Have you heard? There’s a new 1040 form coming, and it will be available for the 2018 tax year. Here’s a brief summary of the changes to the form.
- The new 1040 replaces the current form, as well as form 1040-A and 1040-EZ. All taxpayers will now be using the same form.
- The new form contains 23 lines; the 1040 for tax year 2017 contained 79 lines.
- More schedules/forms will now be available. According to the IRS (Internal Revenue Service), they used a ‘building block approach’ when drafting these changes. All filers will now use the new 1040, and those with more than the basic details to report will attach one or more schedules or forms to their return.
- At least six new schedules will be available, numbered one through six. Do you remember schedules that are lettered–Schedule A, B, C, etc.? For the most part, they’re still in play, and you can continue to use them to report your 2018 income tax information.
- Here’s an example of how your reporting methods may change. If you claimed an education credit for 2017, it would have been entered on Line 50 of the 1040 form. For the 2018 tax year, if you claim an education credit you’ll complete a Schedule 3 (Nonrefundable Credits), and then include the total from Schedule 3 on Line 12 of the new form.
The purpose of these changes is to make the filing process less burdensome for a great many filers who usually didn’t have any ‘extras’ to report in previous years.
For more information about the changes coming for the 2018 tax year, see these two informative articles at Forbes.com:
Here’s How The New Postcard-Sized 1040 Differs From Your
Current Tax Return
IRS Announces 2018 Tax Rates, Standard Deductions, Exemption Amounts And More
*All information is based on IRS drafts of 2019 tax forms and is subject to change.