The IRS recently released its new 1040 tax return for 2018, calling it a simplification from thanks to federal tax reform.
Over at the TaxBuzz Blog, Lee Reams doesn’t seem to think it’s all that simpler.
“When you compare the prior 1040 to the new 2018 version, an educated eye can very clearly see that the IRS just divided the traditional 2-page 1040 into what everyone is touting as a simplified 1040 with two half-size sheet pages, along with the frequently unmentioned six separate schedules that include all of the lines deleted from the prior 1040,” he writes.
He notes that the new 1040 is only four lines smaller if you count the six schedules the come with it, and unless you’re retired or a young single wage earner, you’re probably going to have to fill out at least one of these six schedules. Here’s Reems’ breakdown.
- Other income, such as self-employed income, capital gains transactions or rental income, and Adjustments to Income, such as health account contributions, student loan interest, and alimony payments are on Schedule 1.
- Additional Taxes, like the alternative minimum tax, are on the new Schedule 2.
- Nonrefundable Credits, like child care credit and the general business tax credit, are on Schedule 3.
- “Other taxes” are listed on Schedule 4.
- Other payments and refundable credits, for tax credits like prepaid taxes and your 2017 refund, will go on Scheduled5.
- Schedule 6 covers two issues: providing a foreign address, if any, and designating a third party with whom the IRS can discuss the return.