IRS Form 1040 for 2018: easier format and new schedules
This year, 150 million US taxpayers will have to fill out the new IRS Form 1040 – regardless of their incomes or their personal financial situations.
The IRS introduced this document following the release of the Tax Cuts and Jobs Act, which went into effect last January. This new tax form is easier for filings and much shorter, since the IRS got rid of a lot of unneeded lines for tax provisions that don’t exist anymore (at least until the TCJA potentially expires at the end of 2025).
The new IRS Form 1040 works for 65% of taxpayers and replaces several older forms
The new Form 1040 is intended to replace the old 1040, 1040A, and 1040EZ.
The IRS has indicated that it expects about 65 percent of all taxpayers to submit the new 1040 with just one additional schedule.
Only more complicated tax returns will require the new Form 1040 schedules
According to the IRS, for Tax Year 2018, taxpayers will no longer use Form 1040A or Form 1040EZ – but instead will use the redesigned Form 1040. With that said, the IRS still needs all the same tax information from you. The difference is that you’re just not going to put it all in your 1040. A great deal of tax information has been relocated to other forms or schedules that you must include with your tax return when you file.
The IRS calls this a “building block” approach.
For more complicated returns (such as deduction or credit claims, additional taxes, etc) taxpayers will need to complete one or more of the new IRS Form 1040 schedules.
Individuals who electronically filed their federal tax return last year might not notice any changes – since the tax return preparation software will automatically use their previous answers to the tax questions for Form 1040 and any other needed schedules.
The fastest way to file the new Form 1040 is to do it electronically
So, give your nerves a break and save yourself some time by electronically filling out your necessary tax forms (including the new Form 1040). That way, your forms will be received by the IRS immediately – which will provide you with more time to spend on requesting your tax refund.
P.S. Learn more about the deadlines and the documents you’ll need for your business HERE.