Tax season will be here before you know it, but with the introduction of a new 1040 individual tax form by the Internal Revenue Service (IRS), we hope things will be a little different, for all individual filers. Because tax season is hard enough as it is without having to deal with a new tax forms, the tax experts at SD Associates have outlined everything you need to know about the new 1040 tax form, so there’ll be no surprises when April 15th rolls around.
The New Version is Supposed to Be Simpler
Looking to make things easier for taxpayers, the IRS has shortened and simplified the 1040 tax form for the 2019 tax season. To enable 150 million taxpayers to use the same form, the prior three versions of the 1040 tax forms have been consolidated into one, streamlined form. Despite this change, the IRS will still be able to obtain the information they need to determine each taxpayer’s tax liability or refund.
It’s Replacing the 1040-A and 1040-EZ
If you were confused in past tax seasons about whether you should fill out the 1040, 1040-A or 1040-EZ form, the IRS has eliminated this confusion—by eliminating the 1040-A and 1040-EZ forms altogether. Prior to this year, the 1040 was considered the standard form, the 1040-A was for relatively simple tax situations (i.e. not owning a business, no itemizing deductions and having taxable income under $100K) and the 1040-EZ was for the simplest tax situations.
It Features New Tax Tables
In addition to the change in tax forms, there will be new tax tables that you will be subject to.
Certain Tax Items Have Been Eliminated
Due to the new Tax Cuts and Jobs Act, there are a few things that will no longer appear on the 1040 form—these include: the alimony deduction, the personal exemption, moving expenses deduction and miscellaneous deductions (as noted on schedule A).
Still confused by the new 1040 tax form? Let the tax experts at SD Associates take care of your taxes for you! From tax planning to creating a strategy, maximizing tax deductions to finding eligible tax credits, the extensive tax services offered by the SD Associates team will ensure your 2019 tax season is stress-free and achieves all of your tax goals. Contact us today!