IRS Issues Second Draft of Form 1040 and New Form 1040-SR

(Parker Tax Publishing November 2019)

The IRS issued a second draft of the 2019 Form 1040, which has fewer numbered schedules than last year as well as some other changes. In addition, new for 2019, the IRS has introduced Form 1040-SR, U.S. Tax Return for Seniors, which is a simplified tax return that may be used for taxpayers born before January 2, 1955. Second Draft 2019 Form 1040; Draft 2019 Form 1040-SR; Draft Instructions for 2019 Form 1040 and 2019 Form 1040-SR.

In mid-October, the IRS released a second draft of the 2019 Form 1040 as well as draft instructions. The new draft contains the following changes from the 2018 Form 1040:

(1) There are only three numbered schedules instead of six;

(2) Schedules 2 and 4 were combined into Schedule 2 with the result that additional taxes owed by taxpayers, such as self-employment tax and household employment taxes, will now be reported on Schedule 2 and Schedule 4 no longer exists;

(3) Schedules 3 and 5 have been combined into Schedule 3 with the result that any credits not claimed on Form 1040 or Form 1040-SR will now be reported on Schedule 3 and Schedule 5 no longer exists;

(4) Schedule 6, which in 2018 was used to report a foreign address and third party designee, has been merged with Forms 1040 and 1040-SR;

(5) IRA distributions and pensions and annuities are now reported on separate lines; and

(6) Capital gains are now reported on the front page of the Form 1040, rather than being reported on Schedule 1 (Form 1040) as it was for 2018.

In addition to the discontinued schedules mentioned above, the following have also been discontinued for 2019:

(1) Schedule C-EZ (Form 1040), Net Profit From Business (Schedule C will be used);

(2) Form 2555-EZ, Foreign Earned Income Exclusion (Form 2555 will be filed instead);

(3) Form 1099-H, Health Coverage Tax Credit; and

(4) Form 8965, Health Coverage Exemptions (no longer required as a result of the elimination of the shared responsibility payment previously owed by individuals that did not have minimum essential health care coverage).

Disclaimer: This publication does not, and is not intended to, provide legal, tax or accounting advice, and readers should consult their tax advisors concerning the application of tax laws to their particular situations. This analysis is not tax advice and is not intended or written to be used, and cannot be used, for purposes of avoiding tax penalties that may be imposed on any taxpayer. The information contained herein is general in nature and based on authorities that are subject to change. Parker Tax Publishing guarantees neither the accuracy nor completeness of any information and is not responsible for any errors or omissions, or for results obtained by others as a result of reliance upon such information. Parker Tax Publishing assumes no obligation to inform the reader of any changes in tax laws or other factors that could affect information contained herein.

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