Form 1040A Instructions

Form 1040-A Instructions for Tax Year 2006

Print your name, address, and Social Security Number at the top of the form.

• Double check the spelling of your name and your SSN.
• Your refund may be delayed if your name or SSN does not match your Social Security records, or if you make a mistake in your address.

Lines 1-5: Filing Status

Lines 6a-6d: Dependents and Exemptions

Line 6b: Check the box if you can claim your spouse's personal exemption. For most people the answer is yes. You cannot claim your spouse if someone else is claiming your spouse as a dependent. Usually this is the spouse's parents, so ask them if you are not sure.

Line 6c: Write the name, Social Security Number, and relationship for each dependent you are claiming. Typically, you can claim as a dependent any children who lived with you for more than half the year and who did not provide over half of their own financial support. You may also want to review the rules for claiming a dependent. If the child is 16 years old, or younger, at the end of the year, check the box in column 4. They qualify for the Child Tax Credit.

Line 6d: Add up the number of personal exemptions you can claim. Claim one for yourself, one for your spouse, and one for each dependent. Put the total in the box for line 6d.

Line 7: Wages

• Gather all your Form W-2 wage and tax information statements from each job you worked during the year.
• Look in Box 1 of the W-2. This is your total wages. Using a calculator, add up the Box 1 amounts from every W-2.
• Put the total figure on Line 7.

Line 8a: Interest

• Gather all your 1099-INT statements from each bank that reported your interest earnings for the year.
• Using a calculator, add up all the interest amounts from every 1099-INT.
• Put the total figure on Line 8a.
• If you have more than $1,500 in interest, you must fill out Schedule 1 (PDF) and attach it to your Form 1040-A.

Line 8b: Tax-Exempt Interest

• Add up all the tax-exempt interest you have earned on municipal bonds. Put the total on line 8b. Do not include this interest in your taxable interest on line 8a.

Line 9: Dividends

• Gather all your 1099-DIV statements from each mutual fund or company that reported your dividends for the year.
• Using a calculator, add up all the dividend amounts from box 1a every 1099-DIV.
• Put the total figure on Line 9a.
• All dividends are ordinary dividends, and are reported on line 9a. Some dividends qualify for reduced tax rates, and these are called Qualified Dividends.
• Qualified dividends are reported in box 1b of you 1099-DIV. Put your total qualified dividends on line 9b.

If you have more than $1,500 in interest or dividends, you must fill out Schedule 1 (PDF) and attach it to your Form 1040-A.

Line 10: Capital Gains Distributions

• Gather all your 1099-DIV statements from each mutual fund for the year.
• Using a calculator, add up all the dividend amounts from box 2a every 1099-DIV.
• Put the total figure on Line 10.
• Look at boxes 2b, 2c, and 2d of your 1099-DIV statements.
  • Do you have any amounts in these boxes?
  • If yes, you must use Form 1040 and report your gains on Schedule D.
  • If not, then you may continue to use Form 1040A.

Line 11: IRA Distributions

• Gather all your 1099-R statements from each bank, mutual fund, or retirement plan for the year.
• 1099-R statements report distributions from various retirement plans.
• If you rolled over your IRA, enter the amount you rolled over in line 11a and write the word "Rollover" next to line 11b.
• Using a calculator, add up all the distribution amounts from box 1 every 1099-R.
• Put the total figure on Line 11b.
• Did you take an early distribution from your IRA?
  • If you withdrew money from your IRA and you were born before July 1, 1933,
  • and you did not rollover that money,
  • then you may owe additional tax on the early distribution.
  • You must use Form 1040, and read Publication 590 (PDF) to figure the additional tax.
• Look at boxes 4 and 10 of your 1099-R.
  • Do you have any amounts in these boxes?
  • If yes, remember to include these amounts for your tax withheld.
  • The amount in box 4 is added to your other withholding on Line 39.
  • The amount in box 10 is added to your state tax withholding on your state tax form.

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