Tax Reform IRS Announces They Are Working on a New 1040 Tax Form: Intuit TurboTax Has Got You Covered Read the Article Open Share Drawer Share this:Click to share on Facebook (Opens in new window)Click to share on Twitter (Opens in new window)Click to share on LinkedIn (Opens in new window)Click to share on Pinterest (Opens in new window)Click to print (Opens in new window) Written by TurboTaxLisa Published Jun 29, 2018 - [Updated Sep 25, 2018] 2 min read Today the IRS announced they are working on changes to the 1040 tax forms. The IRS said that “this new approach will simplify the 1040 so that all 150 million taxpayers can use the same form. The new form consolidates the three versions of the 1040 into one simple form.” In addition to shortening Form 1040 to a postcard-sized return, the changes eliminate Forms 1040EZ and 1040A and increase the number of tax schedules supporting Form 1040 by six additional forms. The 1040 forms (1040, 1040A, 1040EZ) are the most common tax forms. The announcement today is the first major change to 1040 tax forms in decades. But don’t worry, TurboTax has you covered. Our teams are working with the IRS and Treasury and our products will be up to date for next tax season, so you can file with complete confidence. As you know, tax time is one time of the year many get a full snapshot of their financial picture. Taxpayers’ active participation in tax preparation is the backbone of the American tax system, giving them a better understanding of their true financial picture. Who will be able to file with the new Form 1040? If you have a straightforward tax situation and claim the standard deduction you will probably be able to file your taxes using the new Form 1040. If you have itemized deductions, your tax deductions will still be included on Schedule A. Itemized deductions include deductions for homeowners like home mortgage interest, property taxes, and interest paid on a home equity line of credit used to improve your home. Don’t worry about knowing the new tax laws and forms changes. TurboTax will make sure our products are up to date at tax time and that your tax filing process is as easy and understandable as possible. If you still have questions at tax time about how tax reform and forms changes impact you, you can connect live via one-way video to a TurboTax Live CPA or Enrolled Agent to get your tax questions answered. Check back with the TurboTax Blog Tax Reform Hub and the TurboTax Tax Reform Center for updates on 1040 tax form changes. Previous Post Tax Reform 101: Will Getting Married Change My Tax Situation? Next Post Tax Reform 101: How the New Tax Reform Law Changed… Written by Lisa Greene-Lewis Lisa has over 20 years of experience in tax preparation. Her success is attributed to being able to interpret tax laws and help clients better understand them. She has held positions as a public auditor, controller, and operations manager. Lisa has appeared on the Steve Harvey Show, the Ellen Show, and major news broadcast to break down tax laws and help taxpayers understand what tax laws mean to them. For Lisa, getting timely and accurate information out to taxpayers to help them keep more of their money is paramount. More from Lisa Greene-Lewis Follow Lisa Greene-Lewis on Twitter. 841 responses to “IRS Announces They Are Working on a New 1040 Tax Form: Intuit TurboTax Has Got You Covered” « Older Comments Newer Comments » How does this simplify things when you the tax law requires the addition of 6 more schedules ? How stupid ! Just because the three 1040 firms are consolidated doesn’t simply things if it requires the addition of 6 schedules !!! Reply What is the new deduction allowed for dependent children? Reply I just looked at my 2017 tax return generated with TurboTax and my standard deduction was $15,200 and my personal exemption was (for 2) $8100. I filed as married filing jointly with my wife and I taking personal exemptions. This adds up to $23,300. If all of this is being replaced by a standard deduction of $24000, I save a whooping $700! What a scam! And why was my calculated standard deduction $15,200 when you keep reporting that last year’s standard deduction was $12,700? Reply I have been using TurboTax since 1996. Are the prices known for the various products for 2018? Reply What about donations to schools, athletics and churches Reply Does the new law make any changes to the way social security income is taxed? Reply I was reading about changes in taxes on capital gains. Based on having a much lower income (we are both retired and only one of us is collecting Social Security at this time) I am thinking I may not have to pay any taxes on my long or short term capital gains. Do you know what these new limits on income are that impact taxes