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 » Great q&a Reply In one of the questions it was stated that the 2017 standard deduction was 12,700. In the Turbo Tax work sheet, it indicated that 2017 standard deduction was 15,200. What was the work sheet referring to? Reply I have been using Turbo Tax a long time. I am a senior citizen and concerned about paying extra taxes. I get Social Security and a state retirement, but would like to do a little part time job from time to time. I have had to stop doing any of these little extra jobs because even working a month in a year puts me in a different tax bracket. I can’t afford this! Will this new tax law help me in any way? Reply If spouse died in April can I file married filing single reasons step children want half? Reply Given that I’m married and retired, relatively few deductions (houses are paid off, etc), do I even need to list them if I’m going to default to the new standard deduction. My SALT is about $10k, but given it’s less than the new standard deduction, does it even need to the included in my tax forms. Also are Charitable deductions inside or out of the Standard deduction umbrella? Reply If you have a rental property and a couple vacation homes. What can I discount? Reply I am wondering how the new tax laws will effect my VA taxes. Reply Thanks for answers on the updated 2018 taxes. Reply Will The new tax law changes reduce or eliminate the existing personal exemption of $4,050 per person? Reply Hi Lisa, I had 19k in itemized deductions last year and filed married joint. I am approximating the same this year and it appears the standard deduction will now be higher and will be my choice for 2018. Will the standard deduction increase to 24k increase my refund? With itemized last year my federal refund was 4k and my filing is basically the same. Thanks, Dan Reply What are the changes to the Medical deduction? Reply We have just sold our house – can you explain about capital gains and how that works? Thanks. Reply Are charitable deductions still good? Reply Will alimony payments still be a deduction? Reply I am a historian and want to donate a collection of art, and collection of historical items to a museum. Will this be deductible as a gift or shall I just loan the items to the museum? Reply Am I correct in understanding that if I opt for the Standard Deduction, medical expenses, charitable donations, and property tax deductions will not be used? Reply Can I still write off expenses related to my job in construction? Previously I was able to write off tools, mileage, and union dues. Reply Can we deduct our medical costs and how will California taxes be affected as California has used the federal tax return to calculate state taxes. Reply Will truck drivers still be able to claim per diem under the D.OT. rates? And unreimbursed business expenses on an itemized return? Reply My husband and i pay for our health insurance and drug plan and we are hoping we will still be able to use the medical deduction on our taxes. Do you know yet if we will be allowed that deduction? Reply I’m worried how the new federal tax laws will affect my state tax liability. I currently itemize but may not be able to which my CPA said would cause me to have a higher state tax liability. No one mentions that part. Reply How’s a home equity loan going to work for deductions? Reply what about the Schedule C and self employment taxes & deductions? Reply What about people who own a duplex and rent out the other half has anything changed with that? I happen to make some home improvements on the renters side will i still be able to write that off or has that moved up or down on how much i can put into the place? Reply My wife is 68 and I am 67. I understand that we might be able to take personal deductions based upon our age. But, is there a maximum Adjusted Gross Income over which we no longer can take the deduction, and if there is, what is that maximum? Thank you. Reply I used my home equity line of credit for home improvements two or three years ago, but I am still paying on it. Will I be able to deduct the interest? Probably have lost receipts Reply If I am self-employed and file a Schedule C will I be using the new 1040 or is the old one still used for that purpose? Reply For the last five years, i filed my taxes by using turbo tax. My wife has an ira and 403 b retirement funds. Two years ago, she started to withdraw funds. But instead of doing from each type of funds, she used only Ira funds. Now we learned she had to do it by type of funds resulting in an extra withdraw of funds than necessary. Given that irs requires to withdraw funds by type, your software should provide that instructions. Reply Sold a second home property in July, tax year 2018 (long term). We pay quarterly estimated taxes — how can we estimate the tax due in September so we are spared any penalty when filing. Reply Will medical & dental expenses such as insurance premiums, high deductibles, co-pays, etc. still be deductible for 2018? Reply I tried the taxcaster using my estimated 2018 income to see effect in 2017 vs 2018 if new tax law helps me or not. While it says it does have me paying less federal taxes in 2018, it is not true because too many deductions you didn’t ask about that were permitted in 2017 that went away. E.g. have really big