The tax changes generated by the Tax Cuts and Jobs Act (TCJA) and the resultant “simplified” Form 1040 was highly touted by the Trump administration and Republican-controlled Congress as a way to reduce complexity in complying with the tax laws.
As a result of the simplification provisions, it was decided that Form 1040-EZ, a shorter version of the individual income tax return was no longer necessary and the revised Form 1040 (to be used in the 2019 income tax filing season for 2018 reporting), was sufficient for all taxpayers.
Now, it appears that the revised and simplified Form 1040 did not meet the needs of all taxpayers, as had been thought. The Bipartisan Budget Act of 2018 directed the IRS to issue a simplified income tax return for senior citizens (age 65 or older) starting with the 2019 tax year. In response, the IRS recently released a draft of the new two-page form (Form1040-SR). The form is similar to the old Form 1040-EZ (which, again, is no longer used).
Unlike old Form 1040-EZ, the use of the new form is not restricted based on taxable income or the fact that income includes taxable income items such as Social Security benefits, qualified retirement plan distributions, or investment income. In addition, the new form may be used by seniors with dependents. Displayed at the bottom of page 1 of the form is a chart that lists standard deduction amounts by filing status.
Please contact Bob Grossman or Don Johnston at 412-338-9300 if you have questions or need additional information.