on capital gains? Reply I am confused. Can we still deduct Medical expenses, medical insurance premiums, Long Term Care Premiums, as well as state sales tax. Al Kissling Reply So if my mortgage interest is lets say, 21,000 a year. My property taxes 6000, state taxes 10,000 and charitable 8,000? I can itemize A. 21,000 mort int. + 10,000 for property, state (max) plus charitable for a total of $39,000. Or, B. 10,000 mort int, prop taxes 6000, state tax 10,000 (max) are all inc in max 10,000?plus charitable of 8,000 Which would mean I use the 24,000 + 8,000 charitable for a total of $32,000? Reply I am on Social Security how does effect me. Reply Can you still deduct health expense? What about health insurance? Reply Will interest on second mortgages still be a deduction Reply What about folks 65 and older? My understanding is the standard deduction is increasing to $13,500. Please address. Reply Is there still a child deduction? If so did it go up? Reply Hi Lisa, What product should I use for working in multiple states CT, DE, VA, MD for my 2018 tax return and will I have to file them by mail or can I e-file them? Thanks, Ed Hawes Reply Will medical expenses still be deductible? Reply Hi Lisa. I am small busness owner and I believe I qualify for the “pass through” deduction, however I have employees. The calculations are quite complicated. Will Turbo Tax for business be able to calculate the proper metrics? I have used Turbo Tax for over 20 years and depend on it for my business! Clark Reply Are transportation workers…Airline pilots and flight attendants still able to deduct their travel expenses?? Overseas traveler here. Reply Currently, dividends are not taxable if you are in the 15% tax bracket. Does that continue? Also, have there been any changes to the amount of social security income that is taxable? Reply What about the exemptions for folks over 65 (retired)? And those who are legally blind? Those exemptions no longer apply? Now, the old folks in retirement only get the double exemption like a 30-something married couple who are still working and get a paycheck? Reply I have a child who needs tutoring to help her with her Dyslexia and ADHD. How do I deduct this from my taxes and what documentation do I need to do so. Reply If I used Premier in the past for investment earnings or gain/loss on sale of investments, which version will I need for 2918? Reply I see this situation happening for me. I live in Arkansas and I believe that I will benefit from itemizing on my State Tax Return but will not have more than 24,000 in deductions for the federal return. Will Turbo Tax recognize this and file my returns accordingly. I have used Turbo Tax for many years. Reply I don’t feel very good about the constant updates I still get every-time I open TurboTax, even still get them after April 15. TurboTax may be ready but the Feds and States must not be! I always feel that if I allow the updates then you will change my return I filed back in Feburary. Why can’t the IRS get things right or at least wait to make changes? Reply I became a widow in Aug 2017, how will that affect my filing, I will still have stock and bonds Reply I’ve heard rumors of deducted mileage changing this year. Is there any truth in that? Reply if I used the standard deductions last year and everything else remains the same will my taxes reduce and by how much if my tax rate was 25 percent? Reply For 2017 I could not download my info from TD Ameritrade Institutional – when I logged in to get the info, TD Ameritrade didn’t recognize me because I’m with their Insitutional segment (password doesn’t work at the TD Ameritrade website). Will you add the “Institutional” segment for 2018 to make it possible to download the info rather than doing it all manually? Reply This upcoming Tax Time 2017 is in Feb 2018. so… 1.yes ,We should keep our “Donations to Charity” forms to be able to claim their value toward a refund as a home owner at this upcoming tax time, or… 2. No, We are not able to deduct our “Donations to Charity” and there is no need to collect forms to be able to claim their value toward a refund as a home owner. Reply Turbotax Lisa – thank you for your excellent and informative replies! Reply Is there’s limit on charitable contribution? Reply Is there a credit for elderly? Reply Does the new tax changes eliminate the taxing of the Seniors Social Security income i.e. old form line 20a/20b? Reply My wife has been receiving disability payments from her employer since 2016. They also had her apply to Social Security for the disability payments. Social security finally granted her the disability payments retroactive to 2016, but she had to repay most of that to her employer. Will one of the TurboTax products help us with that return