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 » I take it that elderly exemption is gone. Reply Are there still deductions for health insurance and medical expenses? Gordon Sorensen Augest 5, 2018 Reply Hi Lisa, i am filing single, head of household with my father as my dependent, he just passed away a few days ago. What can you advise me, so that I can still get my money back, thank you Reply What are the new laws affecting tax deductions for interest paid on Home Equity 2nd mortgages. Reply How do the new laws impact those who run a business using a home office (no inventory)? Reply Please explain the private high school tax deduction of $10,000. Our daughter will be an 11th grader and this deductions will be an enormous help. Thank you. Reply Will state sales tax still be a deductible item in Texas? Reply Can I make a Qualified Charitable Deduction QCD gift from my IRA (I am 72) to a donor advised fund? Reply Are medical expenses still deductible under the new tax law? If so, at what percent? Reply COUPLE FILING JOINTLY. STSNDARD DEDUCTION IS $24000.0. HOW ABOUT BOTH ARE ABOVE 65 YEARS OR OLDER. IS IT $24000 OR $26600? VAN YOU REPLY. THANK YOU Reply When will tax forms be available? My mother in law’s estate can’t be settled until taxes are filed( she only lived one month in 2018) Reply Have personal exemptions been eliminated? Reply I have turned 70 in 2018, i am aware i need to withdrawal from my 401K and IRA. Do i need to withdrawal from both accounts or is there a standard amount to withdrawal? Reply Will health care insurance payments, Long Term Care payments and generally what was previously deducible along with Medicare health continue to be deducible. I average $25,000 a year between my wife and it has been significant in itemization filing for us. Reply What about HELOC interest..still a deduction in 2018? Reply What is happening with parsonage allowances? Reply Can you provide a actual summary of the changes to help with tax planning? All these questions are a result of your lack of actual information on the tax changes. Reply Will rental income qualify for the 20% business deduction? Reply My husband is in a union and works out of town quite a lot. Will he be able to write off his travel expenses as itemized deductions? He does NOT get any reimbursement from his employers. Will he be able to use the standard federal per diem rate? Reply I have a long-term capital loss from the sale of investment property. Will the $3,000 LTCL still be available on the new 1949? Helen Reply Will Schedule E (Form 1040) still be included? Reply I thought I read that the standard deduction for taxpayers over 65 is $26,600. Is that correct? Reply why did you not list that,medical expenses and donations are still part of Itemized deductions;? You listed only home mortgage interest, interest on home credit loans, property taxes, and some local and state taxes. Reply With the new tax laws will people like me raising are grandchildren(s) be able to get the the child tax credit, I’ve never been able to get this since I’ve had them last 9 years (I have full custody of them) because I have no taxable income (disablty from Veterns Affairs, and Social security) ? Reply TurboTaxLisa, you’ve done an outstanding job answering all of these questions. Just wanted to throw some props your way. Reply You need to clarify: 1) There are no longer any “exemptions” and 2) there are increments in the standard deduction amount for anyone above the age of 65. Reply I overestimated my 2017 state income tax and claimed whole amount on my 2017 Federal income tax return itemized deductions. Will the refund received in 2018 be taxable on my 2018 federal income tax return? Reply How will contributions of goods be handled? I am downsizing and will have a lot of contributions of goods. I normally take pictures, get a receipt from the charity and use Turbo Tax to estimate the amount the item is worth. Reply Will Turbo Tax tell me the impact the new law has on me by comparing what my taxes would have been had the new law not passed to what they are now using the new regulations? Reply Any idea how this will impact State taxes (Maryland, for example). I won’t be able to itemize next year because of the $10k limit and will use the standard $24K deduction. This is less than I used to be able to itemize. For federal taxes it comes out about the same with the lowered bracket percentages. But for state, my taxable income is going to appear to be higher and my taxes will likely be going up. Reply Hi any changes regarding mandatory disbursement’s from IRA and taxes when turning 701/2 thanx Reply Any changes in capital gain on sale of home and not purchase another Reply I’m still confused. You told Maria the $10,000 limit on property tax deductions was “in the aggregate”(which I interpret as including rental property taxes) and you said that included a principal residence and second home, but then added that rental property was not included