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 » Thanks TurboTax…you’re way ahead as usual. Been using you for years and you haven’t disappointed yet…Sheila Reply Thanks for the kind words, Sheila! Reply Standard deduction for joint filers both over 65. Do we still get an additional amount or is 24k the amount for all? Reply You will each get an additional amount ($1,300 each) for being over 65. Reply My husband and I are over 80. We were able to double our personal exemptions in 2017. Is there any provision to cover this loss? Reply IRS Code. My 401K plan coded my withdrawal as a Code # 1, since i’m using an exemption 72T can I change this when I file my taxes or should I call them and have them change the code? Reply I am 69 1/2. Am I still only permitted one distribution per year from my IRA and 401K? Reply The simple answer is no. You were never limited to only one distribution from your IRA/401(k). You must be thinking about roll-overs, some of which are restricted to one per year. Reply Can I as a company truck driver still deduct my meals and expenses ? Doug Grubb ca. Reply I have used turbotax happily and successfully for the past 10 years…. After receiving an email from turbotax, I ordered my 2018 Program on line yesterday using turbotax “pay when you file option”… This was a big mistake on my part.!!! PLEASE CANCEL THE ORDER… I will reorder later this year… The reason for the cancellation is that I filed an extenton for my 2016 taxes in april 2017 and will not file until sep 2017.. when I started to answer all the questions that the 2018 program asked they stated I could not use my email address because someone else also has an account with the same name … I just want to go back where I was 3 days ago…. Right now I can”t open my 2017 program and I can’t log in to my account…. I got myself into this but Please help me get out of it… Looking for a prompt reply…Thanks for your help. .. Ron AZ Reply Are medical expenses deductible? Reply Hi Walter, Yes as long as you itemize your deductions and your medical expenses are over 7.5% of your adjusted gross income. Under the new tax law your deductions like for home mortgage interest, property taxes, etc need to exceed the new standard deduction of $12,000 if you are single, $24,000 married filing jointly in order to itemize. TurboTax will be up to date with the new tax law and will give you the tax deductions and credits your eligible for based on your answers. If you have a question 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. Best, Lisa Greene-Lewis Reply Hi. Can a second residence be in BC Canada? We live in California, thanks, Bob Will 2018 social security income be taxed the same as previous years. Reply Yes. Reply Does this mean that I will no longer be able to deduct medical expenses and job related expenses? Reply Hi Jean, You can still deduct medical expenses as long as you can itemize and your medical expenses are over 7.5% of your adjusted gross income. Unreimbursed job related expenses if your are a W-2 employee are no longer deductible under the new law. TurboTax will be up to date with the new tax reform law and will give you the tax deductions and credits you’re eligible for based on your answers. If you have questions you can also connect live via one-way video to a TurboTax Live CPA or Enrolled Agent to get your questions answered at tax time. Thank you, Lisa Greene-Lewis Reply How much for each dependent you carry on your tax. Reply Hi, The dependent exemption that was $4,050 for each dependent is no longer deductible under the new law, but there are other deductions and credits you can take for your dependent like, the Child Tax Credit that increased to $2,000 per dependent under 17, the Earned Income Tax Credit which can be up to $6,431 with 3 or more kids, and the Child and Dependent Care Credit. Thank you, Lisa Greene-Lewis Reply what will the senior standard deduction be for 2018? Reply By “senior” do you mean 65+? In that case add $1,300 per senior to the standard deduction. Reply Are Financial Planning/Brokerage fees still deductable for 2017/2018 Reply Hi John, The new law suspends all miscellaneous itemized deductions, which includes financial planning and brokerage fees beginning with your 2018 taxes. Thank you, Lisa Greene-Lewis Reply Hello so can we claim our child as a dependent or no? Reply Hi Lea, You can no longer take the dependent exemption of $4,050 per dependent, but you can take other deductions and credits for your dependent like the Child Tax Credit that increased to $2,000, Child and Dependent Care Credit worth up to $1,050 with one child and $2,100 with 2 or more kids, and the Earned Income Tax Credit worth up to $6,431 with 3 or more kids. TurboTax will be up to date with the latest tax laws and will give you the tax deductions and credits you are eligible for. 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. Thank you, Lisa Greene-Lewis Reply What about lottery winnings like 2,000 but I have that amount in losing tickets Is there any change to housing allowances for clergy? I am retired. Has the maximum amount earned before SS pension becomes taxable changed? For 2017, that amount was 25000. Thank you. Reply Will there still be deductions for medical expenses Reply Yes, for those qualified expenses that exceed 7.5% of your AGI. Reply I file single and Itemized, my deductions with property taxes are about 28k, will still be able to itemized and take deductions or what woukd be the limmits using the same numbers? Reply my itemized deductions consist of property taxes, realized lose, donations, medical situations. Reply For 401K withdrawals, is the exemption for the 10% penalty still in effect for Retired Public Safety Officers