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” Newer Comments » How about medical deductions Reply Thinking of going to drive for Lyft. What kind of deductions would I be able to take under the new law? Lyft claims I can deduct unlimited phone plan, maintenance cost as well as fuel costs. How about the vehicle I purchased? Reply We are no where near the 24K married Std Deduction. It would help and simplify with tax preparation if we could go directly to Standard Deduction without entering values or zero for taxes, interest, medical, charities, etc. Reply Will people filing joint returns be able to deduct property taxes, student loan interest and child care for 2018? Reply Can you deduct your travel mileage for your job.? I travel a lot and have a lot of unpaid mileage. Reply I tried to use turbo tax last year. My only income was social security. I did not work. Turbo tax wouldn’t allow me to use without having a slip for work earnings Reply where can I get a copy of the new 1040 form for 2018 taxes? Reply It would have been nice to have had our moving expenses from an apartment to a house refunded like they used to be. No we didn’t move because of a job, we moved because we finally were in a position to afford a house again. Reply If I give 25k to my child. DonI put it as an expense and does my child has to put it as income on his taxes Reply How does the new tax form work, if you have healthcare through this ACA? Reply Alimony no longer deductible? Is this true? If so is the govt taxing this income twice? Reply Are there going to be mechanisms in place to address taxable state refunds? If SALT exceed 10K, we will not be able to deduct all taxes, yet we may be forced to pay on refund amounts associated with taxes that were not deducted. Reply My daughter turned 16 Feb of this year. (2018) She starts her first job at McDonald’s this week. My question is do I still claim her on my taxes and does she file taxes as well? Or does she file her on taxes and I can no longer claim her? How does this work and do I do? Reply I have been a long time TurboTax Premier user. But i just found out I could no longer use this product for year of 2018 because TurboTax only supports no more than 45 of rental units. Will TurboTax make modification on this issue? Sure hate to learn another tax prep software! I am just so used to the TurboTax software. Reply Could you please explain the changes coming to the healthcare bill penalty compared to last year? Reply How does adding your stock purchases and selling figure into the new tax forms? Which form does one use? Reply I file using the standard deduction; however, I’ve been allowed to apply some of my mortgage interest as a tax credit because I have a mortgage credit certificate. Will that still be allowed? Reply What are the new tax laws pertaining to alimony? I was told that the payer would have to start paying the taxes for it, and the ex would not be taxed on the money she is RECEIVING? It totally doesn’t make sense, so I wanted to verify this. Thank you. Reply I prepare my income tax as expat . I have income as an advisor and basically pay social security taxes.(no federal taxes)This new 1040 will make any difference to me in my next year preparation?May I use turbo tax in my future preparation? May I itemize some of my expenses?. I will turn 70 next year and I am not sure what I am supposed to do. Do I still pay ss taxes? John (a little bit confuse) Thanks Lisa Reply I sold my father home in 2018 it was a inherent to me sold for around 61,999 do I have to pay taxes on this home sold Reply I’ve been using TurboTax for more years than I can remember and hasn’t failed me yet. I’m thankful that you are there to shake it out and I always use deluxe that walks me through everything and I don’t skip anything even if I believe it doesn’t pertain to me. Once I took my tax to a pro to see if he could get me more deductions…..when he got back to me he said I should work for him. The bottom line is unless your tax situation is very complicated which most aren’t anyone who can read and click and keep good records TurboTax is the way to go…..no, I am not getting anything for my testimony. Reply My husband and I are seniors and our personal deduction has been higher than for those not seniors. Will we still get an advantage and the personal deduction be higher so we do not to have to itemize? Reply I am awaiting your answer for personal exemption for seniors? Reply Is the exemption for being over age 65 still in effect for 2018? There is confusing info on this issue online. Thanks. Reply I used turbotax last year, Is there a way I can use that file with the caster file to lear n about this year taxes without having to plug in the numbers individually? Reply Does the new tax bill give any relief to parents paying for child s college education? What is the income phase out rule? Reply some where i heard 26000 deduction if both fiflers over 65 Reply What do the new tax law do for people that file single with dependants with low income Reply I paid 20k cash for a mobile home in FL. It is