do we only have to pay taxes on her portion from Dovisl Security she did not have to repay to her employer? Reply Will Social Security benefits be treated the same under new tax code Reply Above you say that one can deduct interest on home equity loan if used for home improvement. Does this remain true? I thought home equity interest was not going to be deductible. Reply can i deduct interest for a home equity loan that was used as a down payment for my rental property? Reply Will deductions for 2nd mortgages still apply to 2018 and beyond? Reply I’m retired and could basically use the simple IRS Tele-file, except for a legacy HSA account (old HSA from previous years Health Insurance choice). My question is, do I still need to file a long, unnecessary, 1040 because of this old HSA account that I still have ? Reply nobody asked about medical is it still the excess of 7.5% of your total income Reply Do we still need to bother with entering information from K-1 Forms on the new tax returns ? Sometimes entering these forms is complex and it takes a lot of time until the companies come out with them. Sometimes as late as end of March Reply What is the situation for real estate taxes on a home rented by relatives? Reply As a Clergy did they new law make any changes to the housing allowance exemption? Reply Is there still a deduction for alimony payments? Reply I have a suggestion, link Taxcaster to Turbotax 2017 to quickly see what our 2018 tax liability might be. Make it easier on Turbotax users. Reply I am 71 and getting social security…Is ss tax at the full amount or 85% as in previous years Reply Im a self employed senior fitness instructor with a number of expenses. Certifications, trainings, business licenses, education, mileage, promotional, class expenses….can i still deduct all that? Reply How does the new tax law effect retirees over 65. Does our standard deduction go up to $26,500 or does it stay at $ 24,000 Reply Are IRA contributions included in the standard deduction or are they in addition to that deduction? Reply As an employee with a 1040 who is in outside sales are these deductions still available My wife is a 1099 employee but also has traveling expenses What are the diffeences Reply « Older Comments Newer Comments » Leave a ReplyCancel reply Browse Related Articles Crypto Understanding Crypto and Capital Gains Work 7 Things You Need to Know About the New Business Report… Work Using Form 8829 to Write-Off Business Use of Your Home Tax Tips Roth 403(b) vs. Roth IRA: Which Should You Invest In? 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How does this simplify things when you the tax law requires the addition of 6 more schedules ? How stupid ! Just because the three 1040 firms are consolidated doesn’t simply things if it requires the addition of 6 schedules !!! Reply
I just looked at my 2017 tax return generated with TurboTax and my standard deduction was $15,200 and my personal exemption was (for 2) $8100. I filed as married filing jointly with my wife and I taking personal exemptions. This adds up to $23,300. If all of this is being replaced by a standard deduction of $24000, I save a whooping $700! What a scam! And why was my calculated standard deduction $15,200 when you keep reporting that last year’s standard deduction was $12,700? Reply
I was reading about changes in taxes on capital gains. Based on having a much lower income (we are both retired and only one of us is collecting Social Security at this time) I am thinking I may not have to pay any taxes on my long or short term capital gains. Do you know what these new limits on income are that impact taxes on capital gains? Reply
I am confused. Can we still deduct Medical expenses, medical insurance premiums, Long Term Care Premiums, as well as state sales tax. Al Kissling Reply
So if my mortgage interest is lets say, 21,000 a year. My property taxes 6000, state taxes 10,000 and charitable 8,000? I can itemize A. 21,000 mort int. + 10,000 for property, state (max) plus charitable for a total of $39,000. Or, B. 10,000 mort int, prop taxes 6000, state tax 10,000 (max) are all inc in max 10,000?plus charitable of 8,000 Which would mean I use the 24,000 + 8,000 charitable for a total of $32,000? Reply
What about folks 65 and older? My understanding is the standard deduction is increasing to $13,500. Please address. Reply
Hi Lisa, What product should I use for working in multiple states CT, DE, VA, MD for my 2018 tax return and will I have to file them by mail or can I e-file them? Thanks, Ed Hawes Reply
Hi Lisa. I am small busness owner and I believe I qualify for the “pass through” deduction, however I have employees. The calculations are quite complicated. Will Turbo Tax for business be able to calculate the proper metrics? I have used Turbo Tax for over 20 years and depend on it for my business! Clark Reply
