Line 12: Pensions and Annuities
- 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 the distribution is from your IRA, use Line 11 instead.
- If the distribution is for disability pension, use Line 7 instead.
- If you rolled over your 401(k) or other pension plan money, enter the amount you rolled over in line 12a and write the word "Rollover" next to line 12b.
- Otherwise, using a calculator, add up all the distribution amounts from box 1 every 1099-R.
- Put the total figure on Line 12b.
- If you have a distribution from a pension or an annuity, you need to use the "Simplified Method Worksheet" in the Instructions for Form 1040A (PDF), page 25. Use that worksheet to calculate what part of your distribution is non-taxable.
- Did you take an early distribution from your 401(k)?
- If you withdrew money from your 401(k) 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 575 (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.
Line 13: Unemployment and Alaska Permanent Fund Dividends
- Gather all your 1099-G statement from the state agency that paid you unemployment compensation.
- Put the figure from the 1099-G on Line 13.
- If you received Alaska Permanent Fund dividends, put the figure reported to you by the State of Alaska on Line 13.
- If you have both unemployment and Alaskan dividends, add the two figures together and put the total on Line 13.
Line 14: Social Security Benefits
- Gather your 1099-SSA statement from the Social Security Administration.
- You must calculate how much of your benefits are taxable. This is done using the "Social Security Benefits Worksheet" in the Instructions for Form 1040A (PDF), page 27.
- The Social Security Administration explains how benefits are taxed.
Line 15: Total Income
- Using a calculator, add the figures on Lines 7, 8a, 9a, 10, 11b, 12b, 13, 14b, and 15 of your 1040-A.
- Put the total figure on Line 15.
Line 16: Penalty on early withdrawal of savings
Line 17: IRA Deduction
- If you made a contribution to a traditional IRA for 2004, put your total contribution on Line 17.
- Do not add in any contributions to a Roth IRA, 401(k), or other retirement plan.
- The most you can contribute to an IRA is $3,000 per year per person (or $3,500 if you are over 50 years old).
- If you are covered by a retirement plan at work, you must use the "IRA Deduction Worksheet" on page 28 of the Instructions for Form 1040A (PDF). Use this Worksheet to calculate what portion of your IRA contribution is deductible.
Tax Tip If your traditional IRA contribution is not deductible, consider converting it to a Roth IRA.
Line 18: Student Loan Interest Deduction
- If you are making student loan payments, your lender will send you a form 1098-E.
- The amount of interest you paid on your student loans for the year is on form 1098-E, box 1.
- The maximum amount of student loan interest you can claim is $2,500 per year.
- Put lower of your actual interest paid or the $2,500 maximum on Line 18.