In December 2017, the feds announced a new federal form 1040-SR for use by those age 65 or older. At the time, the form was described “as similar as possible to the Form 1040EZ.” The main difference between forms was those taxpayers using form 1040-SR would not be limited by taxable income or certain income types. In the summer of 2019, the IRS issued an early release draft of the new 2019 IRS Form 1040-SR, U.S. Tax Return for Seniors.
NOTE: Taxpayers should never file draft forms. Also, they should never rely on draft forms, instructions, and publications for filing. A tax professional may provide the necessary assistance.
Form 1040 is used by U.S. taxpayers to file an annual income tax return. For Tax Year 2018, taxpayers no longer had the option to use Form 1040-A or Form 1040-EZ. Many of these taxpayers instead used the redesigned Form 1040. The newly redesigned form 1040-SR is intended to replace forms 1040A and 1040EZ.
Form 1040-SR was not part of the Tax Cuts and Jobs Act (TCJA). Rather, it was part of the Bipartisan Budget Act of 2018 enacted by Congress the following year. By statute, the law is to be “as similar as practicable to Form 1040EZ” subject to a few exceptions, the most notable that it is “only for individuals who have attained age 65 as of the close of the taxable year.”
The proposed version of the 2019 form 1040-SR is only two pages in length for a good reason. The design is intended to be more senior-friendly with larger font sizes and better contrast of colors, so it is easier to read. For example, the IRS removed the “unusually-colored” shading from the form.
In 2016, the last year for which data is available, the IRS processed almost 150 million individual tax returns. Of these returns, approximately 15 million claimed the standard deduction, available only to seniors or the blind. Thus, about 10% of taxpayers may qualify to file form 1040-SR. In contrast, more than 25 million taxpayers filed form 1040-EZ before it was recently discontinued.
As mentioned, there are no income limits or restrictions on the kinds of income that may be reported on the 1040-SR. However, like the 1040-EZ, taxpayers who file form 1040-SR are required to take the standard deduction. The standard deduction amounts for the 2019 tax year are $12,200 for individuals, $18,350 for heads of household, and $24,400 for married couples filing jointly and surviving spouses.
For 2019, the additional standard deduction amount for seniors or the blind is $1,300. The additional standard deduction amount increases to $1,650 for unmarried taxpayers.
If you live in the New York or the Tri-State area and have any questions about any tax-related issues, call THE TAX EXPERTS at the Thorgood Law Firm www.thorgoodlaw.com. For a FREE consultation call 212-490-0704.