my primary residrnce. Is any of this tax deductible? Reply Will the college tuition credit still be available? Up to $2500.00 per child? Wade Reply “Postcard sized form”? Is this the nonsense Paul Ryan was showing that required supplemental pages to be added to the “postcard”? Reply Why is there so much publicity about nearly doubling the standard deduction yet absolutely no publicity about that fact that the Personal and Dependent Exemptions are going away. For a single tax payer the original standard deduction of approx $6,000 plus the personal exemption of $4,050 came to $10,050. Now it will be $12,000. Big Deal!! And, if somebody itemized their deductions of more than $6,000 they still received another $4,050 deduction. The publicized reports that tax payers will save a fortune because the standard deduction has doubled is a big fat misconception!! I guess nobody wants the tax payers to know what’s really going on! Thank you Reply My husband and I have always filed as married filing jointly, however he passed away July 3rd. How will I need to file for this year? Reply Hi, Regarding the standard deduction, my wife and I are both over 65. Last year, our standard deduction was $15,200, which included the $12,700 and $1,250 each for being over 65. Will the new tax law have our standard deduction as more than the $24,000 that has been discussed. As an example, could I expect that our total would be $24,000 plus the $2,500 extra we got for being over 65? If not, again this Administration will be sticking it to us, since they eliminated the personal deduction. Thanks. Tom Dalton Reply Will there be any deductions for medical expenses? Reply Has anything been changed or mentioned with the credits? Child credit, Hope credit or EIC? As a student and mom of four kids this is very important to me! Reply Is there still a penalty for not having health insurance for any part of 2017. I will me moving in September and losing my ins. Reply What about alimony I pay? Is it still deductible? Reply I make estimated tax payments but when I prepare my return I have trouble finding the section where I report those payments it would be nice if this question was asked up front so I would not have to scour around looking for the section to report estimated payments Reply Just confirming- the tax deduction for the hundreds of dollars spent by Public School Teachers, on classroom supplies and materials each year, has been wiped out, yes? Please reply. Reply What about hospital bills? Can you claim them on this coming tax return? Just our out of pocket cost for them is over 15,000 dollars. Reply How does it work if you receive EIC? Are you going to receiving less? Reply I’m work as an independent contractor and in the past have been able to claim mileage. Will mileage be an eligible deduction going forward? I’ve been a very longtime Turbo Tax user and have been more than satisfied all those years. Thank you. Reply Deduct property taxes?. Did they change the new tax code? Last I read property taxes for most people were not deductible as well as state income tax and that had people scrambling at the end of 2017 to pay 2018 property taxes in advance which the IRS later ruled you could not do except in very limited instances. Could you explain why there seems to be a disconnect. It would be nice if people would caviot things that only affect small groups of people. Thanks John Reply Hi John, 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. In the past, these taxes have generally been fully tax deductible, but now the aggregate can only be $10,000 total. People were scrambling to pay 2018 property taxes in 2017 since they may not get the full tax deduction for 2018 property taxes since the new law impacts your 2018 taxes(the ones files in 2019) Thank you, Lisa Greene-Lewis Reply We are a law enforcement household and file itemized return. We cannot claim our extra expenses like on previous years ? Hi turbotaxlisa, Are charitable contributions included in the $10K max for deductions? Thanks, Chris Z Lisa, I downloaded the estimator app and don’t see any place to specify state income tax or state sales tax. You indicated that both are included in the $10K aggregate. If they are included, how / where do I specify in the estimator app? I’m using Android Just to clarify Lisa. Is the $10,000 total per property or total per household? Thanks Maria Hi Maria, 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. TurboTax will be up to date with the tax law changes and will guide you through your return at tax time. You will also be able to connect live via one-way video to a TurboTax Live CPA or Enrolled Agent to get your tax questions answered at tax-time. A TurboTax CPA or Enrolled Agent can also review, sign, and file your return at tax-time. Thank you, Lisa Greene-Lewis Thank you, Lisa Greene-Lewis I never could take the deduction starting 1994. This deduction for me dwindled as the laws changed. Just like charity etc I don’t even bother anymore. So I concentrated on paying off the mortgage and saved 35k. Concentrate more on improving what