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 In 2017 i made a piano recording (CD). till it got finished and put on the CDs and gotten back to me, it was Thanksgiving, 2018. i could only afford to get 100 of them and i have about 45 left over. i sold some and gave others away to bless people. how do i claim this? i’m confused especiailly since it cost me more for all the recording plus licenses than i made selling them. Reply Just did a test tax return to see what’s happening after Trump screwed us. For the first time in decades, I will have to pay taxes, $784 worth as a single individual. None of my charitable funds qualify. Reply Sounds good. I look forward to using it. Reply Can you file deductions on a 401k withdrawal that you paid federal and state taxes on the new 1040 form? Also, can you file for a deduction for an invention the same year? Reply When will you have a product that we can enter 2018 rough estimates to do tax planning? Reply when will 2017 programs be mailed? Reply I sold shares of Prudential stock acquired through their demutualization in 2001. I have been unable to get a cost basis from anyone, and since I didn’t purchase them I don’t know what to report . Reply My wife and I are retired but we make quarterly tax payments because of the rental income we receive. I am worried about getting stuck with a big tax bill for 2018. I assume rental deductions will be allowed but have not seen any information about allowable deductions. Reply What form and where will it reflect the 20% pass through deduction for businesses? Reply I filed a claim with my insurance company to replace my roof due to hail damage. The insurance company assessed my damage and paid me (minus my deductible) for a new roof. Is the amount the insurance company paid to me considered income and will I have to pay income taxes on it? Thanks! Reply No it is not considered taxable income and is not reported on your tax return. Reply Keep up the emails on tax It is a discrimination lawsuit for back wages. Does Turbo Tax plan to issue the “”Estimated Taxes and W-4 Worksheet” for 2018 returns and if so when will this happen? Reply My husband and I both retired. Our combined pension checks amount to about 48000 ..so will we be able to deduct 24000 with the new tax reform and that’s what we will be taxed on ? Reply Will there still be a TurboTax option for joint returns including small business? Reply Did they eliminate the penalty for healthcare? Reply Any idea when the 2018 versions of turbotax will be available? Reply NOT for 2018, but yes for 2019. However, there will be a way to avoid the penalty under some circumstances, such as fewer than three months without 2018 insurance coverage. Reply For 2018, is home equity mortgage interest for a primary residence deductible if the home equity loan was taken prior to 2018 and used fully to improve the residence? Reply Hi, I have 4 children – are the personal exemptions gone for them also? Reply Today I used the online IRS Withholdings Calculator 2018 to verify that my federal tax withholdings are sufficient to cover my taxes for 2018. I was shocked to learn that my withholdings are way off target and that I will owe over $7,000 if I do not withhold additional monies for the remaining paychecks in 2018!! This comes as a complete shock to me as I hadn’t expected the new tax laws to have such a negative impact on me. FYI, I am single and rent an apt. Reply I did the same thing…used the tax calculator and was stunned that I also owe over $7,000! I’m single also and rent a house…I take 0 deductions. This is totally unexpected! Reply Same here. But not as bad. Single and rent. Thanks Trump. Reply In 2018 I took out a home equity loan for a walk in bath tub as I am unable to use a regular bathtub, I also replaced/upgraded windows in my town home. What deductions may I be eligible for related to the loan and improvements? Reply I do not know about home equity deductions but if you can itemize you can add the cost of your bathroom remodel to your medical/dental expenses. Reply I have been out of work on a medical leave of absence. I received short term disability payments for 90 days that was 60% of my work wage. I am now on LTD at 60% of my wage. Are these disability monies taxable income? Reply My question is not so much about the IRS changes but is about changes Turbotax is making to the software that will require me to buy a new computer because the operating system I will need will not run on my IMac. We have not received a tax refund for many years so there is no