IRS publishes draft 2018 1040 - Huge changes made

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DrCheese
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IRS publishes draft 2018 1040 - Huge changes made

Post by DrCheese » Tue Jun 26, 2018 6:08 am

https://www.nytimes.com/2018/06/25/your ... tcard.html

It is now just one page instead of two. However the IRS has added six new schedules.

The new form is meant to replace the 1040, 1040A and 1040EZ.
Last edited by DrCheese on Tue Jun 26, 2018 7:13 am, edited 1 time in total.

retiredjg
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Re: IRS published draft 2018 1040 - Huge changes made

Post by retiredjg » Tue Jun 26, 2018 7:04 am

Oh my, so much new stuff to learn. Methinks this will be a mess for awhile.:happy

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PrettyCoolWorkshop
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Re: IRS publishes draft 2018 1040 - Huge changes made

Post by PrettyCoolWorkshop » Tue Jun 26, 2018 7:30 am

The elimination of the 1040A and 1040EZ will create changes in the simplified needs test for the FAFSA and I am sure it will create other ripple effects as well. It will be interesting to see how the simplified needs test changes.
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Re: IRS publishes draft 2018 1040 - Huge changes made

Post by livesoft » Tue Jun 26, 2018 7:32 am

If I was doing this, I would hide all the bad stuff on secondary schedules and forms, but put all the good stuff right on the first page, you know, a quadruple height line for deductions and tax credits right up front and on the back a half-size line for the actual tax followed by a quadruple height line for refund, too.
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The Wizard
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Re: IRS published draft 2018 1040 - Huge changes made

Post by The Wizard » Tue Jun 26, 2018 7:38 am

retiredjg wrote:
Tue Jun 26, 2018 7:04 am
Oh my, so much new stuff to learn. Methinks this will be a mess for awhile.:happy
Tax software will handle this just fine.
But you're right in that we can't just update the numbers on this year's form from last year's form.

I made a reasonable guess as to my 2018 tax liability a while ago and updated my withholding. Will be interesting next February to see how close I was...
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Sheepdog
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Re: IRS publishes draft 2018 1040 - Huge changes made

Post by Sheepdog » Tue Jun 26, 2018 7:45 am

We may be going to a postcard size form? In the early years, like when I filed my first return in the early 50s, the simple 1040 was just that .... a post card with just a half dozen or so lines. You didn't even have to calculate anything, if you didn't want to. (That was for very low income people like me.)
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Re: IRS publishes draft 2018 1040 - Huge changes made

Post by jebmke » Tue Jun 26, 2018 8:02 am

Has anyone found the Foreign Tax Credit on the new form or any of the schedules?
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feehater
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Re: IRS publishes draft 2018 1040 - Huge changes made

Post by feehater » Tue Jun 26, 2018 8:03 am

So now a self employed person will need to include four extra schedules instead of two? So much simpler!

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Re: IRS publishes draft 2018 1040 - Huge changes made

Post by pokebowl » Tue Jun 26, 2018 8:14 am

feehater wrote:
Tue Jun 26, 2018 8:03 am
So now a self employed person will need to include four extra schedules instead of two? So much simpler!
That is usually the modus operandi of the IRS, take something simple and complicate it. :D
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retiredjg
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Re: IRS publishes draft 2018 1040 - Huge changes made

Post by retiredjg » Tue Jun 26, 2018 8:17 am

pokebowl wrote:
Tue Jun 26, 2018 8:14 am
feehater wrote:
Tue Jun 26, 2018 8:03 am
So now a self employed person will need to include four extra schedules instead of two? So much simpler!
That is usually the modus operandi of the IRS, take something simple and complicate it. :D
It seems likely that the IRS was given a mandate to get this thing postcard sized. What they have produced is likely to be as good as any could have done.

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Re: IRS publishes draft 2018 1040 - Huge changes made

Post by Flobes » Tue Jun 26, 2018 8:39 am

jebmke wrote:
Tue Jun 26, 2018 8:02 am
Has anyone found the Foreign Tax Credit on the new form or any of the schedules?
Schedule 3, Nonrefundable Credits, #48, first line.

annielouise
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Re: IRS published draft 2018 1040 - Huge changes made

Post by annielouise » Tue Jun 26, 2018 8:51 am

The Wizard wrote:
Tue Jun 26, 2018 7:38 am
retiredjg wrote:
Tue Jun 26, 2018 7:04 am
Oh my, so much new stuff to learn. Methinks this will be a mess for awhile.:happy
Tax software will handle this just fine.
But you're right in that we can't just update the numbers on this year's form from last year's form.

