See the New IRS 1040 Tax Form
The IRS announced in June 2018 that a new 1040 tax form would be released for the 2019 tax year. This initiative goes all the way back to Donald Trump’s campaign trail in 2016, where he wanted to make filing taxes as “simple as sending a postcard.” Well, it looks like he will get his wish based on the latest design draft provided by the IRS.
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What Has Changed on the 1040 Tax Form?
The IRS has said that filing with the new 1040 form replaces the 1040EZ and 1040A forms, so now there is an expanded set of Schedules for different tax filing situations. The IRS states, “This new approach will simplify the previous 1040 so that all 150 million taxpayers can use the same form.”
The cosmetic changes make the form take up less space certainly, as one will notice white spacing has been sacrificed, and many fields have been consolidated. The font is smaller, which might affect the usability and ease of reading the form.
Other changes are reflective of the Tax Cuts and Jobs Act of 2018 bill that was passed, which included more broader changes to the American tax code. This includes removing the personal exemptions section and expanding some of the tax credits available to filers.
Overall, the form will likely simplify the process for many Americans when filing their taxes. One of the most confusing aspects currently in choosing between the 1040A, EZ, and standard form, will now be completely eliminated. However, for individuals and families with more complex filing situations, the introduction of the expanded schedules in the 1040 form might make things more complicated.
Is the IRS Going to Replace the 1040A and 1040 EZ Forms?
Yes, the plan is to make a single 1040 form for all Americans to use when filing. The 1040A and 1040EZ forms at this time appear to be going away. The IRS has denoted that there could be changes and updates to this new proposed design, but this is one of the big components that is not expected to change.
IRS 1040 Tax Form Changes to Schedules
One of the more significant changes to the 1040 form is the new layout and arrangement of the Schedules. Currently, there are numerous “Schedule” forms that supplement the 1040 tax form that address specific tax scenarios. These include:
- Schedule A – Itemized Deductions
- Schedule B – Interest and Ordinary Dividends
- Schedule C – Profit or Loss from Business
- Schedule D – Capital Gains and Losses
- Schedule E – Supplemental Income
- Schedule F – Profit / Loss from Farming
- Schedule H – Household Employment Taxes
- Schedule J – Income Averaging for Farmers and Fisherman
With the new 1040 Tax form, the schedules are being changed from letters to numbers. It also appears that the schedules have been consolidated, looking at the design for the new Schedule 1 – Additional Income and Adjustments to Income. It would appear to combine many of the data points collected on both the Schedule B, D, and E forms.
How Do I Find and File the New 1040 Tax Form?
The new 1040 forms are automatically provided by online tax filing. The tax program will guide you in filling out the correct tax forms, so your return is accurate. You can easily and accurately file your taxes online today.
Taking a quick glance, we can immediately see that the new 1040 tax form is about “half the size” of the current 1040 form. The IRS has indicated that the new 1040 form will also replace the 1040EZ and 1040A forms, so there is an expanded set of Schedules available for different tax filing situations.
SOURCE: http://filemytaxesonline.org/see-the-new-irs-1040-tax-form/ 2020 1040ez