2018 Tax Post Card?
If you have watched the news in the past year, or more specifically, paid attention to political rhetoric, you may have heard promises of an easier and simpler tax; maybe even a post card. You might have even heard of the Tax Cuts and Jobs Act. It seems that a smaller form is thought to convey a more simple way of filing taxes, so the IRS is officially releasing a postcard Form 1040.
The form is not an actual post card and will require the filer to use an envelope. However, in addition to the new size and fewer lines, there are 6 new schedules that go along with it.
- Schedule 1 – Reporting additional income and adjustments that would have been reported on the Schedules C, D, and E. This will also include the teacher deduction and student loan interest.
- Schedule 2 – Reports tax, such as AMT and excess premium tax credit.
- Schedule 3 – Reports nonrefundable tax credits such as foreign tax credits, education credit, and dependent care credit.
- Schedule 4 – Reports other taxes such as household employment taxes, individual mandate penalty, 3.8% tax on net investment income.
- Schedule 5 – Reports other payments and refundable credits including estimates paid, extension payments, and earned income credit.
- Schedule 6 – Will be used for foreign addresses or third party designees.
In addition to the new schedules, many of the old schedules and forms will still be required. If this does not seem easier to you or if you are interested in talking to a tax advisor about these changes, please reach out to us at Elias Strauss CPAs and we would be happy to help.