you have control over instead of filling in boxes on forms just to fill squares. The government doesn’t pay your bills and we all need to empower ourselves. I like turbo tax, 20+ years, and appreciate the advice and empowerment I have gained. Good experience, permanent customer. It sounds like the new law did not change the mortgage deduction. Does the $10,000 limit include the deduction for mortgage interest paid? If a married couple who filed joint in the past has state, and local income and property taxes in excess of $10,000 can they each claim $10,000 if they file separate? Hi….we used a HE loan on primary residence as down payment on rental vacation home. is the interest on that deductible? limited to $10,000. property taxes, state income taxes, personal property taxes Reply Would like to understand the 2018 Itemized deductions versus the $24,000 Standard Deduction, and the disapearence of the Personal Deduction. Reply Hi David, As a result of the new tax reform law being passed the end of last year, the standard deduction increased to $12,000 if you file single and to $24,000 married filing jointly. Typically people who are homeowners can itemize their tax deductions since you can deduct expenses like home mortgage interest, property taxes and charitable contributions. If your itemized deductions are under $12,000 single or $24,000 married filing jointly then you would take the standard deduction. If they are more then you would itemize. If you are right at $12,000 or $24,000 in deductions there are things you can do to maximize your deductions like donate more so you can itemize your tax deductions. TurboTax will ask you simple questions about your deductions and figure out whether you can take the standard deduction or itemize. Regarding the personal and dependent exemption those have been eliminated. You can read more about the changes to the law here https://blog.turbotax.intuit.com/tax-reform/tax-reform-2017-passed-heres-what-it-means-to-you-32864/ If you have questions at tax-time you can connect live via one-way video to a TurboTax Live CPA or Enrolled Agent to get your tax questions answered. Thank you, Lisa Greene-Lewis Reply Is there a different deduction and brackets for Head of Household? Can we still file as Head of Household? Are the tax threshhold amounts listed for tax brackets based on gross income or taxable income? Well the point being even though the standard deduction for joint went up, personal deduction is gone the net result is that people file taxes next year in most cases they will pay more especially if they have kids If we are married and want to file separate, will each of us get $12,000 for a standard deduction? If so, does that mean we can each itemize and get the $10,000 for our SALT deduction thereby getting $20,000 for the both of us together? Give us a product to estimate and budget for our tax payments, especially in years like this one. SALT limited to $10K? Bad news that’s 6 months old from a blogger, but I can’t find any substantiation, including the IRS! You guys need to step up and make yourselves more relevant. I’ll pay for it. Reply Hi Jim, You can use TurboTax TaxCaster to estimate your taxes and see how the new tax law will impact your 2018 taxes. The TurboTax TaxCaster app will also give you a side-by-side comparison of your 2017 and 2018 taxes and show you what changed. Here is the link: https://turbotax.intuit.com/tax-tools/calculators/taxcaster/ Regarding the SALT limitation, here is the article we published the day the law passed: https://blog.turbotax.intuit.com/tax-reform/tax-reform-2017-passed-heres-what-it-means-to-you-32864/ Thank you, Lisa Greene-Lewis Reply Thank you My big issue with Tax Caster is that it doesn’t do a good job of estimating taxes if you have self employed income. I believe we are now eligible to deduct 20% of that income under certain income limits. Hi Douglas, TaxCaster should be capturing the changes for self-employed. There are a few reasons you do not get the 20% deduction. If you make over a certain income threshold ($157,500 single, $315,000 married filing jointly)the ability to take the deduction starts to disappear. The TaxCaster app will give you a side by side comparison and will show you exactly where the changes are including the 20% qualified business income deduction. https://itunes.apple.com/us/app/taxcaster-by-turbotax-free/id346184215 Thank you, Lisa Greene-Lewis Great Answer! Your taxcaster onto my PHONE? not a chance. Looks like I can run it on my desktop, but you are asking a LOT of questions whose answers are already recorded on my system in the TurboTax filing from last year. (really, I have 20 years of TT history) In fact, you could use last years data to forecast this year’s return, with the proviso that no significant changes are expected. One could go in to make those changes if known. You are putting too much work on me. I pay you annually so the load is lightened, not added to. So I’ll wait until December or January, and just do the form. Widen your horizons a bit when you spend time on these apps, and