incentive for me to spend additional money to stay with you. I have been a long time customer so will turbotax be addressing this issue or will I be leaving you? Reply Can I still deduct costs for rental property? Reply I have not seen anything to indicate costs for rental property would not be allowed. Money spent for maintaining rentals reduces the money made on a rental so it should be deductible. The whole rental industry would be up in arms if costs were not deductible and since most politicians probably own some kind of rental property, costs are most likely still deductible. I found an early copy of the 1040 form for 2018 but it does not show where rental properties would be entered from schedule E, unless it is lumped in with wages, salaries, tips, etc. on line 1. Reply I am struggling to estimate our tax impacts from an installment sale of our business. My best guess at the tax laws indicates we could have minimum AMT, and could maintain Cap Gains below $479K/yr to achieve a lower overall tax rate. If we take the full amount without installments, we loose the benefit of the first 79K at the zero Cap Gain rate per year, and push 2M or more into the 20% rate. The only complication is keeping us below the AMT thresholds and I can’t find any software to do this properly. Even turbotax does it wrong and adds in a NIT tax on the gains, when it would not apply to our sub s sale. When will Turbo tax get this fixed? The estimator in Turbo tax is not using the 2018 AMT calcs or tax laws in general. Reply I got divorced this year, How does that affect my taxes and deductions? ie dependents, and mortgage interest? Reply How do I find out the tax brackets and what the taxes will be for each bracket. We did not do any prepaid tax so far. Are we going to get hit hard? Reply I went hear to look at the 2018 tax tables https://www.irs.gov/pub/irs-dft/i1040tt–dft.pdf Reply That’s all fine and dandy…. WHEN WILL TURBO TAX RELEASE 2018 PRELIMINARY for download. I usually use last year’s to compute this years, but now is impossible. I need to make proactive adjustments now, not in December or January. Reply I just went through the tax forecaster in an attempt to see how my 2018 return might differ from last year with the new rules. No help at all. I have used turbotax for years and all that old 2017 tax information should already be in your system. Why when using the tax forecaster do I need to reenter all that 2017 data? Don’t you have a method of using existing 2017 data and running it against the new rules and coming up with an estimate for 2018? Reply Are medicsl expenses defuctible for 2018? Reply Hi Norma, Yes, they still are deductible if you can itemize your deductions and your medical expenses are more than 7.5% of your adjusted gross income. You can itemize if your deductions like home mortgage interest, property taxes etc are more than $12,000 single and $24,000 married filing jointly. TurboTax will ask you simple questions and give you the deductions and credits your eligible for based on your answers. If you have questions, you can connect live via one-way video to a TurboTax Live CPA or Enrolled Agent at tax-time. Best, Lisa Greene-Lewis Reply Why does taxcaster require me to enter all of my 2017 information? I just want to know my 2018 tax liability? I asked this question a month ago and you never answered it. Reply Hello Lisa, I asked a question about a month ago but didn’t see a reply. My divorce finalized in July of this year. Do I need to complete any paperwork before filing taxes for the 2018 tax year? Thank you, Jody Reply Me and my fiancé have a son together and are living together. She draws social security will I be able to claim her too. And if so how much can I expect to get back for her and my son. Reply Only if her income from social security is not more than $4050. Reply I’m getting a job discrimination settlement. I don’t think the lawyers can be written off this year. Is that true and what about Social Security wages and Medicare tax? Do I have to pay them in? Reply Now that there are no exemptions for dependents can my daughter take the $12,000 standard deduction for single taxpayers for her summer job. Reply Hi Roslyn, The dependent exemption is eliminated, but you can still claim her as a dependent so that you can claim other tax benefits for having dependents like the Child Tax Credit or education credits and deductions that you can only take if you claim someone as a dependent. TurboTax will easily walk you through the deductions and credits and give you the tax deductions and