taxes

IRS Remodels the 1040 for 2019

The IRS is reducing the number of schedules and improving the form to make it less confusing.

As a new 1040 form tailored to seniors makes its debut, the regular 1040 is getting remodeled for 2019.

After the 1040's major overhaul last year to take into account tax reform, some taxpayers told the IRS that they found the redesigned forms confusing. In response, the agency is attempting to improve the 1040 with a variety of tweaks. An overview of expected changes was presented at the IRS Nationwide Tax Forum in National Harbor, Md., in early July.

One big change is a reduction of the schedules. Six new schedules that appeared in 2018 will be whittled down to three for 2019. Some of the schedules will be combined, while some information will return to the base 1040 form.

There will be a new line for capital gains on the 1040, and IRA distributions will get their own line separate from pensions and annuities. An addition to Schedule 1 is a space to enter "date of divorce," which accommodates the change in tax treatment of alimony enacted by tax reform.

Tax reform also created the qualified business income deduction, which gets its own forms in 2019. Form 8995 will be for the simple version of the QBI deduction that is available to taxpayers below certain income thresholds, while Form 8995-A will be for taxpayers subject to the more complex QBI computation.

And, in an effort to modernize, the decimal places for cents are being removed from each line. The IRS says most people round, and the extra room allows for other information to be made larger or clearer. But if you want to stick to tradition and include cents on each line, Uncle Sam says have at it.

Most Popular

Your Guide to Roth Conversions
Special Report
Tax Breaks

Your Guide to Roth Conversions

A Kiplinger Special Report
February 25, 2021
The 12 Best Tech Stocks to Buy for 2022
tech stocks

The 12 Best Tech Stocks to Buy for 2022

The best tech-sector picks for the year to come include plays on some of the most exciting emergent technologies, as well as several old-guard mega-ca…
January 3, 2022
How to Know When You Can Retire
retirement

How to Know When You Can Retire

You’ve scrimped and saved, but are you really ready to retire? Here are some helpful calculations that could help you decide whether you can actually …
January 5, 2022

Recommended

12 Questions Retirees Often Get Wrong About Taxes in Retirement
retirement

12 Questions Retirees Often Get Wrong About Taxes in Retirement

You worked hard to build your retirement nest egg. But do you know how to minimize taxes on your savings?
January 21, 2022
14 IRS Audit Red Flags for Retirees
retirement

14 IRS Audit Red Flags for Retirees

Seniors beware: Your actions can increase the chances of the IRS giving your tax return a closer look.
January 21, 2022
"Tax Preparers Near Me"? There's a Better Way to Find a Tax Professional
taxes

"Tax Preparers Near Me"? There's a Better Way to Find a Tax Professional

Here are 5 tips for weeding out the fly-by-night tax preparers and zeroing in on the best tax professionals in your area.
January 21, 2022
2021 Tax Returns: What's New on the 1040 Form This Year
tax filing

2021 Tax Returns: What's New on the 1040 Form This Year

Don't get caught off guard this tax season. Familiarize yourself with potential changes for your 2021 tax return before tackling your 1040.
January 21, 2022