investment advisory costs and other deductions that were permissible in 2017 and not 2018. I know for a fact that I will be paying more. I do think you could have had added more topics around deductions in your model to be more accurate. But having said that for people with pretty simple returns it’s good. Reply Are there any changes to the foreign earned income exclusion? Reply Did the standard deduction go higher than $24, 000 for married couples over 65? Reply Any chance Intuit will make TurboTax available sooner this year to allow time to digest the changes? Reply Will people who get a 1099-Misc be able to use the new form? Reply Have not been as charitable this year as I have been in past years because of restrictions on the deductible amount. Also having extraordinary medical expenses this year which would of been over the 7% of income in past years. Is my thinking wrong in assuming that neither one will help me for deductions as they are now “incorporated” in the increased standard deduction? If not, what are the parameters so I can be more chartable and receive deductible benefits and also on the medical deductions. Reply What are changes for retirees on social security as in % taxable, Reply Will you still be able to deduct your gambling losses against your gambling winnings? Reply So upset with the new tax return in that the business expenses have been discontinued. That’s totally going to hurt us. Reply For some reason taxCaster will not fully install on my Samsung s7 edge. Once it seems to install , there is no icon, and my only choice is to uninstall. Is there tech support? Reply Can you still take medical deductions? Reply HOW soon will TurboTax for 2018 be available ???? Reply Hi Lisa, I’m a long-time TurboTax user, however 2018 tax year will introduce many new considerations and I wanted to see if TT has a place to address them, or not (in which case, I would hire a CPA). 1: My wife and I both work, We have the standard deduction of Prop Tax Interest. But I’m now collecting one of my pensions, and I have to pay tax on that amount. Is there a spot to address this issue? Also, I took the full sum of one of my Whole Life Insurance policies (about $18,000) and I have to pay tax on the principal, but I have no way of making that determination. Does TT address this situation? Thanks for all your help. Reply Are medical expenses still a deduction? Reply What about medical deductions for those of us over age 65? Reply Can you still take medical expenses deductions Reply I have a very small art business I have itemized for about 15 years. My sales are typically low anywhere from 50. to 1000. for the entire year. If all of my deductions add up to less than 12,000. do I still take the standard deduction? Also, can we still itemize medical deductions for office visits, drugs, glasses and medical and long term care insurance? Reply Will there still be the increased standard deduction for people over 65? If so, what will it be? Reply It was mentioned that rental property taxes cannot be deducted? Can you still deduct it as a business rental property expense? Reply Hi Lisa, I was under the impression that you could no longer deduct home equity line of credit interest. But this email from TurboTax says that you can. Would you please clarify. Thank you. Gary and Donna 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? 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In one of the questions it was stated that the 2017 standard deduction was 12,700. In the Turbo Tax work sheet, it indicated that 2017 standard deduction was 15,200. What was the work sheet referring to? Reply
I have been using Turbo Tax a long time. I am a senior citizen and concerned about paying extra taxes. I get Social Security and a state retirement, but would like to do a little part time job from time to time. I have had to stop doing any of these little extra jobs because even working a month in a year puts me in a different tax bracket. I can’t afford this! Will this new tax law help me in any way? Reply
Given that I’m married and retired, relatively few deductions (houses are paid off, etc), do I even need to list them if I’m going to default to the new standard deduction. My SALT is about $10k, but given it’s less than the new standard deduction, does it even need to the included in my tax forms. Also are Charitable deductions inside or out of the Standard deduction umbrella? Reply
Will The new tax law changes reduce or eliminate the existing personal exemption of $4,050 per person? Reply
Hi Lisa, I had 19k in itemized deductions last year and filed married joint. I am approximating the same this year and it appears the standard deduction will now be higher and will be my choice for 2018. Will the standard deduction increase to 24k increase my refund? With itemized last year my federal refund was 4k and my filing is basically the same. Thanks, Dan Reply
I am a historian and want to donate a collection of art, and collection of historical items to a museum. Will this be deductible as a gift or shall I just loan the items to the museum? Reply
Am I correct in understanding that if I opt for the Standard Deduction, medical expenses, charitable donations, and property tax deductions will not be used? Reply
Can I still write off expenses related to my job in construction? Previously I was able to write off tools, mileage, and union dues. Reply
