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 » Hi, I have a landscape business & include it in my personal married tax return. Is that a wise thing to do or should I file separately. How should labor and material be itemized for business return? Reply Does the NEW and IMPROVED product solve the ‘start the product’ and ‘write’ and ‘update’ the return problems? (As your records confirm, this is a 6 month old problem!) Reply How does it affect Foreign Earned Income deductions? Reply I have been using TurboTax to prepare and submit my Federal and State taxes for YEARS. I have always prepared them using iMac desk top computer. I understand that TurboTax will cut off many of your users this year by limiting the TurboTax compatibility to specific Mac OS software that is only in the latest computers. What is the story? Will I be forced to use a different software package from other than TurboTax? Reply I want to know if someone doesn’t have any health insurance will be able to fill for tax? Reply So, even though we will no longer be able to reduce taxable income by exemptions, will there be a spot on the new return to show how many dependents we have? Aren’t some itemized deductions and credits only available to us if the individual is a dependent, i.e. Hope Credits for our kids or medical expenses for elderly relatives? Reply Is mortgage interest deduction the same as last year or has that changed? Reply “The new form consolidates the three versions of the 1040 into one simple form…and increase the number of tax schedules supporting Form 1040 by six additional forms.” Only the IRS would call this a “simplification”. Can’t wait to see how easy the instructions are. Reply Our 2017 tax return showed $15,200 standard deduction and $8,100 exemptions making $23,300 as our total deductions. With the elimation of personal exemptions for 2018, we are actually getting only additional $700 in deductions. Is this for real? Reply Can I still deduct my medical expenses beyond the 7.5 percent limit, if I start using the new 24,000 standard deduction for married couples. Reply Our prescriptions and premium payments deductible Reply This year I have to add my student loans as income because the government paid them off. I am on disability and only work part-time. How is this going to effect me? Reply Did the AMT go away as part of the new law? Reply How about Uber or Lyft income and mileage deductions? Reply I have always had to use Turbo Tax Premier because my income in mostly through investments. How will that be handled with the new tax laws, and will Premier still be needed to to cover investment income? Reply are there will have Health insurance penalty ? Reply What are the IRS and state rules on capital gains from selling an inherited house (never lived in by heirs)? A deed grating 1% remainder interest was made in 2006 for three beneficiaries. Upon the home owner’s death earlier this year (2018), the three heirs were granted ownership in the house effective on the day of death (this was automatic, we did not do anything). The house was recently sold, five months after the ownership changed. One heir is in NC where the house is, and two are out of state. How does each do taxes and has anything changed from before the new tax law? Reply Willing we need to enter QCDs separately or deduct them ourselves from our 1099R taxable amount? Reply What is the new deduction for dependents if there is one? Single parent with 1 child. Reply How does the new tax law affect 1099 income? Reply Will the price of TurboTax be lowered, to reflect the more simplified tax forms? There will be fewer forms to deal with; I would think the price of your product should take that into consideration. Reply What will be the standard deduction for those over 65. ? Reply What is the standard deduction for a dependent. My college age daughter has about 10,000 income from work and investments. Reply How are you handling clergy housing allowance? Reply I am paying off my mortgage July 2018 in a lump sum settlement. The difference in owed and settled is $11,000. What is the tax law on the forgiven amount? Reply I’m new to this single status. Will I be able to get a tax credit for funeral expenses Reply Removal of child exemption is mentioned here. Could you clarify? For those of us with children, is the new tax law removing the $4K exemption per child? Reply Will the ‘It’s Deductible’ program still be available and up-to-date for use with the 2018 tax filing? Reply If I am filing married jointly what is the deduction amount I have to meet for any of it to count ? For example mortgage interest, medical premiums…. Reply So, the $24,000 applies to those who can’t reach that amount through deductions? What about medical deductions? What is the limit here or did that go away? What about deductions if you do part of your business in your home? Reply Clergy persons (pastors, missionaries, etc) have been allowed a housing allowance in the past; will housing