I made a reasonable guess as to my 2018 tax liability a while ago and updated my withholding. Will be interesting next February to see how close I was...
I love your faith in the software developers who have a herculean task to complete in a short time. I would plan on the software having lots of errors next year and will consider waiting late to file, or even doing my first ever extension.

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Re: IRS publishes draft 2018 1040 - Huge changes made

Post by CurlyDave » Tue Jun 26, 2018 8:55 am

One of the great joys of my life was when we finally had enough money (and tax complexity) to hire a real CPA to do our taxes for us -- not an H&R Block or some similar outfit.

They are shuffling the forms around, but the tax calculations will still be done by software and electronically sent to the IRS.

Even though we use Excel, we could write our information on the inside of a flattened Costco box with a crayon and our CPA would still file our taxes on time. More expensive than DIY and TurboTax, maybe. But the peace of mind is worth as much as a vacation in the Bahamas.

* * * * * * * * * * * * * *

I read the NY Times article, and IMHO it is full of unnecessary snark. As much as I find it difficult to work up a lot of sympathy for the IRS, they are a necessary evil.

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Re: IRS publishes draft 2018 1040 - Huge changes made

Post by rkhusky » Tue Jun 26, 2018 9:46 am

pokebowl wrote:
Tue Jun 26, 2018 8:14 am
feehater wrote:
Tue Jun 26, 2018 8:03 am
So now a self employed person will need to include four extra schedules instead of two? So much simpler!
That is usually the modus operandi of the IRS, take something simple and complicate it. :D
Rather than the IRS, Congress is to blame for the current tax code. They should scrap the whole thing and start from scratch.

I am expecting my 2018 estimates to be close, given the information already released. Shuffling the forms around does not change the underlying calculations. The trouble I am having is learning to relax and not worry about keeping track of itemized deductions anymore since we will be using the new standard deduction. Every time I give to charity I have to remind myself that I don't need to ask for a receipt. And I don't have an FSA anymore, so I don't have to worry about medical receipts. It's a feeling of freedom. Perhaps I will even stop tracking it on my computer.

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Re: IRS publishes draft 2018 1040 - Huge changes made

Post by beardsworth » Tue Jun 26, 2018 10:16 am

Well, let's see . . .

The new 1040 has a line to enter a person's federal tax withholding, but no line to enter payments of estimated tax (which were at Line 65, separate from withholding, of the previous form). Since estimated tax payments are still required of many people, they'll have to be entered somewhere.

The new form lumps IRA distributions with pension/annuity distributions. This will make it more difficult, using the 1040 alone, for anyone (including a tax examiner?) to tell at first glance how much income came from each of these individual types of retirement plans. The previous form separated IRA income from other retirement plan income (Lines 15 and 16).

The new 1040 no longer has a line for deductible contributions to an IRA (Line 32 of the previous form).

It has a line for "other" taxes but no specific line for self-employment Social Security tax computed from a Schedule SE. Likewise, it has no line for the income deduction of 50% of that Schedule SE tax (Line 27 of the previous form).

It no longer has a place to check boxes indicating if a taxpayer is eligible for the increased standard deduction for persons who are over 65 or blind (Line 39 of the previous form).

And so on.

Since it's my understanding that none of these characteristics of the tax code itself were actually abolished in the 2017 tax code revisions, it appears that they'll still need to be entered somewhere in the complete filed return, but the place to do so has just been shunted off to forthcoming new versions of other forms, i.e., attachments, in the name of "simplifying" the visual appearance of the main 1040. Of course, it may indeed be simpler, i.e., less paper "real estate" to look over, for people whose income sources and deductions are also simple, but everyone was always free to leave blank all the portions of the previous form which didn't apply to their personal situation.

Therefore it's not clear whether this marks any substantive change in overall paperwork requirements or is just a rearranging of the deck chairs and restaurant menus.

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Re: IRS publishes draft 2018 1040 - Huge changes made

Post by missingdonut » Tue Jun 26, 2018 10:30 am

beardsworth wrote:
Tue Jun 26, 2018 10:16 am
Therefore it's not clear whether this marks any substantive change in overall paperwork requirements or is just a rearranging of the deck chairs and restaurant menus.
That's what it is. The NY Times article referenced earlier has drafts of the six new schedules where the deck chairs have been rearranged.

