1040A Line 7 Overview

Part of the Video Series How to Complete a 1040A Tax Form

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Tax help! How to complete the Income Section of a 1040A tax form in this free video on tax help and personal finance.

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1040A Line 7 Overview
In this section we're going to talk about income. In specifically lines 7, Wages, salaries, and tips. Most, for most people you'll get your income information from your W-2. And you'll find that in box 1 wages, tips, and other compensation and you'll also see box 2 which is federal income tax withheld and you'll need that information as well. The IRS wants you to report tip income, so any tip income that you did not report to your employer must be included in your total on line 7. You also will report dependent care benefits which will be shown in box 10 of your form W-2. If you have a scholarship or fellowship grant, you do need to include this on line 7. But, if you are a degree candidate, you only include the amount you used for expenses other than tuition and course-related expenses. So in other words your tuition and books are not taxed here. If you have income from a disability pension this will be shown on your form 1099-R if you have not reached the minimum retirement age set by your employer, and this must be included on line 7 as well. This is a form 1099-R and you'll be able to determine what you need to include by the taxable amount in box 2a.

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Expert: Tom Noah has been a Certified Public Accountant (CPA) for over 27 years. Read More