credits you’re eligible for. Remember if you have questions, you can also connect live via one-way video to a TurboTax Live CPA or enrolled agent to get your tax questions answered at tax time. Thank you, Lisa Greene-Lewis Reply Can my 21 year old college student get the single taxpayer standard deduction of 12,000 if she is my dependent for the college tax credit No. It isn’t clear what the standard deduction will be for dependents but it isn’t $12,000. Reply If I am single mother will I still get the same earned income tax as before? Have any of the dependent laws changed? Reply Hi Rhonda, The dependent exemption of $4,050 was eliminated, but you can still get tax benefits for having a dependent like the Earned Income Tax Credit, the Child Tax Credit, and the Child and Dependent Care Credit. TurboTax will ask you simple questions and give you the tax deductions and credits you deserve based on your answers. If you have questions you can connect live via one way video to a TurboTax Live CPA or Enrolled Agent to get your tax questions answered at tax time. Thank you, Lisa Greene-Lewis Reply Do IRAs have the same limits as before? $5,500 for under 55, and $6,500 for over 55? Reply Yes, IRAs still have the same limit. Reply Hi Alvaro, For 2018 the limits are $5,500 and $6,500 if you are 50 and over. Thank you, Lisa Greene-Lewis Reply What are the consequences of a 401k distribution in tax year 2018 and can we anticipate changes in those consequences in tax year 2019? Reply Hi Thomas, A 401K distribution will be taxed at your tax rate unless you rolled it over to another plan within 60 days. It can also put you in a higher tax bracket since it is added to any other income you have. If you are under 59-1/2 you may see a 10% tax penalty unless your distribution was due to a hardship. We will keep you posted on any upcoming changes for tax year 2019. Thank you, Lisa Greene-Lewis Reply Hi,Lisa, I am single and when I do my taxes for 2018,do you still get standard deduction of $12,000.00 in 2018 plus Exemption of $4.050.00 for yourself. Thank You or just $12,000.00 Reply Thank you Lisa Reply Hi Bruce, The personal exemption and dependent exemption of $4,050 is eliminated for 2018, but yes you can get the standard deduction of $12,000 if you are single. TurboTax will ask you simple questions and give you other tax deductions an credits you’re eligible for based on your answers. If you have questions, you can also connect live via one-way video to a TurboTax Live CPA or Enrolled Agent at tax time. Thank you, Lisa Greene-Lewis Reply Thank you Lisa, been using Turbo Tax for long time Where can I go to enter my 2017 return into the 2018 form to see the difference in returns?? Reply Hi Bob, You can use TurboTax TaxCaster which gives you an estimate of your tax liability and gives you a side-by-side comparison of 2017 and 2018. The TurboTax TaxCaster App also tells you what changed in the side-by-side comparison. https://turbotax.intuit.com/tax-tools/calculators/taxcaster/ Thank you, Lisa Greene-Lewis Reply I am 73 year old and still work, I make around 42000.00 per year. My ss is 18156.00 per year, My husband does not work his is 5376 per year and I have a 7 year old and 9 year old and they each get 5376 per year. How much of this is taxable. I pay 4800. per year for insurance on the two girls. Reply My husband is an over the road company truck driver and we have been able to deduct all of his non reimbursed expenses which is everything he needs while on the road. Are you saying we will no longer be able to deduct any expenses? Reply That is correct… all 2% floor deductions on Schedule (A) are history… Reply That’s what I’ve been trying to find out also. No answer as of yet. Reply Regina- there is an answer below from me. I have been taking tax courses this year for my job and am working on one for the Tax Cuts and Jobs Act. You will be deduct expenses just like you always have. (Paragraph 5 ) They only changed the look of the 1040 form and combined 3 into 1. Reply I am also a company over the road truck driver I was told we can no longer deduct perdium, or non reimbursed expenses. Some things are still on Schedule A but not the employee unreimbursed business expenses. That is totally eliminated. What about winning lottery for$ 2,000.00, but I have $2,000.00 amount in losing tickets Reply I notice there are several question o standard deduction for over 65 but no answer would like an answer. Reply Hi Daniel, If you are 65 or over, blind, or disabled you add on $1,600 to the standard deduction if you are single or