2016 Form 1040A Tax Year Checklist
Year-Specific Context
Form 1040A for 2016 continues the Affordable Care Act health coverage reporting requirement on line 38, first introduced in 2014. Taxpayers must confirm full-year coverage, claim exemptions via Form 8965, or calculate the shared responsibility payment. The premium tax credit advance reconciliation via Form 8962 remains mandatory for individuals with Marketplace coverage.
This simplified form applies to taxpayers with taxable income below $100,000 whose income is limited to wages, interest, dividends, capital gain distributions, IRA distributions, pensions, unemployment compensation, Alaska Permanent Fund dividends, and Social Security benefits.
2016 Tax Year Specifications
Standard Deduction: $6,300 (Single or Married filing separately), $12,600 (Married filing jointly or Qualifying widow(er)), $9,300 (Head of household). Additional amounts apply for individuals aged 65 or older or those who are blind: $1,250 (married), $1,550 (unmarried).
Personal Exemption: $4,050 per person
Educator Expense Limit: $250 per eligible educator
Filing Deadline: April 18, 2017 (extended due to Emancipation Day holiday in the District of Columbia)
Ten-Step Pre-Filing Checklist
Step 1: Verify Filing Status and Eligibility
Confirm your filing status: Single, Married filing jointly, Married filing separately, Head of household, or Qualifying widow(er). Verify taxable income does not exceed $100,000.
Confirm income sources are limited to:
- Wages, salaries, and tips
- Interest and ordinary dividends
- Capital gain distributions (from Form 1099-DIV box 2a only)
- IRA and pension distributions
- Unemployment compensation
- Alaska Permanent Fund dividends
- Social Security benefits
Business income, self-employment income, or Schedule C activity disqualifies the use of this form.
Step 2: Gather and Organize Income Documents
Collect all Forms W-2 for wages, tips, and salaries (line 7). Obtain Forms 1099-INT (taxable interest, line 8a) and 1099-DIV (ordinary dividends, line 9a; qualified dividends, line 9b; capital gain distributions, line 10).
Secure Forms 1099-G (unemployment, line 13), 1099-R (IRA and pension distributions, lines 11-12), and SSA-1099 (Social Security benefits, line 14a).
Retain Forms 1095-A, 1095-B, and 1095-C for line 38 health coverage verification. Do not attach these forms to your return.
Step 3: Calculate Adjusted Gross Income
Sum income from lines 7 through 14b to obtain total income (line 15).
Report allowed adjustments:
- Line 16: Educator expenses (up to $250 per eligible educator)
- Line 17: IRA deduction
- Line 18: Student loan interest deduction
- Line 19: Tuition and fees deduction (attach Form 8917 if claimed)
Subtract total adjustments (line 20) from total income to arrive at AGI (line 21, transferred to line 22).
Step 4: Determine and Enter Standard Deduction
Enter the appropriate standard deduction on line 24 based on your filing status. Check boxes on line 23a if you or your spouse were born before January 2, 1952, or are blind to increase your standard deduction.
Standard deduction increases for age or blindness:
- Add $1,250 per person if married
- Add $1,550 if unmarried
Step 5: Calculate Taxable Income and Exemptions
Subtract standard deduction (line 24) from AGI (line 22); enter result on line 25 (or zero if deduction exceeds AGI).
Multiply the number of claimed exemptions (line 6d) by $4,050 to determine the exemption deduction (line 26).
Subtract exemption deduction from line 25 to determine taxable income (line 27). Enter zero if exemptions exceed line 25.
Step 6: Determine Tax Liability
Using taxable income (line 27) and the 2016 tax tables provided in instructions for your filing status, look up your tax amount. Enter tax on line 28.
Add excess advance premium tax credit repayment (line 29, attach Form 8962 if applicable) to tax on line 28; enter total on line 30.
Step 7: Claim Eligible Credits and Calculate Net Tax
Line 31: Child and dependent care credit (attach Form 2441)
Line 32: Credit for elderly or disabled (attach Schedule R if applicable)
Line 33: Education credits from Form 8863 (attach form)
Line 34: Retirement savings contributions credit (attach Form 8880)
Line 35: Child tax credit (attach Schedule 8812 if required)
Sum all credits (line 36) and subtract from total tax (line 30); enter net tax on line 37 (or zero if credits exceed tax).