forget the smart phones! I use a home-based computer for finances, who wants all that out where anyone can steal it, huh? TaxCaster doesn’t work properly. Could only enter 3 digits for income (not wages). When I started over I couldn’t enter my age. Thia has diminished mt trust. Typically, I use a last year’s software to project the current year situation in July and november. Unfortunately, this is impossible for this year. PLEASE SELL PRELIMINARY 2018 NOW. Yes all forms CannI t be filed but we know what the law is subject to updates. I appreciate there is something like TaxCaster but what I would really like to see is an update to the TurboTax software I purchased to complete my 2017 tax return so I can use the estimated taxes feature in that 2017 software to estimate my taxes for 2018. This would require an update to the 2017 software that would be made available when one re-opens their 2017 tax returns and is asked whether they would like to download any available updates. Already on that upper step of relevancy, Jim. Bam! The TaxCaster is useless if you anticipate less income in 2018 because of retirement. Fantastic answer !! Taxcaster does not ask about the various withholdings from your social security like Fed tax, Medicare Part B, Medicare Part D. So it makes TC useless for anyone affected. Plus, if you try to matchup TC to the desktop WhatIf sheet, you get a huge difference in results. So now it’s August and I still can’t figure out if I need to drastically increase my withholding. I worked all of last year – went on Soc Sec this Feb. My husband has been retired. How can I figure tax liability with that change and the new tax law? Thank you Lisa. This info has been available for awhile, and I appreciate TurboTax doing a great job keeping all updated. Thank you for update. I just want to know if the medical expense deduction is available for the tax year 2018 Phone keyboard always fights me. The comment actually was I thought charitable deductions are to be included. Is this not so? Reply Hi Mandi, You can still deduct charitable contributions if you can itemize your deductions under the new law. TurboTax will ask you simple questions about your deductions and figure out if you can itemize or take the standard deduction. If you have questions at tax-time, you can connect live via one-way video to a TurboTax Live CPA or Enrolled Agent to get your tax questions answered. Thank you, Lisa Greene-Lewis Reply Does this mean that I must be able to itemize $12000 in deductions before I can also deduct charitable contributions? I thought charitable deductions is yicstill be included. Answer please. Reply Yes, they can – if you itemize deductions. The point is that, with the new higher standard deduction, many people will find they do better if they don’t itemize deductions. It now takes a lot more itemized deductions to justify itemizing at all. What you cannot do is to double-dip: to take both the standard deduction and also an itemizable deduction, such as charitable contributions or anything else, on top of it. Reply When will a prototype Form 1040 be available. I would like to plug in my 2017 numbers to see what the tax effect would be. Thanks, Joel Cohn Reply Hi Joel, You can figure out how the new tax law impacts your 2018 taxes by using TurboTax TaxCaster. You can also use the TurboTax TaxCaster app to get a side-by-side comparison of what changed in your tax situation under the new tax law. You can find TurboTax TaxCaster here: https://turbotax.intuit.com/tax-tools/calculators/taxcaster/ Thank you, Lisa Greene-Lewis Reply You TaxCaster doesn’t work for Head of Household filing status… It would be nice to have TaxCaster available to download to my PC instead of my data being in the cloud and used via cell phone – pretty clumsy and less secure overall. I am trying to use taxcaster but it keeps asking questions about 2017. The answers are different for 2018 and isn’t that what taxcaster is for anyway? What’s going on? I even signed in as a TurboTax customer and still it wants 2017 information. I have been a long time user of Turbo Tax. I do have a degree in finance and worked as a controller, General manager, Director of Marketing etc. with the 2 largest Hotel chains in the U.S. I am looking forward to sharing my thoughts and getting alternative feedback as well. Reply Sidney, Can you tell me how to figure out the amount of depreation recapture when a rental house is sold if it was used two years as a rental? Like what forms do you need to file and how can you figure it out in the first place. Reply Very good! Nice job and congratulations! Reply Are their any credits for children and childcare Reply My apologies if this is duplicate, but I don’t see my reply from earlier. Is the planning (W4) function in TurboTax 2017 up to date for the tax law changes coming in 2018? I know that there are changes in withholding, changes/limitations in Schedule A, and in the standard deduction. Does the 2017 product take these into account or work under the previous rules? Is it accurate, or do we need to use something else (e.g., TaxCaster suggested here) to ensure that are withholding are correct for TY2018? Reply Newer 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… Tax Planning You May Still be Eligible to File Your Simple Form 1040… Tax Tips Free File for Simple Form 1040 Returns – 37% Qual… Tax Planning Amend Your Tax Return for Income Changes & Revision… Self-Employed Do I Need to File a 1040 If I’m Self-Employed? Tax Planning Who Can File a Tax Form1040 EZ? Self-Employed How to File Self-Employment Taxes (Understanding the Fo… Tax News E-File is Now Open: Why You Should File Your Taxes Earl… TurboTax News TurboTax Restores Popular Forms to Desktop Software