under the new law. So rental property tax deductions are or are not still allowed. Reply What are the changes for rental property. I own a two unit. I plan to do some major improvements of $15,000 or so. Will these still be handle as in the past? Reply Can medical expenses be itemized ? Reply What about medical deductions, mileage to and from doctors, non-prescription, doctor-ordered medicines, medically necessary devices not made for by Medicare/Medicaid, etc? I do not own property, but spend a large chunk of my Social Security Disability on such items. These were always deductable and gave me a modest refund every year. Are medical costs, co-pays, etc, no longer deductable? Reply where do you enter real property income and expenses in tax calculator Reply Question. With an adult child who is unable to work but not yet on ssi, will there be a deduction for her care? Thanks. Reply Hi Lisa, What is the formula to figure out house depreciation if you have a rental? I think it was between line 18-21. I wasn’t able to figure this out. Thank you, Lisa Reply I find the Turbo tax form for Missouri, has the question for receiving social security, or not, reversed from the Missouri tax form, which has been causing confusion the last two years. Reply Mississippi DOR website indicates you can deduct the standard deduction on your 1040, but still deduct all your itemized deductions minus state income on the Mississippi state income tax return. They say use the Federal Scedule A as a worksheet. Will Turbo Tax handle that automatically. Glad to see that did not change, sincer their Standard deduction is less than $5,000 for married couple. Reply Does the standard deduction increase for taxpayers 65 and over and for blind people as well and if so how much? Reply Comments are great, but I have one question I did not see asked. Are the deductions for medical still aiiowed: like premiums for insurance: etc? Reply Is child day care still deductible? Reply What about self employment deductions? Are still,able to deduct the expenses from the gross profit? Reply What are the changes when you sell your home? Reply I have been filing ‘married filing separately’ since our separation. Now, I heard I can file ‘married filing jointly” even when I am still living in my own residence. Is this true and is there any negative consequences? Reply If you rent out part of your home, how does that impact the $10,000 limit on property taxes and mortgage interest? If the house were fully leased and not partly owner-occupied, all the taxes and interest would be deductible (with certain limits regarding passive income). Reply Will the deduction for “born before January 2,1953” for the elderly still be an option, which increases the standard deduction amount? Reply We have been using Turbo Tax Home and Business because of self-employment (1099) income. And, we are paying estimated taxes. If, though, we qualify for the Standard Deduction, will it be necessary to use Home & Business or can we use a lower version? 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Are there still deductions for health insurance and medical expenses? Gordon Sorensen Augest 5, 2018 Reply
Hi Lisa, i am filing single, head of household with my father as my dependent, he just passed away a few days ago. What can you advise me, so that I can still get my money back, thank you Reply
Please explain the private high school tax deduction of $10,000. Our daughter will be an 11th grader and this deductions will be an enormous help. Thank you. Reply
Can I make a Qualified Charitable Deduction QCD gift from my IRA (I am 72) to a donor advised fund? Reply
COUPLE FILING JOINTLY. STSNDARD DEDUCTION IS $24000.0. HOW ABOUT BOTH ARE ABOVE 65 YEARS OR OLDER. IS IT $24000 OR $26600? VAN YOU REPLY. THANK YOU Reply
When will tax forms be available? My mother in law’s estate can’t be settled until taxes are filed( she only lived one month in 2018) Reply
I have turned 70 in 2018, i am aware i need to withdrawal from my 401K and IRA. Do i need to withdrawal from both accounts or is there a standard amount to withdrawal? Reply
Will health care insurance payments, Long Term Care payments and generally what was previously deducible along with Medicare health continue to be deducible. I average $25,000 a year between my wife and it has been significant in itemization filing for us. Reply
Can you provide a actual summary of the changes to help with tax planning? All these questions are a result of your lack of actual information on the tax changes. Reply
My husband is in a union and works out of town quite a lot. Will he be able to write off his travel expenses as itemized deductions? He does NOT get any reimbursement from his employers. Will he be able to use the standard federal per diem rate? Reply
I have a long-term capital loss from the sale of investment property. Will the $3,000 LTCL still be available on the new 1949? Helen Reply