who retired on or after attaining the age of 50 on distributions before reaching 59.5 yrs old? Reply would i be able to deduct charitable payments anymore? Reply Yes, if you itemize. Reply How will solar credit work on the new 1040? Reply What will be the amount of the standard deduction for individuals/married filing jointly for those over 65 years of age? Reply An additional $1,300 per senior. Reply Has anything been done for the penalty of taxing Social Security Income? Last year if a person earned over 32K, their Social Security was taxable at the current tax rate for their income. The amount of tax will be 85% of the Social Security Income. I was able to find out this lase year. 85% of my Social Security was taxed at 25% because I have some earnings during the year that pushed my total income up. My example is as follows: If a person earn 31.5K including Social Security would not tax my Social Security at all. However if I earned just $1,000 more, I would be paying taxes on 85% of my total security at whatever tax rate I will fall in. That could be a huge penalty. It should be starting at $35K and slowly increase up to a total of $120,000 before the maximum 85% is taken. I havealready written my Congressman about this and have not yet heard a reply. Reply Are there Energy Tax Credits for 2018? Reply Can you deduct medical bills incurred for plastic surgery? Reply My brother died and left me a little over $8K and I wondered if I have to pay taxes on that? Reply I have a specific situation involving drawing social security while working as a W2 employee in the year I turn 66. Is there a CPA I can speak to about this in regards to 2018 tax planning? Reply in 2018 is Social Security income fully taxable? Reply Can I deduct medical expenses and out of pocket premiums in 2018 ? Reply What is the status of preparing Schedule C for individuals. Is there any documentation available for understanding the what is changing regarding schedule C? Reply Why haven’t you answered my questions? I have been a TT users for over ten years, but this lack of response bothers me. Reply If I sell my vacation condo next year will I have to pay capital gains taxes? Reply How will EIC and child tax credit work now? Reply How about foreign income taxes? Up to now, you were able to either take a credit or as a deduction on Sched A on the line for other taxes. Does it fall under the $10000 limit? Reply Will home office and mileage deductions go away if they are unreimbursed employee expenses? Reply YES Valerie Chan, all 2% floor deductions at the bottom of schedule (A) are gone. Reply I have a general question. doing my taxes for last year and when I loaded the app from disk, it did not import my prior year data. Having a schedule C, it is important that everything load. Can you coach me through it with easy instruction? or point me in the right direction, either phone number or email to get help quickly? Reply I work for a railroad and travel several times monthly out of my home terminal and state. Sometimes I am away from home for more than 2 or 3 days. One question is will there be any perdieum or a different tax write off. Reply I have a Schedule K-1, will that be affected? Reply I need to take a withdrawl from my Roth IRA and I am under 59 1/2 and will be filing married but filing separately. I want to take out taxes upfront. How do I calculate my taxes Reply In previous years the electronic version of turbotax did not include the “QCD” for qualified charitable distributions from IRAs and 401Ks, though it was included in the print outs I got on my computer. I talked to the IRS, and they told me that omission is common. Has that omission been corrected. It caused me a huge headache and caused me to not file electronically in recent years. Reply Has employee business expenses been eliminated? From what i see people over 65 will be hurt by these new laws. The new standard deduction amount and elimination of the dependent deduction is less than before. Reply Are there any changes to lines 25 through 35 in Form 1040 for 2018? Reply Would like to know how TT deals with a rental property Reply Will there be any changes to lines 25 through 35 on Form 1040 for 2018? Reply What is standard deduction for SENIORS filing jointly? Reply As you stated above: “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.” “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” Lisa, please clarify your comment above regarding the SALT not being for rental property, specifically in CA. Are you saying there is no limit and SALT’s are fully deductible for rental properties and the $10,000 limitation only applies to principal and second residences? Thank you, David L Reply How will this affect those of us that have Stocks and Dividends? Reply How does the new tax law affect single parents with one child will they have a higher tax than before? Reply I have a question regarding the new standard deduction. In years past there was an additional amount given to those over 65. Has that been eliminated and the new amount is 24K regardless of age? Reply Hi Bob, The amount for 65 and older, blind, or disabled has not been eliminated. If you are 65 or over, blind, or disabled you get an additional $1,600 added on to the standard deduction if you are single or head of household and $1,300 per person added to the standard deduction if you are married. With TurboTax you don’t need to know these calculations. TurboTax will figure it out for you based on the information you enter. Thank you, Lisa Greene-Lewis Reply What is the standard deduction for Head of Household? What if you file head of household how does that work now? Reply Will I be able to deduct alimony payment under the new tax law? Reply Hi