The taxpayer has to use Form 1040 if any of the following apply:

1. The taxpayer received any of the following types of income:

• Income from self-employment (business or farm income).
• Certain tips the taxpayer did not report to the employer. 
• Nondividend distributions (Form 1099-DIV) required to be reported as capital gains.
• Income received as a partner in a partnership, shareholder in an S corporation, or a beneficiary of an estate or trust.
• Tax-exempt interest from private activity bonds issued after August 7, 1986.

2. The taxpayer received or paid interest on securities transferred between interest payment dates.
3. The taxpayer can exclude either of the following types of income:

• Foreign earned income received as a U.S. citizen or resident alien.
• Certain income received from sources in a U.S. possession if the taxpayer was a bona fide resident of American Samoa for all of 2005.

4. The taxpayer has an alternative minimum tax adjustment on stock acquired from the exercise of an incentive stock option.
5. The taxpayer had a financial account in a foreign country, such as a bank account or securities account.

 Exception. If the combined value of the accounts was $10,000 or less during all of 2005 or if the accounts were with a U.S. military banking facility operated by a U.S. financial institution, the taxpayer may file Form 1040A.

6. The taxpayer received a distribution from a foreign trust.
7. The taxpayer owes the excise tax on insider stock compensation from an expatriated corporation.
8. The taxpayer is reporting original issue discount (OID) in an amount more or less than the amount shown on Form 1099-OID.
9. The taxpayer owes household employment taxes.
10. The taxpayer is eligible for the health coverage tax credit. 
11. The Form W-2 shows an amount in box 12 with a code Z.