allowance still be allowed Reply Hi, Does contribution to Oregon 529 college savings plan reduce owing state taxes in Oregon. What is the limit and suppose if my state tax is $10000 if I contribute to Oregon 529 let’s say $4000 what will be my final state tax owing. Thank you. Reply Will there be a penalty for not having health insurance Reply Standard deduction for married filing jointly is $24,000. What about couples who are over 65 year in age. Is there added deduction and how much? Reply We sold a property in February that we lived in for 5 years and rented for the past 11 years Before the tax law was changed affecting the capital gains rate, we were told by a tax consultant that we would have to pay about $30K in taxes, since we were not going to remain in the rental market. With the top capital tax rate around 15%, versus 30%, will our taxes drop to about $15K? Reply Did they do away with Head of Household? Reply what is the medical deduction going to be in 2018 ????? Reply will there be a penalty for having short term medical insurance or no medical insurance coverage? this is a @#$#@#!@ rip off for working people. Reply I have been using Turbotax Deluxe since 2009. This past spring I received a note that this is the last year I can use Turbotax on my iMac because the OS is too old. I don’t plan to replace my Mac. Is there an online version comparable to Deluxe that is accessible via my iMac? Thx. Reply How will the new tax law affect the child credit I just got a baby how much will be the credit for 2018 Reply What is the tax penalty for not having health insurance per month in 2018? Reply What about Unreimbursed Business Expenses? Can we still claim? Reply Are medical expenses still deductible and if yes, what briefly are the rules? Reply What about Head of Household deduction? Reply Is Head of Household still a filing status? (Such as for single with dependents). I read somewhere that it would have an $18,000 standard deduction. Reply Is Head of Household still a filing status? I recall something about an $18,000 standard deduction for head of household. (Single with dependents) Reply So does the new law do away with any deduction if you are paying all the expenses for a elderly parent. Reply HI Stan, Not all of them, but it does get rid of the dependent exemption which was $4,050 in 2017. You may be able to get a new $500 credit for a non-child dependent. You may also be able to claim your parent’s medical expenses. TurboTax will be up to date with these new tax laws at tax-time and will guide you with simple 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. Our TurboTax Live CPAs and Enrolled Agents can even review, sign and file your return at tax time. Thank you, Lisa Greene-Lewis Reply So the new tax code is doing away with the dependent exemptions of $4,050 in 2017, does that include you children or is that just for the qualifying relatives? Lisa how will rental property be handled in 2018 I’m more concerned about the change in tax brackets could you give examples If your parent is considered a dependent, do you get the $12,500 exemption for the parent? can you send me a template to use on how the new taxes affect me. I need to know. I do not care about a 1040 form. Other tax assistance companies and CPA’s have done this. Has turbo tax? I have questions regarding past credits & deductions from this recent tax year that I didn’t Claim. How to go about refilling my taxes . Do you know if filing married separately is better than jointly under the new tax law? Reply Does you elderly parent get social security or a pension, on Medicaid or Medicare? Reply How will the Federal changes affect my Kansas State return? Reply I am retired clergy. In past years I have been allowed to deduct housing expenses accrued during the tax year. Under the new tax laws will this still be an allowable deduction? Reply ABOVE ANSWER BY STAN IS WRONG. PERSON ABOVE 65 YEARS OR OLDER CAN INCREASE STANDAR DEDUCTION BY $1300 PER PERSON. Reply Will Employee Business Expenses be deductible now? We were using Form 2106 I think. Reply Did the standard deduction for married filing jointly go from 12,000 to 24,000? Reply Hi Maria, The standard deduction went from $12,700 to $24,000 for married filing jointly. Thank you, Lisa Greene-Lewis Reply So its best to file separately if married? We rent our home. Of course they eliminated the personal exemption. So net benefit not that significant. $24K? I’m confused. “The standard deduction for married filing jointly rises to $13,000 for tax year 2018, up $300 from the prior year. For single taxpayers and married individuals filing separately, the standard deduction rises to $6,500 in 2018, up from $6,350 in 2017, and for heads of households, the standard deduction will be $9,550 for tax year 2018, up from $9,350 for tax year 2017.” https://www.irs.gov/newsroom/in-2018-some-tax-benefits-increase-slightly-due-to-inflation-adjustments-others-unchanged Turbo TaxLisa, Can a