IRS Releases Shorter Form 1040 and Schedules for Upcoming Tax Season
posted Jan 24, 2019 by Laura H. Yalanis, CPA, MST in the Global Tax Blog
The Internal Revenue Service has redesigned the Form 1040 for this upcoming tax season, along with six related tax schedules. The changes are a result of 2017’s Tax Cuts and Jobs Act (TCJA) which promised to simplify the tax preparation process.
1040—some key things to note
Form 1040 is used by U.S. taxpayers to file their annual income tax returns. Some taxpayers (with certain types of income or deductions) are required to complete tax schedules in addition to their 1040s.
Who might this include? Taxpayers with significant amounts of interest income, mortgage interest or charitable contributions are a few examples.
The revised form is not postcard sized, as originally proposed, but it is considerably shorter than last year’s form. Depending on the taxpayer’s circumstances, six additional schedules may need to be filed along with the Form 1040.
Below is a helpful chart created by the IRS to decide if you need to file an additional schedule
|If You ...||Then Use...|
|Have additional income, such as capital gains, unemployment compensation, prize or award money, gambling winnings. Have any deductions to claim, such as student loan interest deduction, self-employment tax, educator expenses.||
|Owe AMT or need to make an excess advance premium tax credit repayment.||Schedule 2|
|Can claim a nonrefundable credit other than the child tax credit or the credit for other dependents, such as the foreign tax credit, education credits, or a general business credit||Schedule 3|
|Owe other taxes, such as self-employment tax, household employment taxes, additional tax on IRAs or other qualified retirement plans and tax-favored accounts.||Schedule 4|
|Can claim a refundable credit other than the earned income credit, American opportunity credit, or additional child tax credit. Have other payments, such as an amount paid with a request for an extension to file or excess social security tax withheld.||Schedule 5|
|Have a foreign address or a third-party designee other than your paid preparer.||Schedule 6|
The IRS will begin accepting 2018 returns January 28th, 2019. Check out our blog, 2018 Tax Filing Season Begins January 28th, IRS Confirms.
Questions on the revised Form 1040? Contact us.
The TCJA…So Many Changes, So Many Questions…we can help you navigate this huge tax overhaul! Visit our Tax Reform Center for everything you and your business need to know, now.