Thinking of going to drive for Lyft. What kind of deductions would I be able to take under the new law? Lyft claims I can deduct unlimited phone plan, maintenance cost as well as fuel costs. How about the vehicle I purchased? Reply
We are no where near the 24K married Std Deduction. It would help and simplify with tax preparation if we could go directly to Standard Deduction without entering values or zero for taxes, interest, medical, charities, etc. Reply
Will people filing joint returns be able to deduct property taxes, student loan interest and child care for 2018? Reply
Can you deduct your travel mileage for your job.? I travel a lot and have a lot of unpaid mileage. Reply
I tried to use turbo tax last year. My only income was social security. I did not work. Turbo tax wouldn’t allow me to use without having a slip for work earnings Reply
It would have been nice to have had our moving expenses from an apartment to a house refunded like they used to be. No we didn’t move because of a job, we moved because we finally were in a position to afford a house again. Reply
If I give 25k to my child. DonI put it as an expense and does my child has to put it as income on his taxes Reply
Are there going to be mechanisms in place to address taxable state refunds? If SALT exceed 10K, we will not be able to deduct all taxes, yet we may be forced to pay on refund amounts associated with taxes that were not deducted. Reply
My daughter turned 16 Feb of this year. (2018) She starts her first job at McDonald’s this week. My question is do I still claim her on my taxes and does she file taxes as well? Or does she file her on taxes and I can no longer claim her? How does this work and do I do? Reply
I have been a long time TurboTax Premier user. But i just found out I could no longer use this product for year of 2018 because TurboTax only supports no more than 45 of rental units. Will TurboTax make modification on this issue? Sure hate to learn another tax prep software! I am just so used to the TurboTax software. Reply
Could you please explain the changes coming to the healthcare bill penalty compared to last year? Reply
How does adding your stock purchases and selling figure into the new tax forms? Which form does one use? Reply
I file using the standard deduction; however, I’ve been allowed to apply some of my mortgage interest as a tax credit because I have a mortgage credit certificate. Will that still be allowed? Reply
What are the new tax laws pertaining to alimony? I was told that the payer would have to start paying the taxes for it, and the ex would not be taxed on the money she is RECEIVING? It totally doesn’t make sense, so I wanted to verify this. Thank you. Reply
I prepare my income tax as expat . I have income as an advisor and basically pay social security taxes.(no federal taxes)This new 1040 will make any difference to me in my next year preparation?May I use turbo tax in my future preparation? May I itemize some of my expenses?. I will turn 70 next year and I am not sure what I am supposed to do. Do I still pay ss taxes? John (a little bit confuse) Thanks Lisa Reply
I sold my father home in 2018 it was a inherent to me sold for around 61,999 do I have to pay taxes on this home sold Reply
I’ve been using TurboTax for more years than I can remember and hasn’t failed me yet. I’m thankful that you are there to shake it out and I always use deluxe that walks me through everything and I don’t skip anything even if I believe it doesn’t pertain to me. Once I took my tax to a pro to see if he could get me more deductions…..when he got back to me he said I should work for him. The bottom line is unless your tax situation is very complicated which most aren’t anyone who can read and click and keep good records TurboTax is the way to go…..no, I am not getting anything for my testimony. Reply
My husband and I are seniors and our personal deduction has been higher than for those not seniors. Will we still get an advantage and the personal deduction be higher so we do not to have to itemize? Reply
Is the exemption for being over age 65 still in effect for 2018? There is confusing info on this issue online. Thanks. Reply
I used turbotax last year, Is there a way I can use that file with the caster file to lear n about this year taxes without having to plug in the numbers individually? Reply
Does the new tax bill give any relief to parents paying for child s college education? What is the income phase out rule? Reply