head of household and $1,300 per person over 65 and over, blind or disabled if you are married filing jointly. Thank you, Lisa Greene-Lewis Hi Lisa, Do I have to be 65 and disabled to claim the extra $1600 deduction married filing jointly? I am disabled but only 60. Thank you. Gary Gambling losses, up to winnings are still there, but you have to exceed the standard deduction to use them. Reply Hi Bruce, You can report your losses up to your winnings if you can claim itemized deductions so your deductions like mortgage interest, property taxes, etc need to be more than the standard deduction($12,000 single and $24,000 married filing jointly). TurboTax will figure out if you are eligible for standard deductions or itemized deductions based on your entries. If you have questions you can connect live via one-way video to our TurboTax Live CPAs or Enrolled Agents to get your questions answered at tax time. Thank you, Lisa Greene-Lewis Reply Thank you for info Thank you Lisa If you itemize you can still claim gambling losses up to the amount of gambling winnings. Reply Lisa, as an independent contractor will I still be filling out Schedule C and using the long form of 1040? Linda Reply Only if they pay you on a 1099-MISC. If you get a W-2 you will file as regular wages. Reply Hi Linda, If your income is reported on a 1099-Misc or 1099-K you will report your income and business expenses on a Schedule C. Your net income or loss still goes on the 1040. TurboTax doesn’t make you know or fill out forms. TurboTax Self-Employed will ask you simple questions about you and your business and give you the deductions and credits you’re eligible based on your entries and will put the information on the correct forms. Thank you, Lisa Greene-Lewis Reply Will the Deluxe version still be sufficient or will I need to buy a different one? As a truck driver, I have always claimed the D.O.T per diem on my taxes each year, and itimize my unreimbursed business expenses. Will this still be available for 2018 Taz year? Reply Yes – they just changed the looks of the 1040 form. You’ll still claim deductions as you always have Reply REGINA BLACK: No ….If the D.O.T. per diem is for a company driver paid on a W2, that deduction and other unreimbursed business expenses are gone starting 2018. Nor can anyone write off union dues, continuing education that does not qualify for education expense at a certified post high school college/job training, etc.(ie conferences and seminars). Nor can teachers write off more than $250 of classroom expenses paid by themselves. Skilled trades cannot write off tools and unreimbursed mileage or other expenses. There is no write off for unreimbursed business expenses for anyone paid on a W2. Only someone with their own business paid on a 1099 Misc. as an independent contractor filing a Schedule C can write off expenses. Not exactly. The 2% misc. deductions are history. Hi Lisa, Previously you stated: “The new tax reform law that was signed into law on December 22, 2017 placed limits the amount of state and local property, income, and sales taxes that can be deducted to $10,000.” “The $10,000 is in aggregate and is the total per tax return. This new law is also for your principal residence and second residence. It would not be for rental property” Could you please clarify your comment above regarding the SALT not being for rental property, specifically in CA. Are you saying there is no limit and SALT’s are fully deductible for rental properties and the $10,000 limitation only applies to principal and second residences? Reply Hi David, Yes, it only applies to your principal and second residence and not rental property. Thank you, Lisa Greene-Lewis Reply Great! Thank you Lisa!! It would be helpful if TT could re-develop TaxCaster to import my 2017 tax forms. I’d pay to use that that! Reply Three times ive asked about head of household and never received an answer Reply « Older Comments Leave a ReplyCancel reply Browse Related Articles Tax Reform TurboTax IRS 1040 Form and Schedules Interactive Tool Self-Employed 1040 vs 1099 (What Are the Form Differences?) | TurboT… Self-Employed Do I Need to File a 1040 If I’m Self-Employed? Taxes 101 Tax Filing Status TurboTax News TurboTax Restores Popular Forms to Desktop Software Tax Tips Tax Payment Options from the IRS Tax Planning Who Can File a Tax Form1040 EZ? Self-Employed How to File Self-Employment Taxes (Understanding the Fo… Business Guide to Small Business Tax Forms, Schedules, and Resou… Income and Investments How Do Game Show Winnings Affect Your Taxes?