New draft forms are here we say — doo dah doo dah
How do you think the final versions will play? Oh doo dah day
Comments they will fly
Changes they will try
I’m bettin’ we won’t know until next July oh doo dah day!

Draft 2019 Form 1040

  1. IRA distributions are separated from pension distributions
  2. Capital gain line was added back to the 1040
  3. Schedules are reduced from 6 to 3
  4. The font size on the 1040 is slightly larger (no comment).

Draft 2019 Form 1040-SR

The IRS also recently released the draft of the Form 1040-SR, which is designed to meet the mandate of the Bi-Partisan Budget Act (BBA) to provide senior citizens with a simplified way to file their taxes.

  1. No limit on income.
  2. Tax deductions: Although the BBA directed the IRS to make Form 1040-SR “as similar as practicable” to Form 1040-EZ, the draft 1040-SR allow taxpayers to either claim the standard deduction or itemized deductions.
  3. Tax credits: Users of Form 1040-SR can also claim both refundable and nonrefundable tax credits.
  4. Oh by the way — the font size is larger on this one too.

Consider this…

As of May 23, 2018, IRS statistics for tax filing year 2017 show there were just slightly more than 134 million tax returns filed. Out of that number, more than 124 million were electronically filed. So we would like to thank the IRS for their diligent effort to aid the 7% of taxpayers who still file their returns by paper. As for the 93% who electronically filed for 2017, we merely say, Oh Doo Dah Day…

University of Illinois Tax School is where tax professionals go to get timely updates and practical tips to help provide the best service to their clients.

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