Also, you may qualify for certain tax treaty benefits. See Pub. 519 for details.

Nonresident aliens and dual-status aliens. These rules also apply if you were a nonresident alien or dual-status alien and both of the following apply.

You were married to a U.S. citizen or resident alien at the end of 2007.
You elected to be taxed as a resident alien.

See Pub. 519 for details.

When Should You File?

File Form 1040A by April 15, 2008. If you file after this date, you may have to pay interest and penalties. See page 69.

If you were serving in, or in support of, the U.S. Armed Forces in a designated combat zone, qualified hazardous duty area, or a contingency operation, see Pub. 3.

What If You Cannot File on Time?

You can get an automatic 6-month extension if, no later than the date your return is due, you file Form 4868. For details, see Form 4868.

If you make a payment with your extension request, see the instructions for line 42 on page 51.

An automatic 6-month extension to file does not extend the time to pay your tax. See Form 4868.

If you are a U.S. citizen or resident alien, you may qualify for an automatic extension of time to file without filing Form 4868. You qualify if, on the due date of your return, you meet one of the following conditions.

You live outside the United States and Puerto Rico and your main place of business or post of duty is outside the United States and Puerto Rico.
You are in military or naval service on duty outside the United States and Puerto Rico.

This extension gives you an extra 2 months to file and pay the tax, but interest will be charged from the original due date of the return on any unpaid tax. You must attach a statement to your return showing that you meet the requirements. If you are still unable to file your return by the end of the 2-month period, you can get an additional 4 months if, no later than June 16, 2008, you file Form 4868. This 4-month extension of time to file does not extend the time to pay your tax. See Form 4868.

Where Do You File?

See the back cover for filing instructions and addresses.

Private delivery services. You can use certain private delivery services designated by the IRS to meet the “timely mailing as timely filing/paying” rule for tax returns and payments. These private delivery services include only the following:

DHL Express (DHL): DHL Same Day Service, DHL Next Day 10:30 am, DHL Next Day 12:00 pm, DHL Next Day 3:00 pm, and DHL 2nd Day Service.
Federal Express (FedEx): FedEx Priority Overnight, FedEx Standard Overnight, FedEx 2Day, FedEx International Priority, and FedEx International First.
United Parcel Service (UPS): UPS Next Day Air, UPS Next Day Air Saver, UPS 2nd Day Air, UPS 2nd Day Air A.M., UPS Worldwide Express Plus, and UPS Worldwide Express.

The private delivery service can tell you how to get written proof of the mailing date.

Private delivery services cannot deliver items to P.O. boxes. You must use the U.S. Postal Service to mail any item to an IRS P.O. box address.

Chart A—For Most People

IF your filing status is . . .	AND at the end of 2007 you were* . . .
Single	under 65 65 or older	$8,750 10,050
Married filing jointly***	under 65 (both spouses) 65 or older (one spouse) 65 or older (both spouses)	$17,500 18,550 19,600
Married filing separately (see page 16)	any age	$3,400
Head of household (see page 16)	under 65 65 or older	$11,250 12,550
Qualifying widow(er) with dependent child (see page 17)	under 65 65 or older	$14,100 15,150
* If you were born on January 1, 1943, you are considered to be age 65 at the end of 2007. Gross incomemeans all income you received in the form of money, goods, property, and services that is not exempt from tax, including any income from sources outside the United States (even if you may exclude part or all of it). Do not include social security benefits unless you are married filing a separate return and you lived with your spouse at any time in 2007. * If you did not live with your spouse at the end of 2007 (or on the date your spouse died) and your gross income was at least $3,400, you must file a return regardless of your age.

Chart B—For Children and Other Dependents

See the instructions for line 6c that begin on page 18 to find out if someone can claim you as a dependent.

If someone can claim you as a dependent, use this chart to see if you must file a return.
In this chart, unearned income includes taxable interest, ordinary dividends, and capital gain distributions. Earned income includes wages, tips, and taxable scholarship and fellowship grants. Gross income is the total of your unearned and earned income.
Single dependents. Were you either age 65 or older or blind?
	No. You must file a return if any of the following apply.
	Your unearned income was over $850. Your earned income was over $5,350. Your gross income was more than the larger of—
		$850, or Your earned income (up to $5,050) plus $300.
	Yes. You must file a return if any of the following apply.
	Your unearned income was over $2,150 ($3,450 if 65 or older and blind). Your earned income was over $6,650 ($7,950 if 65 or older and blind). Your gross income was more than—
			The larger of:	Plus	This amount:
		$850, or Your earned income (up to $5,050) plus $300.			$1,300 ($2,600 if 65 or older and blind)
Married dependents. Were you either age 65 or older or blind?
	No. You must file a return if any of the following apply.
	Your unearned income was over $850. Your earned income was over $5,350. Your gross income was at least $5 and your spouse files a separate return and itemizes deductions. Your gross income was more than the larger of—
		$850, or Your earned income (up to $5,050) plus $300.
	Yes. You must file a return if any of the following apply.
	Your unearned income was over $1,900 ($2,950 if 65 or older and blind). Your earned income was over $6,400 ($7,450 if 65 or older and blind). Your gross income was at least $5 and your spouse files a separate return and itemizes deductions. Your gross income was more than—
			The larger of:	Plus	This amount:
		$850, or Your earned income (up to $5,050) plus $300.			$1,050 ($2,100 if 65 or older and blind)

Chart C—Other Situations When You Must File

You must file a return if either of the following applies for 2007.

