Join Early Retirement Today
Reply
 
Thread Tools Search this Thread Display Modes
1040 Format Change for 2018
Old 10-21-2018, 09:38 AM   #1
Recycles dryer sheets
 
Join Date: Mar 2008
Posts: 280
1040 Format Change for 2018

Expect to see changes to your 1040 forms, and how you report information. Became aware of the changes when researching how my 2018 taxes will work out. The 1040 form is only one page now, seeming to be made simpler. However, if you have income beyond w2 wages, they added another layer of forms (sheets). All the schedules seem to be the same, but everything is in draft form, and format is in flux right now.

IRS better kick it into high gear to finish up all the forms and update the instruction pamphlets to be ready for tax time. The instructions for the schedule forms still have call outs referring back to the old 1040 line items.

I found the "simpler" version to be a total mess due to having other than w2 wages to report.
__________________

DAYDREAMER is offline   Reply With Quote
Join the #1 Early Retirement and Financial Independence Forum Today - It's Totally Free!

Are you planning to be financially independent as early as possible so you can live life on your own terms? Discuss successful investing strategies, asset allocation models, tax strategies and other related topics in our online forum community. Our members range from young folks just starting their journey to financial independence, military retirees and even multimillionaires. No matter where you fit in you'll find that Early-Retirement.org is a great community to join. Best of all it's totally FREE!

You are currently viewing our boards as a guest so you have limited access to our community. Please take the time to register and you will gain a lot of great new features including; the ability to participate in discussions, network with our members, see fewer ads, upload photographs, create a retirement blog, send private messages and so much, much more!

Old 10-21-2018, 09:40 AM   #2
Full time employment: Posting here.
 
Join Date: Jun 2013
Posts: 704
Where did you find this?
__________________

Which Roger is offline   Reply With Quote
Old 10-21-2018, 09:49 AM   #3
Recycles dryer sheets
 
Join Date: Mar 2008
Posts: 280
Quote:
Originally Posted by Which Roger View Post
Where did you find this?
Look up 2018 1040 forms. You'll see the drastic change!
DAYDREAMER is offline   Reply With Quote
Old 10-21-2018, 09:50 AM   #4
Recycles dryer sheets
 
Join Date: Mar 2008
Posts: 280
https://www.irs.gov/pub/irs-dft/f1040--dft.pdf

I highly recommend everybody learn the new format. If you have rentals or investment income or anything different than W2 wages, you'll want to preliminarily go through all the forms to understand how to report. It gets confusing fast!
DAYDREAMER is offline   Reply With Quote
Old 10-21-2018, 10:20 AM   #5
Full time employment: Posting here.
beowulf's Avatar
 
Join Date: Oct 2007
Posts: 574
Summary of the new form

In order to simplify tax collections in 2019, the IRS will issue
a new easier to use tax form. They call it the 1040 Xtra EZ. After your
name, address, and Social Security number, it has only four lines on two
pages:

1040 Xtra EZ To Do Tax Form

Page I.

1. How much money did you make this year? $________

2. SEND IT IN. $________

Page II

1. Take out a loan for more.

2. Send it all to us. $________
__________________
Mission accomplished - not necessarily ER, but certainly R.
beowulf is offline   Reply With Quote
Old 10-21-2018, 10:22 AM   #6
Thinks s/he gets paid by the post
 
Join Date: Nov 2011
Posts: 2,738
The way the 1040 was simplified was to move many line items to numbered Schedules. The FIRE crowd will likely need to use one or more of these new Schedules.
GrayHare is offline   Reply With Quote
Old 10-21-2018, 10:29 AM   #7
Thinks s/he gets paid by the post
 
Join Date: Feb 2007
Posts: 2,603
So things like IRA deduction, HSA deduction etc must be on a separate schedule.

I guess the new format simplifies things for a significant percentage of taxpayers. The rest of us will have a few extra pages.

