How Now, New 1040?

The Internal Revenue Service is streamlining again for the 2019 tax filing season. Its basic form for individual taxpayers, the IRS Form 1040, is a bit shorter and has some convenient changes.  Among them, the tax agency has trimmed the paperwork by dropping three numbered schedules from its main package.  The 1040 for 2018 included six of those related schedules.

The IRS did help senior citizens with a new, optional twist. Taxpayers who are 65 and older – born before Jan. 2, 1955 – can choose a customized version named. the “1040-SR.”  One convenience is a handy chart showing standard deduction amounts with age and blindness conditions included. Otherwise, it’s pretty much the new 1040 with bigger print.  

Which version should you senior taxpayers use?  Take your pick. The IRS says it will accept either the new 1040 or the 1040-SR.

The IRS did add a new report aimed at investors in its new 1040 package.  The first question on Schedule 1 asks about any investments in “virtual currency,” also known as cryptocurrency. The IRS has been focusing on those digital deals recently. 

The 2019 model of the 1040 can be more convenient for some taxpayers. Others will need to delve deep into underlying tax issues to fill out their 1040s.  Feel free to contact EricJohn Ltd. owner Eric Buechler for guidance or for full preparation of your 2019 tax return.

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