You received any advance earned income credit (EIC) payments from your employer. These payments are shown in Form W-2, box 9.
You owe tax from the recapture of an education credit or the alternative minimum tax. See the instructions for line 28 that begin on
page 30.

You must file a return using Form 1040 if any of the following apply for 2007.

You owe any special taxes, such as social security and Medicare tax on tips you did not report to your employer or on wages you received from an employer who did not withhold these taxes.
You owe uncollected social security and Medicare or RRTA tax on tips you reported to your employer or on your group-term life insurance.
You had net earnings from self-employment of at least $400.
You had wages of $108.28 or more from a church or qualified church-controlled organization that is exempt from employer social security and Medicare taxes.
You owe additional tax on a qualified plan, including an individual retirement arrangement (IRA), or other tax-favored account. But if you are filing a return only because you owe this tax, you can file Form 5329 by itself.
You owe additional tax on a health savings account from Form 8889, Part III.

Would It Help You To Itemize Deductions on Form 1040?


	You may be able to reduce your tax by itemizing deductions on Schedule A (Form 1040). Itemized deductions include amounts you paid for state and local income or sales taxes, real estate taxes, personal property taxes, and mortgage interest. You may also include gifts to charity and part of the amount you paid for medical and dental expenses. You would usually benefit by itemizing if—
	Your filing status is:	AND	Your itemized deductions are more than:
	Single
Under 65 65 or older or blind 65 or older and blind				$5,350 6,650 7,950
	Married filing jointly
Under 65 (both spouses) 65 or older or blind (one spouse) 65 or older or blind (both spouses) 65 or older and blind (one spouse) 65 or older or blind (one spouse) and 65 or older and blind (other spouse) 65 or older and blind (both spouses)				$10,700 11,750 12,800 12,800 13,850 14,900
	Married filing separately*
Your spouse itemizes deductions Under 65 65 or older or blind 65 or older and blind				$0 5,350 6,400 7,450
	Head of household
Under 65 65 or older or blind 65 or older and blind				$7,850 9,150 10,450
	Qualifying widow(er) with dependent child
Under 65 65 or older or blind 65 or older and blind				$10,700 11,750 12,800
* If you can take an exemption for your spouse, see Standard Deduction Chart for People Born Before January 2, 1943, or Were Blind on page 31 for the amount that applies to you.
If someone can claim you as a dependent, it would benefit you to itemize deductions if they total more than your standard deduction figured on the Standard Deduction Worksheet for Dependents on page 31.

Where To Report Certain Items From 2007 Forms W-2, 1098, and 1099

IRS e-file takes the guesswork out of preparing your return. You may also be eligible to use Free File to file your federal income tax return. Visit www.irs.gov/efile for details.

If any federal income tax withheld is shown on these forms, include the tax withheld on Form 1040A, line 38.

Form	Item and Box in Which It Should Appear	Where To Report
W-2	Wages, tips, other compensation (box 1)	Form 1040A, line 7
	Allocated tips (box 8)	See Tip income on page 21
	Advance EIC payment (box 9)	Form 1040A, line 36
	Dependent care benefits (box 10)	Schedule 2, Part III
	Adoption benefits (box 12, code T)	Must file Form 1040
	Employer contributions to a health savings account (box 12, code W)	Must file Form 1040 if required to file Form 8889 (see the instructions for Form 8889)
	Amount reported in box 12, code R or Z	Must file Form 1040
W-2G	Gambling winnings (box 1)	Must file Form 1040
1098	Mortgage interest (box 1) Points (box 2)	Must file Form 1040 to deduct
	Refund of overpaid interest (box 3)	See the instructions on Form 1098
	Mortgage insurance premiums (box 4)	Must file Form 1040 to deduct
1098-C	Contributions of motor vehicles, boats, and airplanes	Must file Form 1040 to deduct
1098-E	Student loan interest (box 1)	See the instructions for Form 1040A, line 18, on page 29
1098-T	Qualified tuition and related expenses (box 1)	See the instructions for Form 1040A, line 19, on page 29, or line 31, on page 35, but first see the instructions on Form 1098-T
1099-A	Acquisition or abandonment of secured property	See Pub. 544
1099-B	Broker and barter exchange transactions	Must file Form 1040
1099-C	Canceled debt (box 2)	Must file Form 1040 if taxable (see the instructions on Form 1099-C)
1099-DIV	Total ordinary dividends (box 1a)	Form 1040A, line 9a
	Qualified dividends (box 1b)	See the instructions for Form 1040A, line 9b, on page 22
	Total capital gain distributions (box 2a)	See the instructions for Form 1040A, line 10, on page 22
	Amount reported in box 2b, 2c, or 2d	Must file Form 1040
	Nondividend distributions (box 3)	Must file Form 1040 if required to report as capital gains (see the instructions on Form 1099-DIV)
	Investment expenses (box 5)	Must file Form 1040 to deduct
	Foreign tax paid (box 6)	Must file Form 1040 to deduct or take a credit for the tax
1099-G	Unemployment compensation (box 1)	Form 1040A, line 13. But if you repaid any unemployment compensation in 2007, see the instructions for line 13 on page 25
	State or local income tax refund (box 2)	See the instructions on page 21
	Amount reported in box 5, 6, or 7	Must file Form 1040
1099-INT	Interest income (box 1)	See the instructions for Form 1040A, line 8a, on page 21
	Early withdrawal penalty (box 2)	Must file Form 1040 to deduct
	Interest on U.S. savings bonds and Treasury obligations (box 3)	See the instructions for Form 1040A, line 8a, on page 21
	Investment expenses (box 5)	Must file Form 1040 to deduct
	Foreign tax paid (box 6)