The IRS announced plans to streamline the Form 1040 into a shorter, simpler document for the 2019 tax season so all 150 million taxpayers can use the same form.
The new 1040 – about half the size of the current version — would replace the current Form 1040 as well as the Form 1040A and the Form 1040EZ. The IRS circulated a copy of the new form and will work with the tax community to finalize the streamlined Form 1040 during the summer.
The new 1040 will consolidate the three versions of the 1040 into one simple form, while the IRS will still obtain the information from each taxpayer needed to determine their tax liability or refund.
The new Form 1040 uses a “building block” approach that can be supplemented with additional schedules as needed. Taxpayers with straightforward tax situations would only need to file this new 1040 with no additional schedules.
Since more than nine out of 10 taxpayers use software or a tax preparer, the IRS will work with the tax community to prepare for the streamlined Form 1040. This will help ensure a smooth transition for people familiar with software products and the interview process used to prepare tax returns.
Taxpayers who file on paper would use the streamlined Form 1040 and supplement it with any needed schedules.
The Journal of Accountancy reports:
“The 2018 draft form, which has not yet been officially posted on the IRS website, uses the first page to gather information about the taxpayer and any dependents and for the taxpayer’s signature and jurat. The second page gathers information on the taxpayer’s income, deductions (including a new line for the Sec. 199A qualified business income deduction), credits, and taxes paid. Many of the items reported on the 1040 will be calculated on various new schedules, which have also not yet been officially posted.”
The JOA article goes on to list a breakdown of the schedules.
You see a PDF of the 1040 Draft that appeared in a Wall Street Journal article, “There’s a New 1040 Tax Form. Will Millions of E-Filers Even Notice?” (June 29, 2018, subscription required).