Draft of New Tax Return for Seniors

Pursuant to the Bipartisan Budget Act in 2018, the IRS has created a new tax form for those age 65 and older at https://www.irs.gov/pub/irs-dft/f1040s–dft.pdf. The form, which can be used for the 2019 income tax return filed during the 2020 tax filing season, is a two-page form that uses larger fonts and no shading to make it more readable by those with declining vision. Form 1040-SR can be used to report income from various sources (it incorporates Schedule 1 for income and adjustments to income items used for Form 1040). And if a senior is an owner of a pass-through entity, the qualified business income (QBI) deduction can be claimed to the extent allowed. A senior filing the new form can take the standard deduction (there’s a chart of standard deduction amounts on page 1) or itemize, as well as claim various tax credits.

Seniors are not required to file this form. They can choose to use the regular Form 1040.

Source : JK Lasser Posts >> Tax News