I paid 20k cash for a mobile home in FL. It is my primary residrnce. Is any of this tax deductible? Reply
“Postcard sized form”? Is this the nonsense Paul Ryan was showing that required supplemental pages to be added to the “postcard”? Reply
Why is there so much publicity about nearly doubling the standard deduction yet absolutely no publicity about that fact that the Personal and Dependent Exemptions are going away. For a single tax payer the original standard deduction of approx $6,000 plus the personal exemption of $4,050 came to $10,050. Now it will be $12,000. Big Deal!! And, if somebody itemized their deductions of more than $6,000 they still received another $4,050 deduction. The publicized reports that tax payers will save a fortune because the standard deduction has doubled is a big fat misconception!! I guess nobody wants the tax payers to know what’s really going on! Thank you Reply
My husband and I have always filed as married filing jointly, however he passed away July 3rd. How will I need to file for this year? Reply
Hi, Regarding the standard deduction, my wife and I are both over 65. Last year, our standard deduction was $15,200, which included the $12,700 and $1,250 each for being over 65. Will the new tax law have our standard deduction as more than the $24,000 that has been discussed. As an example, could I expect that our total would be $24,000 plus the $2,500 extra we got for being over 65? If not, again this Administration will be sticking it to us, since they eliminated the personal deduction. Thanks. Tom Dalton Reply
Has anything been changed or mentioned with the credits? Child credit, Hope credit or EIC? As a student and mom of four kids this is very important to me! Reply
Is there still a penalty for not having health insurance for any part of 2017. I will me moving in September and losing my ins. Reply
I make estimated tax payments but when I prepare my return I have trouble finding the section where I report those payments it would be nice if this question was asked up front so I would not have to scour around looking for the section to report estimated payments Reply
Just confirming- the tax deduction for the hundreds of dollars spent by Public School Teachers, on classroom supplies and materials each year, has been wiped out, yes? Please reply. Reply
What about hospital bills? Can you claim them on this coming tax return? Just our out of pocket cost for them is over 15,000 dollars. Reply
I’m work as an independent contractor and in the past have been able to claim mileage. Will mileage be an eligible deduction going forward? I’ve been a very longtime Turbo Tax user and have been more than satisfied all those years. Thank you. Reply
Deduct property taxes?. Did they change the new tax code? Last I read property taxes for most people were not deductible as well as state income tax and that had people scrambling at the end of 2017 to pay 2018 property taxes in advance which the IRS later ruled you could not do except in very limited instances. Could you explain why there seems to be a disconnect. It would be nice if people would caviot things that only affect small groups of people. Thanks John Reply
Hi John, 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. In the past, these taxes have generally been fully tax deductible, but now the aggregate can only be $10,000 total. People were scrambling to pay 2018 property taxes in 2017 since they may not get the full tax deduction for 2018 property taxes since the new law impacts your 2018 taxes(the ones files in 2019) Thank you, Lisa Greene-Lewis Reply
We are a law enforcement household and file itemized return. We cannot claim our extra expenses like on previous years ?
Hi turbotaxlisa, Are charitable contributions included in the $10K max for deductions? Thanks, Chris Z
Lisa, I downloaded the estimator app and don’t see any place to specify state income tax or state sales tax. You indicated that both are included in the $10K aggregate. If they are included, how / where do I specify in the estimator app? I’m using Android
Hi Maria, 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. TurboTax will be up to date with the tax law changes and will guide you through your return at tax time. You will also be able to connect live via one-way video to a TurboTax Live CPA or Enrolled Agent to get your tax questions answered at tax-time. A TurboTax CPA or Enrolled Agent can also review, sign, and file your return at tax-time. Thank you, Lisa Greene-Lewis Thank you, Lisa Greene-Lewis
I never could take the deduction starting 1994. This deduction for me dwindled as the laws changed. Just like charity etc I don’t even bother anymore. So I concentrated on paying off the mortgage and saved 35k. Concentrate more on improving what you have control over instead of filling in boxes on forms just to fill squares. The government doesn’t pay your bills and we all need to empower ourselves. I like turbo tax, 20+ years, and appreciate the advice and empowerment I have gained. Good experience, permanent customer.
