A new look for the 1040?
July 12, 2018 6:34 PM
Olivier Douliery/Bloomberg
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In late June, the Internal Revenue Service and the Treasury Department unveiled a new, postcard-sized version of the classic Form 1040, with the goal of replacing the current 1040, and the current Form 1040A and Form 1040EZ, for next tax season. It takes a “building block” approach, according to the IRS, removing all information that isn’t strictly necessary, and placing it on a series of supplemental schedules.
The IRS is accepting comments on the proposed form and schedules for the next couple of weeks atWI.1040.Comments@IRS.gov . It expects to release revised proposals after that.
The IRS is accepting comments on the proposed form and schedules for the next couple of weeks at
The front of the postcard
Note that while the form is postcard-sized, it asks for the taxpayer’s Social Security number, and so would need to be mailed in a closed envelope.
The back of the postcard
This side is primarily dedicated to reporting income, and claiming the taxpayer’s refund.
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Schedule 1: Additional Income and Adjustments to Income
This is for reporting additional income, such as taxable refunds, credits or other offsets of state and local income taxes; alimony received; business income or losses (which would require attaching a Schedule C or C-EZ); rental, royalty, partnership and other income (attaching a Schedule E; farm income (attaching a Schedule F); and unemployment compensation.
The adjustments to income include educator expenses; certain expenses for service members; the deductible part of self-employment tax; and more.
The adjustments to income include educator expenses; certain expenses for service members; the deductible part of self-employment tax; and more.
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Schedule 2: Tax
Taxes on children’s unearned income are to be reported here, along with taxes on lump-sum distributions, the Alternative Minimum Tax, and – interestingly – the excess advance premium tax credit from the Affordable Care Act, which requires attaching Form 8962.
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Schedule 3: Nonrefundable Credits
Among the credits to be claimed here are the credit for child and dependent care expenses (which would require attaching Form 2441); the Child Tax Credit; the Residential Energy Credit (attaching Form 5695); and credit for prior-year minimum tax.
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Schedule 4: Other Taxes
Included here are the self-employment tax, Social Security and Medicare taxes on tip income not reported to the taxpayer’s employer, and uncollected Social Security and Medicare taxes on wages, as well as the additional Medicare tax and the net investment income tax.
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Schedule 5: Other Payments and Refundable Credits
Right now this schedule has a number of lines reserved for future purposes, but it also includes 2018 estimated tax payments and the amount applied to the 2017 return, the net premium tax credit, and other assorted payments and credits.
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Schedule 6: Foreign Address and Third Party Designee
The shortest of the schedules, this is where taxpayers can give preparers “checkbox authority,” and report a foreign address.