I think we will still be able to file without buying software. Should be interesting.
__________________
Married, both 63. DH retired June, 2010. I have a pleasant little part time job.
Sue J is offline   Reply With Quote
Old 10-21-2018, 10:30 AM   #8
Thinks s/he gets paid by the post
sengsational's Avatar
 
Join Date: Oct 2010
Posts: 4,580
Ah, the IRS has pulled a page from the Microsoft play book: rearrange the everything on the surface and tie that into the existing ancient structure underneath.
sengsational is offline   Reply With Quote
Old 10-21-2018, 10:31 AM   #9
Thinks s/he gets paid by the post
target2019's Avatar
 
Join Date: Dec 2008
Posts: 4,281
Rather than play a game of tease, here is a link to draft instructions:
https://www.irs.gov/pub/irs-dft/i1040gi--dft.pdf
I don't see much that would cause a lot of learning for taxpayer. OTH, the software companies have some work to do...
target2019 is offline   Reply With Quote
Old 10-21-2018, 10:35 AM   #10
Thinks s/he gets paid by the post
 
Join Date: Jan 2013
Posts: 1,653
Quote:
Originally Posted by DAYDREAMER View Post
https://www.irs.gov/pub/irs-dft/f1040--dft.pdf

I highly recommend everybody learn the new format. If you have rentals or investment income or anything different than W2 wages, you'll want to preliminarily go through all the forms to understand how to report. It gets confusing fast!
That's what I pay the CPA to do. He can explain it to me next year, once the return is finished.
Another Reader is offline   Reply With Quote
Old 10-21-2018, 10:50 AM   #11
Recycles dryer sheets
 
Join Date: Nov 2006
Posts: 376
TurboTax says my download will be available on Nov 7th - only a couple of weeks from now. We'll see if they can make that date.
PatrickA5 is offline   Reply With Quote
Old 10-21-2018, 10:53 AM   #12
Thinks s/he gets paid by the post
 
Join Date: Dec 2014
Posts: 2,071
Quote:
Originally Posted by PatrickA5 View Post
TurboTax says my download will be available on Nov 7th - only a couple of weeks from now. We'll see if they can make that date.
they may have a download, but they may have preliminary forms or just placeholders.
bingybear is offline   Reply With Quote
Old 10-21-2018, 11:05 AM   #13
Thinks s/he gets paid by the post
Free To Canoe's Avatar
 
Join Date: May 2008
Location: Cooksburg,PA
Posts: 1,765
Quote:
Originally Posted by DAYDREAMER View Post
https://www.irs.gov/pub/irs-dft/f1040--dft.pdf

I highly recommend everybody learn the new format. If you have rentals or investment income or anything different than W2 wages, you'll want to preliminarily go through all the forms to understand how to report. It gets confusing fast!
Why learn the new format when it is going to change. They don't have a line for schedule 1 income to come over yet. Looks messy and unresolved so far. I guess it will be ready by December, 31st.
__________________
Free to canoe
Free To Canoe is offline   Reply With Quote
Old 10-21-2018, 11:06 AM   #14
Thinks s/he gets paid by the post
Fedup's Avatar
 
Join Date: Mar 2014
Location: Southern Cal
Posts: 4,032
I’m going to let TurboTax fill this out for me.
__________________
Just another day in paradise
Fedup is offline   Reply With Quote
Old 10-21-2018, 11:12 AM   #15
Moderator Emeritus
W2R's Avatar
 
Join Date: Jan 2007
Location: New Orleans
Posts: 41,070
Quote:
Originally Posted by Fedup View Post
I’m going to let TurboTax fill this out for me.
+1

I will be purchasing the TurboTax CD version as always, and expect to download some substantial TurboTax updates between the time that I buy it (usually December) and the time when I actually get around to doing my taxes (usually February).

Then after they are done and sent in, hopefully I'll be able to find my AGI somewhere on the new forms so that I can record that in my spreadsheets.
__________________
100% retired since 2009 and never plan to work for anybody ever again, paid or not. Retirement funded by Social Security, mini-pension, and investments (AA 45:55, mostly Vanguard). Debt free with no mortgage and over-the-moon happy to be retired.
W2R is offline   Reply With Quote
Old 10-21-2018, 11:33 AM   #16
Thinks s/he gets paid by the post
 
Join Date: Nov 2009
Posts: 4,511
Quote:
Originally Posted by DAYDREAMER View Post
Expect to see changes to your 1040 forms, and how you report information. Became aware of the changes when researching how my 2018 taxes will work out. The 1040 form is only one page now, seeming to be made simpler. However, if you have income beyond w2 wages, they added another layer of forms (sheets). All the schedules seem to be the same, but everything is in draft form, and format is in flux right now.

IRS better kick it into high gear to finish up all the forms and update the instruction pamphlets to be ready for tax time. The instructions for the schedule forms still have call outs referring back to the old 1040 line items.

I found the "simpler" version to be a total mess due to having other than w2 wages to report.
The 4 types of nonwage income shown on the shrunken 1040 are:

(1) Interest
(2) Dividends
(3) IRA/Pensions/Annuities
(4) SS Benefits

My biggest beef was that cap gains were not among this list. I sent an email to the IRS earlier this year after I first saw this draft complaining about it.