It sounds like the new law did not change the mortgage deduction. Does the $10,000 limit include the deduction for mortgage interest paid?
If a married couple who filed joint in the past has state, and local income and property taxes in excess of $10,000 can they each claim $10,000 if they file separate?
Hi….we used a HE loan on primary residence as down payment on rental vacation home. is the interest on that deductible?
Would like to understand the 2018 Itemized deductions versus the $24,000 Standard Deduction, and the disapearence of the Personal Deduction. Reply
Hi David, As a result of the new tax reform law being passed the end of last year, the standard deduction increased to $12,000 if you file single and to $24,000 married filing jointly. Typically people who are homeowners can itemize their tax deductions since you can deduct expenses like home mortgage interest, property taxes and charitable contributions. If your itemized deductions are under $12,000 single or $24,000 married filing jointly then you would take the standard deduction. If they are more then you would itemize. If you are right at $12,000 or $24,000 in deductions there are things you can do to maximize your deductions like donate more so you can itemize your tax deductions. TurboTax will ask you simple questions about your deductions and figure out whether you can take the standard deduction or itemize. Regarding the personal and dependent exemption those have been eliminated. You can read more about the changes to the law here https://blog.turbotax.intuit.com/tax-reform/tax-reform-2017-passed-heres-what-it-means-to-you-32864/ If you have questions at tax-time you can connect live via one-way video to a TurboTax Live CPA or Enrolled Agent to get your tax questions answered. Thank you, Lisa Greene-Lewis Reply
Is there a different deduction and brackets for Head of Household? Can we still file as Head of Household?
Well the point being even though the standard deduction for joint went up, personal deduction is gone the net result is that people file taxes next year in most cases they will pay more especially if they have kids
If we are married and want to file separate, will each of us get $12,000 for a standard deduction? If so, does that mean we can each itemize and get the $10,000 for our SALT deduction thereby getting $20,000 for the both of us together?
Give us a product to estimate and budget for our tax payments, especially in years like this one. SALT limited to $10K? Bad news that’s 6 months old from a blogger, but I can’t find any substantiation, including the IRS! You guys need to step up and make yourselves more relevant. I’ll pay for it. Reply
Hi Jim, You can use TurboTax TaxCaster to estimate your taxes and see how the new tax law will impact your 2018 taxes. The TurboTax TaxCaster app will also give you a side-by-side comparison of your 2017 and 2018 taxes and show you what changed. Here is the link: https://turbotax.intuit.com/tax-tools/calculators/taxcaster/ Regarding the SALT limitation, here is the article we published the day the law passed: https://blog.turbotax.intuit.com/tax-reform/tax-reform-2017-passed-heres-what-it-means-to-you-32864/ Thank you, Lisa Greene-Lewis Reply
My big issue with Tax Caster is that it doesn’t do a good job of estimating taxes if you have self employed income. I believe we are now eligible to deduct 20% of that income under certain income limits.
Hi Douglas, TaxCaster should be capturing the changes for self-employed. There are a few reasons you do not get the 20% deduction. If you make over a certain income threshold ($157,500 single, $315,000 married filing jointly)the ability to take the deduction starts to disappear. The TaxCaster app will give you a side by side comparison and will show you exactly where the changes are including the 20% qualified business income deduction. https://itunes.apple.com/us/app/taxcaster-by-turbotax-free/id346184215 Thank you, Lisa Greene-Lewis
Your taxcaster onto my PHONE? not a chance. Looks like I can run it on my desktop, but you are asking a LOT of questions whose answers are already recorded on my system in the TurboTax filing from last year. (really, I have 20 years of TT history) In fact, you could use last years data to forecast this year’s return, with the proviso that no significant changes are expected. One could go in to make those changes if known. You are putting too much work on me. I pay you annually so the load is lightened, not added to. So I’ll wait until December or January, and just do the form. Widen your horizons a bit when you spend time on these apps, and forget the smart phones! I use a home-based computer for finances, who wants all that out where anyone can steal it, huh?
