1040 Format Change for 2018

[DAYDREAMER]

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.

 

[Which Roger]

Where did you find this?

 

[DAYDREAMER]

Where did you find this?

Look up 2018 1040 forms. You'll see the drastic change!

 

[DAYDREAMER]

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!

 

[beowulf]

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. $________

 

[GrayHare]

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.

 

[Sue J]

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.

 

[sengsational]

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.

 

[target2019]

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...

 

[Another Reader]

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.

 

[PatrickA5]

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.

 

[bingybear]

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.

 

[Free To Canoe]

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.

 

[Fedup]

I’m going to let TurboTax fill this out for me.

 

[W2R]

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.

 

[scrabbler1]

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.

 

[PatrickA5]

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.

 

[DAYDREAMER]

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"

 

[Souschef]

At first glance, I did not see a line to input Estimated Tax payments.

 

[beowulf]

But it is still two pages.

 

[DAYDREAMER]

I have a gut feeling IRS 2018 forms (version 1.0) will be a programming nightmare for the IRS. There will be unintended complications due to the simpler forms!

This lack of confidence in IRS programmers stems from the few times I've dealt directly with their help center, and getting the response--- "I'm sorry sir for the error. Our program spits it out that way"

 

[SecondCor521]

At first glance, I did not see a line to input Estimated Tax payments.

Schedule 5 Line 66, which flows to Form 1040 Line 17.

 

[Fedup]

I have a gut feeling IRS 2018 forms (version 1.0) will be a programming nightmare for the IRS. There will be unintended complications due to the simpler forms!

This lack of confidence in IRS programmers stems from the few times I've dealt directly with their help center, and getting the response--- "I'm sorry sir for the error. Our program spits it out that way"

They even lost my 1040x form twice. I asked them what’s the reason for the tax, they had no answer, told me to file again, lost again. They end up with $240 to their favor.

 

[imoldernu]

Numbers from Forbes for 2018 taxes...https://www.forbes.com/sites/kellyphillipserb/2017/12/17/what-the-2018-tax-brackets-standard-deduction-amounts-and-more-look-like-under-tax-reform/#606815814017

Looks like another year I won't be able to help the government. 17th year in a row where they won't want my money. Helps being poor.

 

[Fedup]

You’re bragging or is it gloating.