What is the New IRS 1040 Form?
For the upcoming tax season, the IRS Form 1040 has changed forever. This goes back to the Tax Cuts and Jobs Act (TCJA), where Americans with simple tax affairs can file their taxes on a form that’s the size of a large postcard.
However, it should be said that online tax filers may not notice any changes at all, so they won’t need to do anything different.
The IRS has worked in collaboration with many tax preparation partners and brands to ensure these changes go through as easily as possible. In this guide, you’re going to learn about the five big things that have changed with Form 1040.
Table of Contents
One 1040 Form for All
The new 1040 has been brought in as a replacement for the original 1040, 1040A, and 1040EZ. These forms no longer exist.
Every taxpayer will have to file with the new Form 1040, regardless of their circumstances.
What if I Used the Old Forms?
The old 1040 used to be complicated, which is why 1040EZ and 1040A was used. But with the simplification of the classic 1040, this is no longer necessary.
If you used these old forms, you’ll now be expected to use the new Form 1040.
The Building Block Approach
The idea behind the Building Block philosophy is to allow taxpayers to add any schedules they need to the Form 1040. This streamlines the tax filing process and ensures you only come into contact with the forms you actually need.
Some Things Have Moved
The most commonly used lines on the old 1040 are still in place. However, other lines have been incorporated into different schedules. These may include things like income adjustments, payments, refundable credits, and other tax deductions.
Most Taxpayers Won’t Need the Schedules
The intention behind these changes is to ensure that taxpayers with simple tax affairs no longer need to worry about using schedules. They can just use the double-sided 1040.
Most taxpayers won’t need to use any schedules when they file their taxes.
What Do Online Filers Need to Know?
So those are your five facts. But for online filers, they shouldn’t need to make any changes at all. Since they’re using specialized software, the right information will be automatically populated into the relevant forms.
Anyone using a paper form should consider moving to online filing so they can simplify the entire process.
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Frank Ellis is a Traverse City Tax Preparation Planner and published author. He has written tax and finance related articles for twelve years and has published over 1000 articles on leading financial websites.