TaxCaster doesn’t work properly. Could only enter 3 digits for income (not wages). When I started over I couldn’t enter my age. Thia has diminished mt trust.
Typically, I use a last year’s software to project the current year situation in July and november. Unfortunately, this is impossible for this year. PLEASE SELL PRELIMINARY 2018 NOW. Yes all forms CannI t be filed but we know what the law is subject to updates.
I appreciate there is something like TaxCaster but what I would really like to see is an update to the TurboTax software I purchased to complete my 2017 tax return so I can use the estimated taxes feature in that 2017 software to estimate my taxes for 2018. This would require an update to the 2017 software that would be made available when one re-opens their 2017 tax returns and is asked whether they would like to download any available updates.
Taxcaster does not ask about the various withholdings from your social security like Fed tax, Medicare Part B, Medicare Part D. So it makes TC useless for anyone affected. Plus, if you try to matchup TC to the desktop WhatIf sheet, you get a huge difference in results. So now it’s August and I still can’t figure out if I need to drastically increase my withholding.
I worked all of last year – went on Soc Sec this Feb. My husband has been retired. How can I figure tax liability with that change and the new tax law?
Thank you Lisa. This info has been available for awhile, and I appreciate TurboTax doing a great job keeping all updated.
Thank you for update. I just want to know if the medical expense deduction is available for the tax year 2018
Phone keyboard always fights me. The comment actually was I thought charitable deductions are to be included. Is this not so? Reply
Hi Mandi, You can still deduct charitable contributions if you can itemize your deductions under the new law. TurboTax will ask you simple questions about your deductions and figure out if you can itemize or take the standard deduction. If you have questions at tax-time, you can connect live via one-way video to a TurboTax Live CPA or Enrolled Agent to get your tax questions answered. Thank you, Lisa Greene-Lewis Reply
Does this mean that I must be able to itemize $12000 in deductions before I can also deduct charitable contributions?
Yes, they can – if you itemize deductions. The point is that, with the new higher standard deduction, many people will find they do better if they don’t itemize deductions. It now takes a lot more itemized deductions to justify itemizing at all. What you cannot do is to double-dip: to take both the standard deduction and also an itemizable deduction, such as charitable contributions or anything else, on top of it. Reply
When will a prototype Form 1040 be available. I would like to plug in my 2017 numbers to see what the tax effect would be. Thanks, Joel Cohn Reply
Hi Joel, You can figure out how the new tax law impacts your 2018 taxes by using TurboTax TaxCaster. You can also use the TurboTax TaxCaster app to get a side-by-side comparison of what changed in your tax situation under the new tax law. You can find TurboTax TaxCaster here: https://turbotax.intuit.com/tax-tools/calculators/taxcaster/ Thank you, Lisa Greene-Lewis Reply
It would be nice to have TaxCaster available to download to my PC instead of my data being in the cloud and used via cell phone – pretty clumsy and less secure overall.
I am trying to use taxcaster but it keeps asking questions about 2017. The answers are different for 2018 and isn’t that what taxcaster is for anyway? What’s going on? I even signed in as a TurboTax customer and still it wants 2017 information.
I have been a long time user of Turbo Tax. I do have a degree in finance and worked as a controller, General manager, Director of Marketing etc. with the 2 largest Hotel chains in the U.S. I am looking forward to sharing my thoughts and getting alternative feedback as well. Reply
Sidney, Can you tell me how to figure out the amount of depreation recapture when a rental house is sold if it was used two years as a rental? Like what forms do you need to file and how can you figure it out in the first place. Reply
My apologies if this is duplicate, but I don’t see my reply from earlier. Is the planning (W4) function in TurboTax 2017 up to date for the tax law changes coming in 2018? I know that there are changes in withholding, changes/limitations in Schedule A, and in the standard deduction. Does the 2017 product take these into account or work under the previous rules? Is it accurate, or do we need to use something else (e.g., TaxCaster suggested here) to ensure that are withholding are correct for TY2018? Reply