DrCheese
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Re: IRS publishes draft 2018 1040 - Huge changes made

Post by DrCheese » Tue Jun 26, 2018 10:32 am

beardsworth wrote:
Tue Jun 26, 2018 10:16 am
The new 1040 no longer has a line for deductible contributions to an IRA (Line 32 of the previous form).
Everything is still there but they have moved everything to schedules. Line 32 of the previous form is there on Schedule 1 line 32.

It seems the IRS goal was to get a one page 1040 possibly to fit on a postcard. They just created schedules to enter the information that was previously on the 1040. Those totals are then carried back to the 1040.

As other people have stated, the IRS has just re-arranged the deck chairs. However, it does look like they have used the same line numbers as were on the 1040. The schedules line numbers do not begin with 1.

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Re: IRS publishes draft 2018 1040 - Huge changes made

Post by Whakamole » Tue Jun 26, 2018 10:45 am

DrCheese wrote:
Tue Jun 26, 2018 10:32 am
beardsworth wrote:
Tue Jun 26, 2018 10:16 am
The new 1040 no longer has a line for deductible contributions to an IRA (Line 32 of the previous form).
Everything is still there but they have moved everything to schedules. Line 32 of the previous form is there on Schedule 1 line 32.

It seems the IRS goal was to get a one page 1040 possibly to fit on a postcard. They just created schedules to enter the information that was previously on the 1040. Those totals are then carried back to the 1040.
Which means some things are moved off.

A previous poster mention estimated tax payments being moved off. I've never paid them. I understand that impacts mainly self-employed people, of which there are many, but those people are never going to be able to use a one-page form anyway since they are probably itemizing. They aren't the target market for the one-page form, so to speak.

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Re: IRS publishes draft 2018 1040 - Huge changes made

Post by AlohaJoe » Tue Jun 26, 2018 10:49 am

Sheepdog wrote:
Tue Jun 26, 2018 7:45 am
We may be going to a postcard size form? In the early years, like when I filed my first return in the early 50s, the simple 1040 was just that .... a post card with just a half dozen or so lines. You didn't even have to calculate anything, if you didn't want to. (That was for very low income people like me.)
The IRS has all 1040s ever still online. Here's the 1040a from 1960: https://www.irs.gov/pub/irs-prior/f1040a--1960.pdf

One can compare it to the 2015 1040ez https://www.irs.gov/pub/irs-prior/f1040ez--2015.pdf

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vitaflo
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Re: IRS publishes draft 2018 1040 - Huge changes made

Post by vitaflo » Tue Jun 26, 2018 10:58 am

DrCheese wrote:
Tue Jun 26, 2018 10:32 am
As other people have stated, the IRS has just re-arranged the deck chairs. However, it does look like they have used the same line numbers as were on the 1040. The schedules line numbers do not begin with 1.
Yup, noticed that too. The entire old 1040 is now spread across 6 forms, the new 1040 and 5 Schedules (1-5). I also find it funny they used the same line numbers as the old form on the new schedules as well.

The entire thing is fairly comical when a vast majority of people file electronically anyway. They never see the forms, so the fact that a 1040 is "smaller" is fairly meaningless. But I can see there being a nice income boost to tax preparers who charge "by the form".

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vitaflo
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Re: IRS publishes draft 2018 1040 - Huge changes made

Post by vitaflo » Tue Jun 26, 2018 11:18 am

I have to assume this is still a WIP as the way Schedule 1 works with the new 1040 could cause confusion. On the 1040 it says to add the amount from Schedule 1 line 22 to line 6 of the 1040. However, Schedule 1 says if you have adjustments to complete the form and use line 37 of schedule 1 on line 6 of 1040 instead.

That's fine but line 7 of the 1040 then says to subtract line 36 of schedule 1 if you have adjustments. That's a bit of a chicken/egg problem, and could lead to double adjustment counting if you're not careful.

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Re: IRS publishes draft 2018 1040 - Huge changes made

Post by jebmke » Tue Jun 26, 2018 11:32 am

annielouise wrote:
Tue Jun 26, 2018 8:51 am
I love your faith in the software developers who have a herculean task to complete in a short time. I would plan on the software having lots of errors next year and will consider waiting late to file, or even doing my first ever extension.
Such faith is probably misplaced. The software we use at TaxAide was riddled with errors even under the old code. I'm not optimistic on their ability to master all these changes.