Can we deduct our medical costs and how will California taxes be affected as California has used the federal tax return to calculate state taxes. Reply
Will truck drivers still be able to claim per diem under the D.OT. rates? And unreimbursed business expenses on an itemized return? Reply
My husband and i pay for our health insurance and drug plan and we are hoping we will still be able to use the medical deduction on our taxes. Do you know yet if we will be allowed that deduction? Reply
I’m worried how the new federal tax laws will affect my state tax liability. I currently itemize but may not be able to which my CPA said would cause me to have a higher state tax liability. No one mentions that part. Reply
What about people who own a duplex and rent out the other half has anything changed with that? I happen to make some home improvements on the renters side will i still be able to write that off or has that moved up or down on how much i can put into the place? Reply
My wife is 68 and I am 67. I understand that we might be able to take personal deductions based upon our age. But, is there a maximum Adjusted Gross Income over which we no longer can take the deduction, and if there is, what is that maximum? Thank you. Reply
I used my home equity line of credit for home improvements two or three years ago, but I am still paying on it. Will I be able to deduct the interest? Probably have lost receipts Reply
If I am self-employed and file a Schedule C will I be using the new 1040 or is the old one still used for that purpose? Reply
For the last five years, i filed my taxes by using turbo tax. My wife has an ira and 403 b retirement funds. Two years ago, she started to withdraw funds. But instead of doing from each type of funds, she used only Ira funds. Now we learned she had to do it by type of funds resulting in an extra withdraw of funds than necessary. Given that irs requires to withdraw funds by type, your software should provide that instructions. Reply
Sold a second home property in July, tax year 2018 (long term). We pay quarterly estimated taxes — how can we estimate the tax due in September so we are spared any penalty when filing. Reply
Will medical & dental expenses such as insurance premiums, high deductibles, co-pays, etc. still be deductible for 2018? Reply
I tried the taxcaster using my estimated 2018 income to see effect in 2017 vs 2018 if new tax law helps me or not. While it says it does have me paying less federal taxes in 2018, it is not true because too many deductions you didn’t ask about that were permitted in 2017 that went away. E.g. have really big investment advisory costs and other deductions that were permissible in 2017 and not 2018. I know for a fact that I will be paying more. I do think you could have had added more topics around deductions in your model to be more accurate. But having said that for people with pretty simple returns it’s good. Reply
Any chance Intuit will make TurboTax available sooner this year to allow time to digest the changes? Reply
Have not been as charitable this year as I have been in past years because of restrictions on the deductible amount. Also having extraordinary medical expenses this year which would of been over the 7% of income in past years. Is my thinking wrong in assuming that neither one will help me for deductions as they are now “incorporated” in the increased standard deduction? If not, what are the parameters so I can be more chartable and receive deductible benefits and also on the medical deductions. Reply
So upset with the new tax return in that the business expenses have been discontinued. That’s totally going to hurt us. Reply
For some reason taxCaster will not fully install on my Samsung s7 edge. Once it seems to install , there is no icon, and my only choice is to uninstall. Is there tech support? Reply
Hi Lisa, I’m a long-time TurboTax user, however 2018 tax year will introduce many new considerations and I wanted to see if TT has a place to address them, or not (in which case, I would hire a CPA). 1: My wife and I both work, We have the standard deduction of Prop Tax Interest. But I’m now collecting one of my pensions, and I have to pay tax on that amount. Is there a spot to address this issue? Also, I took the full sum of one of my Whole Life Insurance policies (about $18,000) and I have to pay tax on the principal, but I have no way of making that determination. Does TT address this situation? Thanks for all your help. Reply
I have a very small art business I have itemized for about 15 years. My sales are typically low anywhere from 50. to 1000. for the entire year. If all of my deductions add up to less than 12,000. do I still take the standard deduction? Also, can we still itemize medical deductions for office visits, drugs, glasses and medical and long term care insurance? Reply
Will there still be the increased standard deduction for people over 65? If so, what will it be? Reply
It was mentioned that rental property taxes cannot be deducted? Can you still deduct it as a business rental property expense? Reply
Hi Lisa, I was under the impression that you could no longer deduct home equity line of credit interest. But this email from TurboTax says that you can. Would you please clarify. Thank you. Gary and Donna Reply