https://www.irs.gov/pub/irs-dft/f1040–dft.pdf
The draft postcard-size 2018 Form 1040 and six draft Schedules released June 29, 2018, give a look at the 1040 half of a dual-status return. This is filed by someone who is a tax resident and a tax non-resident of the U.S. for different portions of the same tax year and must use both Form 1040 and Form 1040NR.
Form 1040NR will remain unchanged, according to the IRS.
June 2018 draft Form 1040:
There are two areas for “Standard Deduction” on the first side of the page. The first Standard Deduction line appears under the line for “your” name and Social Security Number. It has three choices.
The second standard deduction line appears under the line below for ‘Spouse or Qualifying Person’. It has four choices.
The fourth choice is titled: Your spouse itemizes on a separate return or you were a dual-status alien.
On the second side, Line 8 states: Enter the standard deduction, otherwise, attach Schedule A.
The building block concept is that all 1040 filers will use this simple form. As needed, the filer will attach other forms/schedules.
The three choices under the first mention of Standard Deduction are:
- -Someone can claim you as a dependent
-You were born before January 2, 1954 - -You are blind
The four choices under the second mention of Standard Deduction are:
- -Someone can claim your spouse as a dependent
-Your spouse is blind
-Your spouse was born before January 2, 1954
–Your spouse itemizes on a separate return or you were a dual-status alien.
https://www.irs.gov/pub/irs-dft/f1040–dft.pdf
Got that?
There will be another revision before the final version is released. Get your comments in directly to the IRS or to a professional organization.
IRS is asking for comments from individuals and tax professionals, according to the June 29 e–News for Tax Professionals. They request you send them to WI.1040.Comments@IRS.gov
A special NATP alert reported on a June 29 conference call led by Acting IRS Commissioner David Kauffer. NATP says they were asked to collect and submit comments on the draft forms from members. NATP would like to receive the comments by July 10 on their feedback form.
NATP states that a second draft version of Form 1040 will be released in August, and the final version in December.
Their alert included a link to the six new schedules that might accompany a Form 1040. Essentially, they replace the various topic areas on the 2017 long form Form 1040.
-Schedule 1 Additional Income and Adjustments to Income
-Schedule 2 Tax
-Schedule 3 Non-refundable credits
-Schedule 4 Other Taxes
-Schedule 5 Other Payments and Refundable Credits
-Schedule 6 Foreign Address and Third Party Designee
–Plus – any pre-existing forms and schedules that may need to be attached
NAEA’s E-@lert Newsletter dated June 29, 2018, says the IRS is calling the new 1040 a building block approach.
NAEA asks its members to send them comments by July 8.
Quoted reactions cast some doubt on the IRS claim that 65% of taxpayers will be able to file using only one schedule with the postcard 1040.
A look at the six building blocks schedules shows:
– Many will need Schedule 1 – Additional Income and Adjustments
– Schedule 3 – Non-refundable credit – Needed by those with education credits, child tax credit, child and dependent care expenses…
– Schedule 4 has SE tax and Household Employment Taxes
– Schedule 6 would be used by many working with a paid preparer, to name that preparer as a third-party designee
Do you think this draft form could be improved? Let the IRS know.