For my personal taxes, I will continue to follow my strategy of filing as late as possible us HRBlock software - early October. Maybe by October 2019 they will have a reasonably stable product.
When you discover that you are riding a dead horse, the best strategy is to dismount.

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Re: IRS published draft 2018 1040 - Huge changes made

Post by Dottie57 » Tue Jun 26, 2018 11:43 am

annielouise wrote:
Tue Jun 26, 2018 8:51 am
The Wizard wrote:
Tue Jun 26, 2018 7:38 am
retiredjg wrote:
Tue Jun 26, 2018 7:04 am
Oh my, so much new stuff to learn. Methinks this will be a mess for awhile.:happy
Tax software will handle this just fine.
But you're right in that we can't just update the numbers on this year's form from last year's form.

I made a reasonable guess as to my 2018 tax liability a while ago and updated my withholding. Will be interesting next February to see how close I was...
I love your faith in the software developers who have a herculean task to complete in a short time. I would plan on the software having lots of errors next year and will consider waiting late to file, or even doing my first ever extension.
+1

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Re: IRS publishes draft 2018 1040 - Huge changes made

Post by FactualFran » Tue Jun 26, 2018 1:22 pm

Whakamole wrote:
Tue Jun 26, 2018 10:45 am
A previous poster mention estimated tax payments being moved off. I've never paid them. I understand that impacts mainly self-employed people, of which there are many, but those people are never going to be able to use a one-page form anyway since they are probably itemizing. They aren't the target market for the one-page form, so to speak.
I make estimated tax payments, am non-employed, and don't itemize. I guess I'll have to wait for Form 1040SR for 2019.
Last edited by FactualFran on Tue Jun 26, 2018 2:00 pm, edited 1 time in total.

mega317
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Re: IRS publishes draft 2018 1040 - Huge changes made

Post by mega317 » Tue Jun 26, 2018 1:44 pm

We're going to have to learn new reference numbers when helping out members. No longer can we ask "what is on line 37 of your 1040?"

Random Poster
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Re: IRS publishes draft 2018 1040 - Huge changes made

Post by Random Poster » Tue Jun 26, 2018 1:49 pm

A cynic might reasonably believe that, by moving some of the adjustments to income to obscure worksheets, the government is hoping that the taxpayer will find the whole thing overly complicated (or not find the relevant adjustment at all) and give up, thereby paying more tax than they otherwise would.

I don't see the rationale to "simplifying" the 1040 at all.

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Re: IRS publishes draft 2018 1040 - Huge changes made

Post by serbeer » Tue Jun 26, 2018 2:04 pm

CurlyDave wrote:
Tue Jun 26, 2018 8:55 am
One of the great joys of my life was when we finally had enough money (and tax complexity) to hire a real CPA to do our taxes for us -- not an H&R Block or some similar outfit.

They are shuffling the forms around, but the tax calculations will still be done by software and electronically sent to the IRS.

Even though we use Excel, we could write our information on the inside of a flattened Costco box with a crayon and our CPA would still file our taxes on time. More expensive than DIY and TurboTax, maybe. But the peace of mind is worth as much as a vacation in the Bahamas.
..
Hm, my wife had been trying to talk me into it for a while, but the thing is, I do not trust tax prepares of any kind enough, so prefer to spend close to one entire day (usually) and do our taxes myself with TurboTax. In the previous years I had a huge advantages of a) transfering last year return to the current year, and b) comparing previous year (actually 5 previous years) with current one on line-item level with simple mouse-click, so every smallest difference stood out and I would look into it and explain it. This year I bet I still will be able to transfer last year return, but comparing is not going to be easy or perhaps even useful anymore--until the next year.

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Re: IRS publishes draft 2018 1040 - Huge changes made

Post by annielouise » Tue Jun 26, 2018 2:07 pm

rkhusky wrote:
Tue Jun 26, 2018 9:46 am


I am expecting my 2018 estimates to be close, given the information already released. Shuffling the forms around does not change the underlying calculations. The trouble I am having is learning to relax and not worry about keeping track of itemized deductions anymore since we will be using the new standard deduction. Every time I give to charity I have to remind myself that I don't need to ask for a receipt. And I don't have an FSA anymore, so I don't have to worry about medical receipts. It's a feeling of freedom. Perhaps I will even stop tracking it on my computer.
Unless you have a crystal ball, you can never be certain that you won't itemize. But, of course, it is your choice to not save receipts. I have seen people run up tens of thousands (or more) of eligible medical expenses towards the end of a year.