widow get any good deduction? My income decreased more than half. Isn’t the standard deduction for married filing jointly greater than 24000 if they are over 65? With an additional $1,300 for each taxpayer 65+ or blind. Lisa, there used to be a bump up in the standard deduction if you were over 65. Is there still a bump up in the new laws? Would it be easier or better to file married filing separately instead of filing jointly like we have always done will there still be a deduction for children in college Reply Hi Christina, Yes, you can still claim the American Opportunity tax credit for $2,500 per student for the first 4 years of college or the Life Time Learning Credit of $2,000 per return. You can also still claim the student loan interest deduction up to $2,500. TurboTax will guide you through education credits and deductions and give you the one you are eligible for based on your entries. Thank you, Lisa Greene-Lewis Reply Do each of these credits still phase out if earning exceeds a certain level of AGI? What is the income limit for claiming these education credits? $2500 credit, if tuition is paid by a grandparent? can the above credits apply if your AGI is above the limit? Does this apply for a high school senior who is going to college full-time (13 hours/semester)? If my spouse owes the IRS, and we decide to file jointly, how would our return be affected? Reply « Older Comments 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
Hi, I have a landscape business & include it in my personal married tax return. Is that a wise thing to do or should I file separately. How should labor and material be itemized for business return? Reply
Does the NEW and IMPROVED product solve the ‘start the product’ and ‘write’ and ‘update’ the return problems? (As your records confirm, this is a 6 month old problem!) Reply
I have been using TurboTax to prepare and submit my Federal and State taxes for YEARS. I have always prepared them using iMac desk top computer. I understand that TurboTax will cut off many of your users this year by limiting the TurboTax compatibility to specific Mac OS software that is only in the latest computers. What is the story? Will I be forced to use a different software package from other than TurboTax? Reply
So, even though we will no longer be able to reduce taxable income by exemptions, will there be a spot on the new return to show how many dependents we have? Aren’t some itemized deductions and credits only available to us if the individual is a dependent, i.e. Hope Credits for our kids or medical expenses for elderly relatives? Reply
“The new form consolidates the three versions of the 1040 into one simple form…and increase the number of tax schedules supporting Form 1040 by six additional forms.” Only the IRS would call this a “simplification”. Can’t wait to see how easy the instructions are. Reply
Our 2017 tax return showed $15,200 standard deduction and $8,100 exemptions making $23,300 as our total deductions. With the elimation of personal exemptions for 2018, we are actually getting only additional $700 in deductions. Is this for real? Reply
Can I still deduct my medical expenses beyond the 7.5 percent limit, if I start using the new 24,000 standard deduction for married couples. Reply
This year I have to add my student loans as income because the government paid them off. I am on disability and only work part-time. How is this going to effect me? Reply
I have always had to use Turbo Tax Premier because my income in mostly through investments. How will that be handled with the new tax laws, and will Premier still be needed to to cover investment income? Reply
What are the IRS and state rules on capital gains from selling an inherited house (never lived in by heirs)? A deed grating 1% remainder interest was made in 2006 for three beneficiaries. Upon the home owner’s death earlier this year (2018), the three heirs were granted ownership in the house effective on the day of death (this was automatic, we did not do anything). The house was recently sold, five months after the ownership changed. One heir is in NC where the house is, and two are out of state. How does each do taxes and has anything changed from before the new tax law? Reply
Willing we need to enter QCDs separately or deduct them ourselves from our 1099R taxable amount? Reply
Will the price of TurboTax be lowered, to reflect the more simplified tax forms? There will be fewer forms to deal with; I would think the price of your product should take that into consideration. Reply
What is the standard deduction for a dependent. My college age daughter has about 10,000 income from work and investments. Reply
I am paying off my mortgage July 2018 in a lump sum settlement. The difference in owed and settled is $11,000. What is the tax law on the forgiven amount? Reply
Removal of child exemption is mentioned here. Could you clarify? For those of us with children, is the new tax law removing the $4K exemption per child? Reply
