IRS Announces They Are Working on a New 1040 Tax Form: Intuit TurboTax Has Got You Covered

Tax Reform

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.

Comments (805) Leave your comment

  1. 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 .

  2. 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.

  3. 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!

  4. Does Turbo Tax plan to issue the “”Estimated Taxes and W-4 Worksheet” for 2018 returns and if so when will this happen?

  5. My husband and I both retired. Our combined pension checks amount to about 48000 will we be able to deduct 24000 with the new tax reform and that’s what we will be taxed on ?

  6. 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?

  7. 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.

    1. 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!

  8. 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?

    1. 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.

  9. 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?

  10. 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?

    1. 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.

  11. 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.

  12. 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?

Leave a Reply