John, If you were already paying alimony prior to 2018, then you are grandfathered in and you can still deduct alimony. If you begin paying alimony in 2018 you will not be able to deduct it since the new tax reform law eliminates the deduction beginning in tax year 2018. Thank you, Lisa Greene-Lewis Reply Are there any other changes to lines 25 through 35 on Form 1040 beside the elimination of the alimony deduction? Thanks. Alimony is granted prior to 2018. What happens if you are taken back to court & it is increased? Then what would happen? Hi Lisa, when can I expect a reply regarding he questions I asked about folks over 65 and blind? It is the next down set of questions “awaiting moderation.” What does that mean? You don’t know the answers yet? Would appreciate information. Thanks. My son lives with us. He turns 17 in October 2018. He does not work. He is in high school full time. How much is the child tax credit for him? Thank you. Reply « Older Comments Newer Comments » Leave a ReplyCancel reply Browse Related Articles Crypto Understanding Crypto and Capital Gains Work 7 Things You Need to Know About the New Business Report… Work Using Form 8829 to Write-Off Business Use of Your Home Tax Tips Roth 403(b) vs. Roth IRA: Which Should You Invest In? Life Interest Rates, Inflation, and Your Taxes Investments Essential Tax Tips for Maximizing Investment Gains Uncategorized TurboTax is Partnering with Saweetie to Elevate Hoop Dr… Business Small Business Owners: Optimize Your Taxes with a Mid-Y… Small Business The Benefits of Employing Your Children and the Tax Bre… Income and Investments Are Olympics Winnings Taxed?
Thanks TurboTax…you’re way ahead as usual. Been using you for years and you haven’t disappointed yet…Sheila Reply
Standard deduction for joint filers both over 65. Do we still get an additional amount or is 24k the amount for all? Reply
My husband and I are over 80. We were able to double our personal exemptions in 2017. Is there any provision to cover this loss? Reply
IRS Code. My 401K plan coded my withdrawal as a Code # 1, since i’m using an exemption 72T can I change this when I file my taxes or should I call them and have them change the code? Reply
The simple answer is no. You were never limited to only one distribution from your IRA/401(k). You must be thinking about roll-overs, some of which are restricted to one per year. Reply
I have used turbotax happily and successfully for the past 10 years…. After receiving an email from turbotax, I ordered my 2018 Program on line yesterday using turbotax “pay when you file option”… This was a big mistake on my part.!!! PLEASE CANCEL THE ORDER… I will reorder later this year… The reason for the cancellation is that I filed an extenton for my 2016 taxes in april 2017 and will not file until sep 2017.. when I started to answer all the questions that the 2018 program asked they stated I could not use my email address because someone else also has an account with the same name … I just want to go back where I was 3 days ago…. Right now I can”t open my 2017 program and I can’t log in to my account…. I got myself into this but Please help me get out of it… Looking for a prompt reply…Thanks for your help. .. Ron AZ Reply
Hi Walter, Yes as long as you itemize your deductions and your medical expenses are over 7.5% of your adjusted gross income. Under the new tax law your deductions like for home mortgage interest, property taxes, etc need to exceed the new standard deduction of $12,000 if you are single, $24,000 married filing jointly in order to itemize. TurboTax will be up to date with the new tax law and will give you the tax deductions and credits your eligible for based on your answers. If you have a question 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. Best, Lisa Greene-Lewis Reply
Does this mean that I will no longer be able to deduct medical expenses and job related expenses? Reply
Hi Jean, You can still deduct medical expenses as long as you can itemize and your medical expenses are over 7.5% of your adjusted gross income. Unreimbursed job related expenses if your are a W-2 employee are no longer deductible under the new law. TurboTax will be up to date with the new tax reform law and will give you the tax deductions and credits you’re eligible for based on your answers. If you have questions you can also connect live via one-way video to a TurboTax Live CPA or Enrolled Agent to get your questions answered at tax time. Thank you, Lisa Greene-Lewis Reply
Hi, The dependent exemption that was $4,050 for each dependent is no longer deductible under the new law, but there are other deductions and credits you can take for your dependent like, the Child Tax Credit that increased to $2,000 per dependent under 17, the Earned Income Tax Credit which can be up to $6,431 with 3 or more kids, and the Child and Dependent Care Credit. Thank you, Lisa Greene-Lewis Reply
Hi John, The new law suspends all miscellaneous itemized deductions, which includes financial planning and brokerage fees beginning with your 2018 taxes. Thank you, Lisa Greene-Lewis Reply
Hi Lea, You can no longer take the dependent exemption of $4,050 per dependent, but you can take other deductions and credits for your dependent like the Child Tax Credit that increased to $2,000, Child and Dependent Care Credit worth up to $1,050 with one child and $2,100 with 2 or more kids, and the Earned Income Tax Credit worth up to $6,431 with 3 or more kids. TurboTax will be up to date with the latest tax laws and will give you the tax deductions and credits you are eligible for. 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. Thank you, Lisa Greene-Lewis Reply
I am retired. Has the maximum amount earned before SS pension becomes taxable changed? For 2017, that amount was 25000. Thank you. Reply