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Re: IRS publishes draft 2018 1040 - Huge changes made

Post by FIREchief » Tue Jun 26, 2018 2:21 pm

annielouise wrote:
Tue Jun 26, 2018 2:07 pm
rkhusky wrote:
Tue Jun 26, 2018 9:46 am


I am expecting my 2018 estimates to be close, given the information already released. Shuffling the forms around does not change the underlying calculations. The trouble I am having is learning to relax and not worry about keeping track of itemized deductions anymore since we will be using the new standard deduction. Every time I give to charity I have to remind myself that I don't need to ask for a receipt. And I don't have an FSA anymore, so I don't have to worry about medical receipts. It's a feeling of freedom. Perhaps I will even stop tracking it on my computer.
Unless you have a crystal ball, you can never be certain that you won't itemize. But, of course, it is your choice to not save receipts. I have seen people run up tens of thousands (or more) of eligible medical expenses towards the end of a year.
That's a good point. Although, many people now have HDHPs with out of pocket maximums well below $10K.
I am not a lawyer, accountant or financial advisor. Any advice or suggestions that I may provide shall be considered for entertainment purposes only.

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Re: IRS publishes draft 2018 1040 - Huge changes made

Post by Glockenspiel » Tue Jun 26, 2018 2:29 pm

Such a PR stunt. There's no reason to truly try to fit it on a postcard-sized sheet of paper. "Look! We made taxes far more simple!" In reality, taxes are still just as complicated as they were before.

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Re: IRS publishes draft 2018 1040 - Huge changes made

Post by mega317 » Tue Jun 26, 2018 2:30 pm

Random Poster wrote:
Tue Jun 26, 2018 1:49 pm
A cynic might reasonably believe that, by moving some of the adjustments to income to obscure worksheets, the government is hoping that the taxpayer will find the whole thing overly complicated (or not find the relevant adjustment at all) and give up, thereby paying more tax than they otherwise would.
Except additional income and other taxes are also on worksheets, and a cynic might believe that if a taxpayer can't be bothered to properly do the adjustments, they certainly won't be bothered to add for example royalties or taxable state refunds.

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Re: IRS publishes draft 2018 1040 - Huge changes made

Post by beardsworth » Tue Jun 26, 2018 2:43 pm

Still thinking about this thread, it just occurred to me that all the states whose returns begin by incorporating the gross income number and/or other figures from the federal return ("Enter federal adjusted gross income from Form 1040, Line 37") will also be forced to revise their forms to cite the new federal line numbers.

I'm sure they'll be delighted about it. :annoyed

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Re: IRS publishes draft 2018 1040 - Huge changes made

Post by jebmke » Tue Jun 26, 2018 2:48 pm

beardsworth wrote:
Tue Jun 26, 2018 2:43 pm
Still thinking about this thread, it just occurred to me that all the states whose returns begin by incorporating the gross income number and/or other figures from the federal return ("Enter federal adjusted gross income from Form 1040, Line 37") will also be forced to revise their forms to cite the new federal line numbers.

I'm sure they'll be delighted about it. :annoyed
This is what will really crater the programmers. Most of the errors in our Taxaide software were state related. In some cases, the software produces incorrect results and require manual correction. This is with no changes (2017). Imagine how it will go for 2018.
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Re: IRS publishes draft 2018 1040 - Huge changes made

Post by missingdonut » Tue Jun 26, 2018 2:58 pm

beardsworth wrote:
Tue Jun 26, 2018 2:43 pm
Still thinking about this thread, it just occurred to me that all the states whose returns begin by incorporating the gross income number and/or other figures from the federal return ("Enter federal adjusted gross income from Form 1040, Line 37") will also be forced to revise their forms to cite the new federal line numbers.

I'm sure they'll be delighted about it. :annoyed
For as much confusion and consternation that will be created from this marketing stunt, forcing some states to change "line 37" to "line 7" on their forms is probably the smallest problem.
DrCheese wrote:
Tue Jun 26, 2018 10:32 am
However, it does look like they have used the same line numbers as were on the 1040. The schedules line numbers do not begin with 1.
Very good eye. The IRS has learned over the past 15 years or so to use reserved lines because of temporary provisions, saving them time for when they inevitably revert.

