2018 Tax Time is upon us

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Doc
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2018 Tax Time is upon us

Post by Doc » Tue Nov 13, 2018 4:33 pm

Downloaded TurboTax 2018 yesterday and started playing.

The POSTCARD looks like a reality.

All the stuff that used to go on form 1040 now goes on a 1040 worksheet and the key items on the worksheet go to line items on the POSTCARD. :twisted:
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neoptolemus412
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Re: 2018 Tax Time is upon us

Post by neoptolemus412 » Tue Nov 13, 2018 4:44 pm

It looks pretty intuitive as most messy items have been moved to schedule A. If more a lot more people are taking the standard deduction, this makes sense. For those interested, here's the draft from a few months back.

https://www.irs.gov/pub/irs-dft/f1040--dft.pdf

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Artsdoctor
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Re: 2018 Tax Time is upon us

Post by Artsdoctor » Tue Nov 13, 2018 5:01 pm

Doc wrote:
Tue Nov 13, 2018 4:33 pm
Downloaded TurboTax 2018 yesterday and started playing.

The POSTCARD looks like a reality.

All the stuff that used to go on form 1040 now goes on a 1040 worksheet and the key items on the worksheet go to line items on the POSTCARD. :twisted:
Yes. I've been working on TurboTax which was released last week. The 1040 form is not exactly a post card but it looks very simple at first glance. However, there are many, many forms that feed into it (you're still going to have the various schedules, the S Corp info, the various deductions, etc., etc.). It's like saying that the new 1040 is simpler in the same way that the 1040-EZ was simpler; it's true but if you look at the details, it's not.

FactualFran
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Re: 2018 Tax Time is upon us

Post by FactualFran » Tue Nov 13, 2018 5:16 pm

Doc wrote:
Tue Nov 13, 2018 4:33 pm
All the stuff that used to go on form 1040 now goes on a 1040 worksheet and the key items on the worksheet go to line items on the POSTCARD. :twisted:
Stuff that used to go on Form 1040 will go on Form 1040 and up to six schedules. I'll be going from filing a single sheet of paper for Form 1040 to filing at least three sheets of paper. More accurately, I'll be going from filling out a single form to filling out three forms.

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Nestegg_User
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Re: 2018 Tax Time is upon us

Post by Nestegg_User » Tue Nov 13, 2018 6:18 pm

FactualFran wrote:
Tue Nov 13, 2018 5:16 pm
Doc wrote:
Tue Nov 13, 2018 4:33 pm
All the stuff that used to go on form 1040 now goes on a 1040 worksheet and the key items on the worksheet go to line items on the POSTCARD. :twisted:
Stuff that used to go on Form 1040 will go on Form 1040 and up to six schedules. I'll be going from filing a single sheet of paper for Form 1040 to filing at least three sheets of paper. More accurately, I'll be going from filling out a single form to filling out three forms.
....or like most of us, one form plus (at least) two new schedules (one for Schedule D and one for foreign tax credit) plus the old schedule and (additional forms for any sales). So those who do actually pay for tax prep and pay per form are gonna get hosed :| _____ fortunately we do our own the old fashioned way.

(....working on that stuff now so to plan the Roth conversions. Interesting that the limit for 0% tax on gains is $77200 while the limit for 12% MFJ taxable income is $77400? I wonder how many will get caught in that ?)

b0B
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Re: 2018 Tax Time is upon us

Post by b0B » Tue Nov 13, 2018 9:03 pm

Doc wrote:
Tue Nov 13, 2018 4:33 pm
Downloaded TurboTax 2018 yesterday and started playing.

The POSTCARD looks like a reality.

All the stuff that used to go on form 1040 now goes on a 1040 worksheet and the key items on the worksheet go to line items on the POSTCARD. :twisted:
Every tax return in the country could fit into a hard drive the size of a postcard. Your individual return could fit on a speck too small to see.

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triceratop
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Re: 2018 Tax Time is upon us

Post by triceratop » Tue Nov 13, 2018 9:13 pm

Doc wrote:
Tue Nov 13, 2018 4:33 pm
Downloaded TurboTax 2018 yesterday and started playing. The POSTCARD looks like a reality. All the stuff that used to go on form 1040 now goes on a 1040 worksheet and the key items on the worksheet go to line items on the POSTCARD. :twisted:
(I edited the quotation for concision, it is now much shorter without line breaks and thus obviously better despite having the same content)

Thanks for the report, Doc. :thumbsup
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ray.james
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Re: 2018 Tax Time is upon us

Post by ray.james » Tue Nov 13, 2018 9:17 pm

I am happy, I will be taking a standard deduction. Every single year I get exactly 13-14K deductible items(do not own a house, CA) and it is just more work for itemizing and adjusting next year returns.