Will the ‘It’s Deductible’ program still be available and up-to-date for use with the 2018 tax filing? Reply
If I am filing married jointly what is the deduction amount I have to meet for any of it to count ? For example mortgage interest, medical premiums…. Reply
So, the $24,000 applies to those who can’t reach that amount through deductions? What about medical deductions? What is the limit here or did that go away? What about deductions if you do part of your business in your home? Reply
Clergy persons (pastors, missionaries, etc) have been allowed a housing allowance in the past; will housing allowance still be allowed Reply
Hi, Does contribution to Oregon 529 college savings plan reduce owing state taxes in Oregon. What is the limit and suppose if my state tax is $10000 if I contribute to Oregon 529 let’s say $4000 what will be my final state tax owing. Thank you. Reply
Standard deduction for married filing jointly is $24,000. What about couples who are over 65 year in age. Is there added deduction and how much? Reply
We sold a property in February that we lived in for 5 years and rented for the past 11 years Before the tax law was changed affecting the capital gains rate, we were told by a tax consultant that we would have to pay about $30K in taxes, since we were not going to remain in the rental market. With the top capital tax rate around 15%, versus 30%, will our taxes drop to about $15K? Reply
will there be a penalty for having short term medical insurance or no medical insurance coverage? this is a @#$#@#!@ rip off for working people. Reply
I have been using Turbotax Deluxe since 2009. This past spring I received a note that this is the last year I can use Turbotax on my iMac because the OS is too old. I don’t plan to replace my Mac. Is there an online version comparable to Deluxe that is accessible via my iMac? Thx. Reply
How will the new tax law affect the child credit I just got a baby how much will be the credit for 2018 Reply
Is Head of Household still a filing status? (Such as for single with dependents). I read somewhere that it would have an $18,000 standard deduction. Reply
Is Head of Household still a filing status? I recall something about an $18,000 standard deduction for head of household. (Single with dependents) Reply
So does the new law do away with any deduction if you are paying all the expenses for a elderly parent. Reply
HI Stan, Not all of them, but it does get rid of the dependent exemption which was $4,050 in 2017. You may be able to get a new $500 credit for a non-child dependent. You may also be able to claim your parent’s medical expenses. TurboTax will be up to date with these new tax laws at tax-time and will guide you with simple 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. Our TurboTax Live CPAs and Enrolled Agents can even review, sign and file your return at tax time. Thank you, Lisa Greene-Lewis Reply
So the new tax code is doing away with the dependent exemptions of $4,050 in 2017, does that include you children or is that just for the qualifying relatives?
can you send me a template to use on how the new taxes affect me. I need to know. I do not care about a 1040 form. Other tax assistance companies and CPA’s have done this. Has turbo tax?
I have questions regarding past credits & deductions from this recent tax year that I didn’t Claim. How to go about refilling my taxes .
I am retired clergy. In past years I have been allowed to deduct housing expenses accrued during the tax year. Under the new tax laws will this still be an allowable deduction? Reply
ABOVE ANSWER BY STAN IS WRONG. PERSON ABOVE 65 YEARS OR OLDER CAN INCREASE STANDAR DEDUCTION BY $1300 PER PERSON. Reply
Hi Maria, The standard deduction went from $12,700 to $24,000 for married filing jointly. Thank you, Lisa Greene-Lewis Reply
$24K? I’m confused. “The standard deduction for married filing jointly rises to $13,000 for tax year 2018, up $300 from the prior year. For single taxpayers and married individuals filing separately, the standard deduction rises to $6,500 in 2018, up from $6,350 in 2017, and for heads of households, the standard deduction will be $9,550 for tax year 2018, up from $9,350 for tax year 2017.” https://www.irs.gov/newsroom/in-2018-some-tax-benefits-increase-slightly-due-to-inflation-adjustments-others-unchanged
Lisa, there used to be a bump up in the standard deduction if you were over 65. Is there still a bump up in the new laws?
Would it be easier or better to file married filing separately instead of filing jointly like we have always done
Hi Christina, Yes, you can still claim the American Opportunity tax credit for $2,500 per student for the first 4 years of college or the Life Time Learning Credit of $2,000 per return. You can also still claim the student loan interest deduction up to $2,500. TurboTax will guide you through education credits and deductions and give you the one you are eligible for based on your entries. Thank you, Lisa Greene-Lewis Reply