What Form 1040A (2014) Is For
IRS Form 1040A (2014) is a simplified version of the federal income tax return used by taxpayers with moderate income and straightforward filing needs. It allows eligible families to claim tax credits, including the Child Tax Credit and the Additional Child Tax Credit, without completing the full Form 1040. Form 1040A supports several key adjustments and credits that reduce taxable income and help determine eligibility for tax benefits.
Taxpayers use this form to report wages, interest, dividends, unemployment compensation, pensions, annuities, Alaska Permanent Fund dividends, and specific adjustments. It also allows families to claim education tax credits, dependent care expenses, and the Earned Income Tax Credit, provided they meet the income and filing status requirements. Form 1040A offers a streamlined approach for families who choose not to itemize deductions and prefer a shorter tax return while still claiming significant credits that reduce their tax liability.
For a detailed breakdown of filing requirements, eligibility rules, and step-by-step instructions, see our comprehensive Form 1040A Child Tax Credit (2014): A Complete Guide.
When You’d Use Form 1040A (2014)
Taxpayers use IRS Form 1040A for 2014 when they have income, such as wages, salaries, dividends, pensions, annuities, or Alaska Permanent Fund dividends, and want a simplified version of the tax return. This form is suitable for families who plan to claim the Child Tax Credit, Additional Child Tax Credit, Earned Income Tax Credit, or Education Tax Credits without needing to file Form 1040. It supports reporting unemployment compensation, capital gains distributions, and specific adjustments such as student loan interest, IRA contributions, and educator expenses. Taxpayers who do not plan to itemize deductions and prefer the standard deduction often choose Form 1040A.
Form 1040A is also used when a taxpayer needs to file a joint return for the tax year or is married filing jointly and meets IRS income and eligibility rules. Those who discover they did not claim a tax credit they were eligible for may submit an amended return to correct tax liability, update a child’s Social Security number, or claim a refundable portion of a credit. This form helps taxpayers determine eligibility for credits that reduce the tax bill or amount they owe. It is commonly selected by families, parents, and those with dependents who want a straightforward way to calculate taxable income during tax season.
Key Rules or Details for 2014
For the 2014 tax year, taxpayers using IRS Form 1040A 2014 must follow IRS rules that define who may qualify for the Child Tax Credit and Additional Child Tax Credit. Each child must meet age, support, and residency requirements, and the taxpayer must have the correct filing status. Income limits apply, and credit amounts begin to phase out when adjusted gross income exceeds set thresholds. Families may also claim dependent care expenses, education tax credits, and other credits that reduce the tax owed.
Form 1040A allows for several adjustments that lower income before calculating taxable income, including student loan interest, IRA contributions, and approved deduction categories. Taxpayers may report dividends, interest, wages, pensions, annuities, and assets as part of their regular filing. The IRS requires accurate forms, correct date entries, and proper documentation to confirm eligibility for each credit. Those who exceed Form 1040A limits or have corporation, S corporation, or estate income must file a complete Form 1040 instead.
For complete details on wage reporting, withholdings, and unemployment tax filings, see our guide for Individual Tax Forms.
Step-by-Step (High Level)
Taxpayers complete Form 1040A by entering income, dependents, adjustments, credits, and tax amounts. The following steps outline the process in a clear and logical order.
Income and Dependents
- Report wages, salaries, tips, interest, dividends, pensions, annuities, unemployment compensation, and Alaska Permanent Fund dividends.
- List all dependents, including each child’s full name, Social Security number, and relationship.
- Determine whether each dependent qualifies for the Child Tax Credit or other tax credits based on IRS rules.
Calculate Adjusted Gross Income
- Enter allowable adjustments such as IRA contributions, student loan interest, and educator expenses.
- Calculate adjusted gross income using the form instructions.
Determine Taxable Income
- Select the correct standard deduction based on filing status.
- Calculate taxable income and compare with IRS tax tables.
Claim Credits
- Use the Child Tax Credit Worksheet to figure the allowable credit based on income and the number of qualifying children.
- Determine whether any portion is refundable as the Additional Child Tax Credit.
- Consider other applicable credits such as Earned Income Tax Credit, dependent care expenses, or education tax credits.
- Report each credit on the corresponding line to minimize your tax bill.
Final Steps
- Calculate total tax liability and total payments.
- Determine whether the taxpayer is owed a refund or needs to submit a remaining amount.
- Sign and submit the completed form to the IRS by the appropriate date.
Common Mistakes and How to Avoid Them
- A taxpayer enters an incorrect Social Security number or claims a dependent who does not meet age or residency rules, and can avoid this by verifying all dependent information before filing.
- A taxpayer miscalculates income phaseout amounts for the Child Tax Credit, and can prevent this by comparing their adjusted gross income to the IRS thresholds for their filing status.
- A taxpayer who forgets to complete the additional Child Tax Credit calculation can avoid losing the refundable portion by completing the worksheet whenever the nonrefundable credit does not fully apply.
- A taxpayer fails to report all required income, such as unemployment compensation or capital gains distributions, and can avoid IRS notices by reviewing all Form 1040A income sources before filing.
Learn more about how to avoid business tax problems in our guide on How to File and Avoid Penalties.
What Happens After You File
After taxpayers submit IRS Form 1040A for 2014, the IRS reviews income, dependents, and all tax credits to verify eligibility for the Child Tax Credit and Additional Child Tax Credit. The agency verifies each Social Security number, income amounts, and adjustments, including dividends, wages, pensions, and unemployment compensation, to ensure the tax return is accurate. If information does not match IRS or Social Security records, the taxpayer may receive a notice requesting documentation to confirm taxable income or claim details. Refunds or remaining tax liability are then calculated based on credits, deductions, and the portion of income reported.
FAQs
Can a child who turns 17 in 2014 still qualify for the Child Tax Credit?
No, the child must be under age 17 at the end of the tax year to qualify for the credit.
Can both parents claim the same child for the Child Tax Credit?
No, only one taxpayer may claim a child in a given year. Custodial parents generally have priority unless they release the claim.
What happens if someone forgot to claim the Child Tax Credit on their original return?
The taxpayer may file Form 1040X to amend the return and claim the credit if they were eligible.
Can an adopted child be claimed for the Child Tax Credit?
Yes, an adopted child with proper legal placement and residency may qualify if all other requirements are met.
Does Form 1040A allow taxpayers to claim the Additional Child Tax Credit?
Yes, Form 1040A supports both the nonrefundable and refundable portions when the taxpayer completes the required worksheets.