Albeit, I added to the complexity by acquiring a rental. :?
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rkhusky
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Re: 2018 Tax Time is upon us

Post by rkhusky » Tue Nov 13, 2018 9:25 pm

It is a wash for me. I lose Sched A, but gain Sched 1.

kaneohe
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Re: 2018 Tax Time is upon us

Post by kaneohe » Wed Nov 14, 2018 8:59 am

Nestegg_User wrote:
Tue Nov 13, 2018 6:18 pm
FactualFran wrote:
Tue Nov 13, 2018 5:16 pm
Doc wrote:
Tue Nov 13, 2018 4:33 pm
All the stuff that used to go on form 1040 now goes on a 1040 worksheet and the key items on the worksheet go to line items on the POSTCARD. :twisted:
Stuff that used to go on Form 1040 will go on Form 1040 and up to six schedules. I'll be going from filing a single sheet of paper for Form 1040 to filing at least three sheets of paper. More accurately, I'll be going from filling out a single form to filling out three forms.
....or like most of us, one form plus (at least) two new schedules (one for Schedule D and one for foreign tax credit) plus the old schedule and (additional forms for any sales). So those who do actually pay for tax prep and pay per form are gonna get hosed :| _____ fortunately we do our own the old fashioned way.

(....working on that stuff now so to plan the Roth conversions. Interesting that the limit for 0% tax on gains is $77200 while the limit for 12% MFJ taxable income is $77400? I wonder how many will get caught in that ?)
Thinking of making my own postcard......I'll need your 2 new schedules plus others for est. tax/NIIT. Since each of the schedules has only a few relevant lines and then either irrelevant or blank space, maybe I'll take an old 1040 which had all the relevant lines and divide/mark them up into sections w/ the correct schedule names...........then
3 or 4 pages of schedules get postcarded into a single (double-sided) page. :happy

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Re: 2018 Tax Time is upon us

Post by LadyGeek » Wed Nov 14, 2018 5:08 pm

This is a "no politics" forum. I removed a few rants regarding the tax form. As a reminder, see: Politics and Religion
In order to avoid the inevitable frictions that arise from these topics, political or religious posts and comments are prohibited. The only exceptions to this rule are:
  • Common religious expressions such as sending your prayers to an ailing member.
  • Usage of factual and non-derogatory political labels when necessary to the discussion at hand.
  • Discussions about enacted laws or regulations that affect the individual investor. Note that discussions of proposed legislation are prohibited.
  • Proposed regulations that are directly related to investing may be discussed if and when they are published for public comments.
Please state your concerns in a civil, factual, manner. Rants (other than political) are also off-topic.
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jebmke
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Re: 2018 Tax Time is upon us

Post by jebmke » Wed Nov 14, 2018 5:32 pm

ray.james wrote:
Tue Nov 13, 2018 9:17 pm
I am happy, I will be taking a standard deduction. Every single year I get exactly 13-14K deductible items(do not own a house, CA) and it is just more work for itemizing and adjusting next year returns.

Albeit, I added to the complexity by acquiring a rental. :?
The tricky part for us is that we have to run both cases so there is no way to avoid keeping track of the details for Schedule A. In my state, sometimes it makes sense to force itemization on the Federal return in order to obtain itemization on the state return because the total tax liability is lower that way -- even though the Federal tax might be higher.
When you discover that you are riding a dead horse, the best strategy is to dismount.

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Re: 2018 Tax Time is upon us

Post by grabiner » Wed Nov 14, 2018 10:58 pm

jebmke wrote:
Wed Nov 14, 2018 5:32 pm
ray.james wrote:
Tue Nov 13, 2018 9:17 pm
I am happy, I will be taking a standard deduction. Every single year I get exactly 13-14K deductible items(do not own a house, CA) and it is just more work for itemizing and adjusting next year returns.

Albeit, I added to the complexity by acquiring a rental. :?
The tricky part for us is that we have to run both cases so there is no way to avoid keeping track of the details for Schedule A. In my state, sometimes it makes sense to force itemization on the Federal return in order to obtain itemization on the state return because the total tax liability is lower that way -- even though the Federal tax might be higher.
Is this still the case? Some states have changed their laws so that you no longer need to itemize Federal taxes to itemize state taxes. And even if your state didn't change, if it was a close decision in the past, it won't be close now with the higher federal standard deduction and the SALT limit.
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Re: 2018 Tax Time is upon us

Post by Big Dog » Wed Nov 14, 2018 11:09 pm

....or like most of us, one form plus (at least) two new schedules (one for Schedule D and one for foreign tax credit)
I'll remember that negative next time we have a thread about 'Why International?'. :twisted:

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