Step 8: Report Health Coverage Responsibility
Check the “Full-year coverage” box on line 38 if you, your spouse (if filing jointly), and all claimed dependents had qualifying health coverage for the entire 2016 year.
If anyone lacked coverage for any month:
Do not check the box. Instead, attach Form 8965 to claim a coverage exemption or calculate the shared responsibility payment amount.
Qualifying health coverage includes:
- Employer-sponsored coverage
- Medicare
- Medicaid
- TRICARE and VA coverage
- Health Insurance Marketplace plans
- Other minimum essential coverage
Step 9: Report Payments and Calculate Refund or Amount Owed
Line 40: Federal income tax withheld from Forms W-2 and 1099
Line 41: 2016 estimated tax payments plus any overpayment from the 2015 return applied to 2016
Line 42a: Earned income credit (attach Schedule EIC if claiming with a qualifying child); include nontaxable combat pay election on line 42b if applicable
Line 43: Additional child tax credit (attach Schedule 8812)
Line 44: American Opportunity Credit from Form 8863
Line 45: Net premium tax credit (attach Form 8962)
Sum lines 40 through 45 to enter total payments on line 46.
If line 46 exceeds line 39, You have an overpayment. Subtract line 39 from line 46; enter the result on line 47. Choose to receive a refund (line 48a) or apply the amount to 2017 estimated tax (line 49), or split between both.
If line 39 exceeds line 46: You owe tax. Subtract line 46 from line 39; enter the amount owed on line 50.
Step 10: Complete Return, Verify Accuracy, and Prepare for Filing
Sign and date your return. If filing jointly, both spouses must sign the return. Enter your occupation(s) and daytime telephone number.
Attach all required schedules in order:
- Forms W-2
- Form 1099-R (if applicable)
- Form 8962 (if advance premium tax credit received)
- Form 8965 (if claiming exemption or reporting shared responsibility payment)
- Schedule EIC (if claiming earned income credit with qualifying children)
- Form 2441 (if claiming child and dependent care credit)
- Schedule R (if claiming credit for elderly or disabled)
- Form 8863 (if claiming education credits)
- Form 8917 (if claiming tuition and fees deduction)
- Form 8880 (if claiming retirement savings contributions credit)
- Schedule 8812 (if required for additional child tax credit)
Do not attach Forms 1095-A, 1095-B, or 1095-C to your return. Use paper clips, not staples.
Form-Specific Limitations
Cannot use Form 1040A if you:
- Have business income or self-employment net earnings of $400 or more
- Itemize deductions instead of claiming the standard deduction
- Have capital gains requiring Schedule D (amounts in Form 1099-DIV boxes 2b, 2c, or 2d)
- Report investment income exceeding certain thresholds with earned income credit
- Owe household employment taxes
- Must file Form 1040 for health coverage tax credit
- Are you a nonresident alien at any time during 2016 (must file Form 1040NR instead)
Key 2016 Updates
Health Coverage Individual Responsibility Payment: The shared responsibility payment amount increased for 2016. Taxpayers must report coverage status on line 38, continuing the requirement first established in 2014.
Premium Tax Credit Reconciliation: Form 8962 attachment remains mandatory for all taxpayers who received advance premium tax credit payments through the Health Insurance Marketplace. Line 29 reports excess advance premium tax credit repayment; line 45 reports net premium tax credit.
Delayed Refunds: Due to changes in law, the IRS cannot issue refunds before February 15, 2017, for returns claiming the Earned Income Credit or Additional Child Tax Credit. This applies to the entire refund, not just the portion associated with these credits.
Electronic Filing PIN Discontinued: The Electronic Filing PIN is no longer available for use. To validate your electronic signature, use your prior-year adjusted gross income or prior-year self-select PIN.
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This checklist is for educational purposes only and does not constitute tax or legal advice. Always review official IRS instructions and consult a qualified professional for guidance.