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Re: IRS publishes draft 2018 1040 - Huge changes made

Post by jeffyscott » Tue Jun 26, 2018 5:59 pm

Sheepdog wrote:
Tue Jun 26, 2018 7:45 am
We may be going to a postcard size form?
And that should come from the IRS, as is done elsewhere (36 countries). Where the IRS equivalent tell you "this is what we have determined your taxes are, let us know if you disagree".
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Re: IRS publishes draft 2018 1040 - Huge changes made

Post by Big Dog » Tue Jun 26, 2018 6:19 pm

A disappointing article, IMO.

The author adds in a bunch of what-if's in his not-so-hidden criticism. To me, the obvious question is, how many folks actually use the 'teacher's school supplies' credit? Or, school loans? Sure, that may be a few million, but there are millions more that have no need for those specific lines. In other words, xx million teachers maybe disadvantaged by having to add a schedule, but millions? more will benefit from the simplicity. What are the IRS estimates, Mr. Author? (Surely, you thought to ask? :D )

Breaking News: one needs to add up deductions to see if they exceed the standard deduction to know whether to itemize. Is that new? I'm shocked, shocked! :shock:

Hint: according to a Dec-17 article in Time, the number of filers who itemize is estimated to decline from 46 million to 19 million.

Then the author hypothesizes: if folks stop filing electronic, more paper means more work for the IRS. Well true 'dat, but does the author have one scintilla of evidence that paper filing will increase? Or, just making stuff up to support his critical pov?

But I concur with the previous poster: this is a draft released for public comments.

re: IRA deduction line....an estimated 13% of filers take a deduction; in other words, 87% do not. To me, such things rightfully belong on a schedule. (That ignore whether more people should be making an IRA contribution.)

fwiw: I'm a big fan of TurboTax.

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Re: IRS publishes draft 2018 1040 - Huge changes made

Post by arcticpineapplecorp. » Tue Jun 26, 2018 6:28 pm

I will chime in only because something hasn't been mentioned that I view as interesting and possibly important.

Does anyone notice that the "sign here" part of the return is at the bottom of page 1 instead of at the end of the return previously?

Freakonomics did a piece on this years ago in which it was determined (by researchers) that one of the simplest and easiest things we could do to reduce tax cheating (or "the liberal use of deductions", to put it more generously) was to have people sign at the beginning of the tax return, rather than at the end.

I believe someone even did research on this to see if it was true (if it made a significant difference) and apparently it did (might have been in another country).

The theory is that if you sign at the end after you've already taken overly generous deductions you're not as likely to go back and rework everything, instead choosing to rationalize what you've done. But if you sign/attest to being truthful at the outset, you're likely to not be as loosey goosey with deductions after that.

While it's true that more file electronically, and less will take deductions now anyway because of the higher standard deduction, and someone who has lots of deductions might have a CPA and it would be above board anyway, I say true. But if it stops others from cheating (those doing long form/deduction taking and complete returns on their own), it could be a positive change if it reduces cheating.

Thoughts?
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DrCheese
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Re: IRS publishes draft 2018 1040 - Huge changes made

Post by DrCheese » Tue Jun 26, 2018 6:40 pm

The only "problem" I have with this is putting capital gains on schedule 1. It should be on the 1040. Now if I have a few capital gains, I have to file Schedule 1, Schedule D and Form 8949. It is a little too much.

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Re: IRS publishes draft 2018 1040 - Huge changes made

Post by Jeff Albertson » Tue Jun 26, 2018 6:42 pm

Glockenspiel wrote:
Tue Jun 26, 2018 2:29 pm
Such a PR stunt. There's no reason to truly try to fit it on a postcard-sized sheet of paper. "Look! We made taxes far more simple!" In reality, taxes are still just as complicated as they were before.
Exactly, lipstick on a pig. An attempt to reduce the unpopularity of recent changes.

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Toons
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Re: IRS publishes draft 2018 1040 - Huge changes made

Post by Toons » Tue Jun 26, 2018 7:07 pm

I will cross the Tax bridge with TaxAct when the time comes,,
Going camping now


"One does not accumulate but eliminate. It is not daily increase but daily decrease. The height of cultivation always runs to simplicity" –Bruce Lee

Atgard
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Re: IRS publishes draft 2018 1040 - Huge changes made

Post by Atgard » Tue Jun 26, 2018 8:09 pm

"Put it on a postcard!"
"But, without actually simplifying the rules, that just means we take half the stuff off the old form and shunt it to a bunch of appendices. So, while some people may go from 2 pages to 1, others will go from 2 up to 7."
"PUT IT ON A POSTCARD!!!"
"Yes, sir."

