Form 1040 Redesign Reminder

The IRS has redesigned the 2018 Form 1040. The Form 1040 will only include the most commonly used income, deductions, credits and payments. All other line items that were on the previous Form 1040 will now be included on six new schedules.

With this redesign the Form 1040A and 1040EZ have been eliminated.

The 2018 Form 1040 has been streamlined to only include the five most common types of income, federal withholding, EITC, Additional Child Tax Credit and the Education Credit. All other types of income, adjustments to income, nonrefundable, refundable credits, other payments and other taxes that existed on the 2017 Form 1040 have been moved to one of six new schedules:

• Schedule 1 (Additional Income and Adjustments to Income)

• Schedule 2 (Tax)

• Schedule 3 (Non-refundable Credits)

• Schedule 4 (Other Taxes)

• Schedule 5 (Other Payments and Refundable Credits)

• Schedule 6 (Foreign Address and Third Party Designee)

The 2018 Form 1040 also has the following changes that are a result of the Tax Cuts and Jobs Act:

• Removal of exemption amount boxes and the total exemptions line.

• Addition of check box for the new credit for other dependents for each dependent.

• New line 9 for the new qualified business income deduction (20% deduction for pass-through business income – Sec 199A).

Visit the CrossLink Tax Resource Center today to learn more.