I file single and Itemized, my deductions with property taxes are about 28k, will still be able to itemized and take deductions or what woukd be the limmits using the same numbers? Reply
my itemized deductions consist of property taxes, realized lose, donations, medical situations. Reply
For 401K withdrawals, is the exemption for the 10% penalty still in effect for Retired Public Safety Officers who retired on or after attaining the age of 50 on distributions before reaching 59.5 yrs old? Reply
What will be the amount of the standard deduction for individuals/married filing jointly for those over 65 years of age? Reply
Has anything been done for the penalty of taxing Social Security Income? Last year if a person earned over 32K, their Social Security was taxable at the current tax rate for their income. The amount of tax will be 85% of the Social Security Income. I was able to find out this lase year. 85% of my Social Security was taxed at 25% because I have some earnings during the year that pushed my total income up. My example is as follows: If a person earn 31.5K including Social Security would not tax my Social Security at all. However if I earned just $1,000 more, I would be paying taxes on 85% of my total security at whatever tax rate I will fall in. That could be a huge penalty. It should be starting at $35K and slowly increase up to a total of $120,000 before the maximum 85% is taken. I havealready written my Congressman about this and have not yet heard a reply. Reply
I have a specific situation involving drawing social security while working as a W2 employee in the year I turn 66. Is there a CPA I can speak to about this in regards to 2018 tax planning? Reply
What is the status of preparing Schedule C for individuals. Is there any documentation available for understanding the what is changing regarding schedule C? Reply
Why haven’t you answered my questions? I have been a TT users for over ten years, but this lack of response bothers me. Reply
How about foreign income taxes? Up to now, you were able to either take a credit or as a deduction on Sched A on the line for other taxes. Does it fall under the $10000 limit? Reply
I have a general question. doing my taxes for last year and when I loaded the app from disk, it did not import my prior year data. Having a schedule C, it is important that everything load. Can you coach me through it with easy instruction? or point me in the right direction, either phone number or email to get help quickly? Reply
I work for a railroad and travel several times monthly out of my home terminal and state. Sometimes I am away from home for more than 2 or 3 days. One question is will there be any perdieum or a different tax write off. Reply
I need to take a withdrawl from my Roth IRA and I am under 59 1/2 and will be filing married but filing separately. I want to take out taxes upfront. How do I calculate my taxes Reply
In previous years the electronic version of turbotax did not include the “QCD” for qualified charitable distributions from IRAs and 401Ks, though it was included in the print outs I got on my computer. I talked to the IRS, and they told me that omission is common. Has that omission been corrected. It caused me a huge headache and caused me to not file electronically in recent years. Reply
Has employee business expenses been eliminated? From what i see people over 65 will be hurt by these new laws. The new standard deduction amount and elimination of the dependent deduction is less than before. Reply
As you stated above: “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.” “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” Lisa, please clarify your comment above regarding the SALT not being for rental property, specifically in CA. Are you saying there is no limit and SALT’s are fully deductible for rental properties and the $10,000 limitation only applies to principal and second residences? Thank you, David L Reply
How does the new tax law affect single parents with one child will they have a higher tax than before? Reply
I have a question regarding the new standard deduction. In years past there was an additional amount given to those over 65. Has that been eliminated and the new amount is 24K regardless of age? Reply
Hi Bob, The amount for 65 and older, blind, or disabled has not been eliminated. If you are 65 or over, blind, or disabled you get an additional $1,600 added on to the standard deduction if you are single or head of household and $1,300 per person added to the standard deduction if you are married. With TurboTax you don’t need to know these calculations. TurboTax will figure it out for you based on the information you enter. Thank you, Lisa Greene-Lewis Reply
Hi John, If you were already paying alimony prior to 2018, then you are grandfathered in and you can still deduct alimony. If you begin paying alimony in 2018 you will not be able to deduct it since the new tax reform law eliminates the deduction beginning in tax year 2018. Thank you, Lisa Greene-Lewis Reply
Are there any other changes to lines 25 through 35 on Form 1040 beside the elimination of the alimony deduction? Thanks.
Alimony is granted prior to 2018. What happens if you are taken back to court & it is increased? Then what would happen?
Hi Lisa, when can I expect a reply regarding he questions I asked about folks over 65 and blind? It is the next down set of questions “awaiting moderation.” What does that mean? You don’t know the answers yet? Would appreciate information. Thanks.
My son lives with us. He turns 17 in October 2018. He does not work. He is in high school full time. How much is the child tax credit for him? Thank you. Reply