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jeffyscott
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Re: IRS publishes draft 2018 1040 - Huge changes made

Post by jeffyscott » Tue Jun 26, 2018 9:11 pm

DrCheese wrote:
Tue Jun 26, 2018 6:08 am
It is now just one page instead of two.
Actually it says "one double-sided half page". Much easier to have things on two sides of half a sheet of paper, rather than one side of a full sheet.

90% file electronically, they should be figuring out how to convince the remaining 10% to join the 21st century, rather than fooling around with the paper forms.
press on, regardless - John C. Bogle

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FrugalInvestor
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Re: IRS publishes draft 2018 1040 - Huge changes made

Post by FrugalInvestor » Tue Jun 26, 2018 9:17 pm

beardsworth wrote:
Tue Jun 26, 2018 2:43 pm
Still thinking about this thread, it just occurred to me that all the states whose returns begin by incorporating the gross income number and/or other figures from the federal return ("Enter federal adjusted gross income from Form 1040, Line 37") will also be forced to revise their forms to cite the new federal line numbers.

I'm sure they'll be delighted about it. :annoyed
All the politicians can then claim they've created jobs - it's a win-win!
IGNORE the noise! | Our life is frittered away by detail... simplify, simplify. - Henry David Thoreau

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Re: IRS publishes draft 2018 1040 - Huge changes made

Post by yousha » Tue Jun 26, 2018 9:37 pm

If one is over 65 years of age and single, my understanding is that one can add $1350 to the $12,000. Where can one find that on the new tax form? (Standard Deduction)

AlwaysWannaLearn
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Re: IRS publishes draft 2018 1040 - Huge changes made

Post by AlwaysWannaLearn » Tue Jun 26, 2018 9:39 pm

.....
Last edited by AlwaysWannaLearn on Thu Jul 19, 2018 6:13 pm, edited 1 time in total.

TIAX
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Re: IRS publishes draft 2018 1040 - Huge changes made

Post by TIAX » Tue Jun 26, 2018 9:45 pm

We should all wait until April to file for the developers to work out the bugs.

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FrugalInvestor
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Re: IRS publishes draft 2018 1040 - Huge changes made

Post by FrugalInvestor » Tue Jun 26, 2018 9:47 pm

TIAX wrote:
Tue Jun 26, 2018 9:45 pm
We should all wait until April to file for the developers to work out the bugs.
But we're told that we need to file early so the identity thieves don't beat us to the punch.
IGNORE the noise! | Our life is frittered away by detail... simplify, simplify. - Henry David Thoreau

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Re: IRS publishes draft 2018 1040 - Huge changes made

Post by dodecahedron » Tue Jun 26, 2018 10:03 pm

yousha wrote:
Tue Jun 26, 2018 9:37 pm
If one is over 65 years of age and single, my understanding is that one can add $1350 to the $12,000. Where can one find that on the new tax form? (Standard Deduction)
Seniors are supposed to get their own special form, 1040-SR. (But don't know about the blind.)

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Re: IRS publishes draft 2018 1040 - Huge changes made

Post by willthrill81 » Tue Jun 26, 2018 10:08 pm

Will traditional IRA contributions be in a schedule or on the new 1040? I'm not seeing it on the 1040, but the form is hard to see clearly.
“It's a dangerous business, Frodo, going out your door. You step onto the road, and if you don't keep your feet, there's no knowing where you might be swept off to.” J.R.R. Tolkien,The Lord of the Rings

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Re: IRS publishes draft 2018 1040 - Huge changes made

Post by yousha » Tue Jun 26, 2018 10:22 pm

dodecahedron wrote:
Tue Jun 26, 2018 10:03 pm
yousha wrote:
Tue Jun 26, 2018 9:37 pm
If one is over 65 years of age and single, my understanding is that one can add $1350 to the $12,000. Where can one find that on the new tax form? (Standard Deduction)
Seniors are supposed to get their own special form, 1040-SR. (But don't know about the blind.)
Does anyone know if forms will be mailed out?

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