IRS Drafting New Version of Form 1040 - Martin Hood LLC
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IRS Drafting New Version of Form 1040

To go along with the recent tax reform, the IRS is currently drafting a new version of the Form 1040. What exactly is expected to change from the 2017 to the 2018 Individual Income Tax Return? The new draft will be two half-pages that eliminate over 50 lines from the 2017 Form 1040. The first page of the draft will include information about the taxpayer and their dependents, with the second page including figures related to taxable income, deductions, credits, and taxes paid.

 

The 2018 Form 1040 moves lines originally on the first page of the 2017 Form 1040 to attached new schedules. Schedule 1 will include Additional Income and Adjustments to Income (previously lines 10 through 37) containing alimony received, farm income, and student loan interest paid. Nonrefundable Credits, or Schedule 3, is expected to combine lines 48 through 55 of the 2017 Form 1040, with credits for child care expenses and education. Other attached new schedules include 2 that simplifies Tax (lines 44 through 47), 4 for Other Taxes (lines 57 through 63), 5 to help simplify Payments and Refundable Credits (lines 65 through 74), and 6 for Foreign Address/Third Party Designee information.

 

These new proposed schedules will still include references to existing schedules from 2017 including Schedule A (itemized deductions), Schedule C (Profit or Loss From Business) and Schedule D (Capital Gains and Losses). The draft for the 2018 Form 1040 has not been posted to the IRS website, so other schedules like Schedule B (Interest and Ordinary Dividends) have yet to be mentioned on the new 1040 or related schedules.

 

For more information, see article from Journal of Accountancy.