I made one sale of shares of a mutual fund this year. This alone will trigger Form 8949, Schedule D (both forms were needed anyway), and now Schedule 1. It was bad enough to need 8949 and Sched D, but now I will have to transfer one crummy number to Sched 1 so it can go onto 1040. Three forms for one lousy sale of shares. It will also require the cumbersome QDLTCG worksheet although my QD already triggered that one.
__________________
Retired in late 2008 at age 45. Cashed in company stock, bought a lot of shares in a big bond fund and am living nicely off its dividends. IRA, SS, and a pension await me at age 60 and later. No kids, no debts.

"I want my money working for me instead of me working for my money!"
scrabbler1 is offline   Reply With Quote
Old 10-21-2018, 11:39 AM   #17
Recycles dryer sheets
 
Join Date: Nov 2006
Posts: 376
Quote:
Originally Posted by scrabbler1 View Post
The 4 types of nonwage income shown on the shrunken 1040 are:

(1) Interest
(2) Dividends
(3) IRA/Pensions/Annuities
(4) SS Benefits

My biggest beef was that cap gains were not among this list. I sent an email to the IRS earlier this year after I first saw this draft complaining about it.

I made one sale of shares of a mutual fund this year. This alone will trigger Form 8949, Schedule D (both forms were needed anyway), and now Schedule 1. It was bad enough to need 8949 and Sched D, but now I will have to transfer one crummy number to Sched 1 so it can go onto 1040. Three forms for one lousy sale of shares. It will also require the cumbersome QDLTCG worksheet although my QD already triggered that one.
But, if you meet all of the requirements for a simple form it will fit on a postcard! I'm pretty sure that's the only reason the IRS is "simplifying" the tax forms.
PatrickA5 is offline   Reply With Quote
Old 10-21-2018, 11:48 AM   #18
Recycles dryer sheets
 
Join Date: Mar 2008
Posts: 280
Quote:
Originally Posted by PatrickA5 View Post
But, if you meet all of the requirements for a simple form it will fit on a postcard! I'm pretty sure that's the only reason the IRS is "simplifying" the tax forms.
I think you nailed the intention of the 1040.

IRS Boss--"Make it fit on one page because that's what our politicians are telling us to do. Make it fit on a post card!"

IRS workerbee-----"But boss, our tax code is more complicated than that to fit on a post card"

IRS Boss--- "Throw all the rest of the issues on separate Schedules. Get me one page 1040 NOW!"

IRS workerbee----"Alright here it comes"
DAYDREAMER is offline   Reply With Quote
Old 10-21-2018, 12:13 PM   #19
Thinks s/he gets paid by the post
Souschef's Avatar
 
Join Date: Dec 2015
Location: Santa Paula
Posts: 1,856
At first glance, I did not see a line to input Estimated Tax payments.
__________________
Retired Jan 2009 Have not looked back.
AA 50/45/5 considering SS and pensions a SP annuity
WR 2% SI 2SS & 2 Pensions
Souschef is offline   Reply With Quote
Old 10-21-2018, 12:16 PM   #20
Full time employment: Posting here.
beowulf's Avatar
 
Join Date: Oct 2007
Posts: 574
But it is still two pages.
__________________

__________________
Mission accomplished - not necessarily ER, but certainly R.
beowulf is offline   Reply With Quote
Reply


Currently Active Users Viewing This Thread: 1 (0 members and 1 guests)
 
Thread Tools Search this Thread
Search this Thread:

Advanced Search
Display Modes

Posting Rules
You may not post new threads
You may not post replies
You may not post attachments
You may not edit your posts

BB code is On
Smilies are On
[IMG] code is On
HTML code is Off
Trackbacks are Off
Pingbacks are Off
Refbacks are Off


Similar Threads
Thread Thread Starter Forum Replies Last Post
2018 1040 Draft form bizlady FIRE and Money 14 06-27-2018 05:55 PM
2018 1040 Tax spreadsheet Clone FIRE and Money 4 12-24-2017 09:09 AM
Change the date display format on threads? ERD50 Forum Admin 4 10-06-2014 08:03 PM
Yet another request: free-format space for "User-FAQ" profile comments Nords Forum Admin 2 01-30-2008 11:39 PM

» Quick Links

 
All times are GMT -6. The time now is 05:00 AM.
 
Powered by vBulletin® Version 3.8.8 Beta 1
Copyright ©2000 - 2018, vBulletin Solutions, Inc.