Are transportation workers…Airline pilots and flight attendants still able to deduct their travel expenses?? Overseas traveler here. Reply
Currently, dividends are not taxable if you are in the 15% tax bracket. Does that continue? Also, have there been any changes to the amount of social security income that is taxable? Reply
What about the exemptions for folks over 65 (retired)? And those who are legally blind? Those exemptions no longer apply? Now, the old folks in retirement only get the double exemption like a 30-something married couple who are still working and get a paycheck? Reply
I have a child who needs tutoring to help her with her Dyslexia and ADHD. How do I deduct this from my taxes and what documentation do I need to do so. Reply
If I used Premier in the past for investment earnings or gain/loss on sale of investments, which version will I need for 2918? Reply
I see this situation happening for me. I live in Arkansas and I believe that I will benefit from itemizing on my State Tax Return but will not have more than 24,000 in deductions for the federal return. Will Turbo Tax recognize this and file my returns accordingly. I have used Turbo Tax for many years. Reply
I don’t feel very good about the constant updates I still get every-time I open TurboTax, even still get them after April 15. TurboTax may be ready but the Feds and States must not be! I always feel that if I allow the updates then you will change my return I filed back in Feburary. Why can’t the IRS get things right or at least wait to make changes? Reply
I became a widow in Aug 2017, how will that affect my filing, I will still have stock and bonds Reply
if I used the standard deductions last year and everything else remains the same will my taxes reduce and by how much if my tax rate was 25 percent? Reply
For 2017 I could not download my info from TD Ameritrade Institutional – when I logged in to get the info, TD Ameritrade didn’t recognize me because I’m with their Insitutional segment (password doesn’t work at the TD Ameritrade website). Will you add the “Institutional” segment for 2018 to make it possible to download the info rather than doing it all manually? Reply
This upcoming Tax Time 2017 is in Feb 2018. so… 1.yes ,We should keep our “Donations to Charity” forms to be able to claim their value toward a refund as a home owner at this upcoming tax time, or… 2. No, We are not able to deduct our “Donations to Charity” and there is no need to collect forms to be able to claim their value toward a refund as a home owner. Reply
Does the new tax changes eliminate the taxing of the Seniors Social Security income i.e. old form line 20a/20b? Reply
My wife has been receiving disability payments from her employer since 2016. They also had her apply to Social Security for the disability payments. Social security finally granted her the disability payments retroactive to 2016, but she had to repay most of that to her employer. Will one of the TurboTax products help us with that return do we only have to pay taxes on her portion from Dovisl Security she did not have to repay to her employer? Reply
Above you say that one can deduct interest on home equity loan if used for home improvement. Does this remain true? I thought home equity interest was not going to be deductible. Reply
can i deduct interest for a home equity loan that was used as a down payment for my rental property? Reply
I’m retired and could basically use the simple IRS Tele-file, except for a legacy HSA account (old HSA from previous years Health Insurance choice). My question is, do I still need to file a long, unnecessary, 1040 because of this old HSA account that I still have ? Reply
Do we still need to bother with entering information from K-1 Forms on the new tax returns ? Sometimes entering these forms is complex and it takes a lot of time until the companies come out with them. Sometimes as late as end of March Reply
I have a suggestion, link Taxcaster to Turbotax 2017 to quickly see what our 2018 tax liability might be. Make it easier on Turbotax users. Reply
Im a self employed senior fitness instructor with a number of expenses. Certifications, trainings, business licenses, education, mileage, promotional, class expenses….can i still deduct all that? Reply
How does the new tax law effect retirees over 65. Does our standard deduction go up to $26,500 or does it stay at $ 24,000 Reply
Are IRA contributions included in the standard deduction or are they in addition to that deduction? Reply
As an employee with a 1040 who is in outside sales are these deductions still available My wife is a 1099 employee but also has traveling expenses What are the diffeences Reply