The information in this article is up to date through tax year 2019 (taxes filed in 2020).
The Tax Cuts and Jobs Act (TCJA) sparked many changes to the American tax code. Some of those changes were intended to simplify tax filing, beginning with a more compact Form 1040.
What’s new about the 1040 in 2020?
The IRS is releasing a new Form 1040-SR U.S. Tax Return for Seniors. It’s specially designed to help senior citizens age 65 and up who are filing returns on their own. The form will debut in the 2020 tax season (for 2019 tax returns).
How does the 1040-SR make tax filing easier for senior citizens?
- The 1040-SR has lines for reporting retirement income like Social Security, IRA distributions, pensions, and annuities. This means you won’t have to search for and complete additional schedules just to cover all your income.
- A standard deductions chart appears directly on the form, which makes it easier to calculate your refund if you are owed one.
- The font on the form is larger, and the shading around the boxes was removed to make it easier to read – compared to the traditional 1040.
How did the Tax Cuts and Jobs Act Change the Form 1040?
The 1040 is approximately the size of a postcard. If your tax situation is straightforward, it is the only form you will need. Taxpayers with more complex situations will use schedules to provide additional tax information.
There are now just 23 lines on the Form 1040, instead of 79. Because the new tax act reduced or eliminated many deductions, several line items have likewise been removed or consolidated.
This single form takes the place of Form 1040, the 1040A and the 1040EZ. All tax filers are able to use the same 1040 Income Tax Form.
What’s easier than filing a paper return?
Filing online! TaxSlayer makes it easy to enter your income and expense information for the whole year. Just follow the step-by-step instructions and let TaxSlayer do the rest. We find all your credits and deductions – guaranteed. You’ll pay only what you owe and get the max possible refund you deserve.
Here are the Top Five Reasons to File Your Taxes Online.
Visit TaxSlayer today and start your online tax return for free.
This article was last updated on 01/09/2020.