Your 1040 form will be looking a little different this year! The tax form got a major makeover and has been reduced to about the size of a postcard. The changes come on the heels of major changes created by the Tax Cuts and Jobs Act and will affect taxpayers this year. The new 1040 form will eliminate the 1040EZ and 1040A forms, meaning all taxpayers use the new form.
The new 1040 form will only have 23 lines for information instead of the previous 79. This is due partly to the fact that there will be several tax deductions missing on the 1040 form. These include the personal exemption, the deduction for moving expenses and a variety of other miscellaneous deductions. These deductions will no longer be available to taxpayers as they were eliminated in the recent tax reform.
You can either file the new 1040 form with e-file or download the form. There are six new schedules that go along with the form that may or may not apply to you. Depending on what type of tax situation you are in and the credits and deductions you claim, you might not have to file for any of these schedules.
- Schedule 1: Is for additional income and adjustments to income. You will file schedule 1 if any of the criteria below apply to you.
- Alimony payments, business income, capital gain and losses, rental income, farm income, prize of gambling winnings, unemployment income, educator expenses, deductible health insurance, student loan interest and deductible health insurance.
- Schedule 2: Is used for alternative minimum tax. You will file schedule 2 if any of the below apply to you.
- Excess advance premium tax and alternative minimum tax.
- Schedule 3: Is used for nonrefundable tax credit. You will file schedule 3 if you want to claim any of the below.
- Foreign tax credit, credit for child and dependent care expenses, education credits, retirement savings contributions credit (the savers credit), residential energy credit and general business credit.
- Schedule 4: Is used to report other taxes. You will file schedule 4 if you owe any of the listed below.
- Self-employment tax, additional taxes on IRA’s retirement, plans, or other tax-favored accounts, household employment taxes, repayment of the first-time homebuyer credit, a penalty for not having health insurance, additional Medicare tax and net investments income tax.
- Schedule 5: Is used for other payments and refundable credit. You will file schedule 5 if you plan on claiming any of the below.
- Claim a refundable tax credit other than the earned income tax credit, American opportunity credit or additional child tax credit, make a tax payment associated with getting an extension or excess social security withheld.
- Schedule 6: Is used for foreign address and third-party designee. You will file schedule 6 if you have any of the below apply.
- Have an address outside the United States or want to allow someone else to discuss your return with the IRS.
If you need help filing the new 1040 form, Polston Tax can help! Our team of tax accountants and CPA are up to date on the latest tax information and can help you navigate all the changes. If you need help filing your tax return, call us at 844-841-9857 or click below to schedule your free consultation!