I thought I read that the standard deduction for taxpayers over 65 is $26,600. Is that correct? Reply
why did you not list that,medical expenses and donations are still part of Itemized deductions;? You listed only home mortgage interest, interest on home credit loans, property taxes, and some local and state taxes. Reply
With the new tax laws will people like me raising are grandchildren(s) be able to get the the child tax credit, I’ve never been able to get this since I’ve had them last 9 years (I have full custody of them) because I have no taxable income (disablty from Veterns Affairs, and Social security) ? Reply
TurboTaxLisa, you’ve done an outstanding job answering all of these questions. Just wanted to throw some props your way. Reply
You need to clarify: 1) There are no longer any “exemptions” and 2) there are increments in the standard deduction amount for anyone above the age of 65. Reply
I overestimated my 2017 state income tax and claimed whole amount on my 2017 Federal income tax return itemized deductions. Will the refund received in 2018 be taxable on my 2018 federal income tax return? Reply
How will contributions of goods be handled? I am downsizing and will have a lot of contributions of goods. I normally take pictures, get a receipt from the charity and use Turbo Tax to estimate the amount the item is worth. Reply
Will Turbo Tax tell me the impact the new law has on me by comparing what my taxes would have been had the new law not passed to what they are now using the new regulations? Reply
Any idea how this will impact State taxes (Maryland, for example). I won’t be able to itemize next year because of the $10k limit and will use the standard $24K deduction. This is less than I used to be able to itemize. For federal taxes it comes out about the same with the lowered bracket percentages. But for state, my taxable income is going to appear to be higher and my taxes will likely be going up. Reply
I’m still confused. You told Maria the $10,000 limit on property tax deductions was “in the aggregate”(which I interpret as including rental property taxes) and you said that included a principal residence and second home, but then added that rental property was not included under the new law. So rental property tax deductions are or are not still allowed. Reply
What are the changes for rental property. I own a two unit. I plan to do some major improvements of $15,000 or so. Will these still be handle as in the past? Reply
What about medical deductions, mileage to and from doctors, non-prescription, doctor-ordered medicines, medically necessary devices not made for by Medicare/Medicaid, etc? I do not own property, but spend a large chunk of my Social Security Disability on such items. These were always deductable and gave me a modest refund every year. Are medical costs, co-pays, etc, no longer deductable? Reply
Question. With an adult child who is unable to work but not yet on ssi, will there be a deduction for her care? Thanks. Reply
Hi Lisa, What is the formula to figure out house depreciation if you have a rental? I think it was between line 18-21. I wasn’t able to figure this out. Thank you, Lisa Reply
I find the Turbo tax form for Missouri, has the question for receiving social security, or not, reversed from the Missouri tax form, which has been causing confusion the last two years. Reply
Mississippi DOR website indicates you can deduct the standard deduction on your 1040, but still deduct all your itemized deductions minus state income on the Mississippi state income tax return. They say use the Federal Scedule A as a worksheet. Will Turbo Tax handle that automatically. Glad to see that did not change, sincer their Standard deduction is less than $5,000 for married couple. Reply
Does the standard deduction increase for taxpayers 65 and over and for blind people as well and if so how much? Reply
Comments are great, but I have one question I did not see asked. Are the deductions for medical still aiiowed: like premiums for insurance: etc? Reply
What about self employment deductions? Are still,able to deduct the expenses from the gross profit? Reply
I have been filing ‘married filing separately’ since our separation. Now, I heard I can file ‘married filing jointly” even when I am still living in my own residence. Is this true and is there any negative consequences? Reply
If you rent out part of your home, how does that impact the $10,000 limit on property taxes and mortgage interest? If the house were fully leased and not partly owner-occupied, all the taxes and interest would be deductible (with certain limits regarding passive income). Reply
Will the deduction for “born before January 2,1953” for the elderly still be an option, which increases the standard deduction amount? Reply
We have been using Turbo Tax Home and Business because of self-employment (1099) income. And, we are paying estimated taxes. If, though, we qualify for the Standard Deduction, will it be necessary to use Home & Business or can we use a lower version? Reply