Normally our 'Tax Tuesday' feature is devoted to 'Sales Tax Tuesday,' but not this week. As we are quickly sliding toward the end of the year, and that mean's the start of 'tax season' we thought we would bring you a special edition of 'Tax Tuesday.' So we simply ask, "are you ready to file the new IRS 1040 form?"
Did you know that what we have known as the Form1040, 1040-A and 1040-EZ are being replaced by a new much shorter Form 1040 this year and that the -A and -EZ forms will no longer be used? "And even though it's a 'little bigger' than a 3" X 5" post card, it's substantially smaller that prior 1040 forms."
Source: Internal Revenue Service (Draft form DO NOT USE.)
IRS 2018 Form 1040 Draft - page 1
Taxpayers will make use of the new Form 1040 along with as many as six additional tax schedules based upon their own unique filing requirements.
Source: Internal Revenue Service (Draft Form - DO NOT USE).
IRS 2018 Form 1040 Draft Page 2
As you can see, the 'meat and potatoes' side (Page 2) of the form is great simplified. How much did you make, allowed deductions, taxable income, how much do you owe, how much was withheld (or otherwise paid in) and 'send-the-balance' or 'get a refund.' I suspect it will really be more complicated than it seems, but at first look it appears simplistic.
Of course the actual size of the new 1040 really will hardly matter because chances are most people (more than ever, I suspect) will be using a tax filing website to file the new form electronically. As a result, they must validate their 2018 Form 1040 using their 2017 Adjusted Gross Income (AGI) amount as it appeared on Line 37 of their 2017 Form 1040, or Line 21 of their 2017 Form 2040-A, or Line 4of their 2017 1040-EZ. Alternately, they can verify filing validity using their Self-select PIN from their 2017 filing. You can visit the official IRS website titled Validating Your Electronically Filed Tax Return for more information regarding electronic return validation requirements.
Obviously if you are going to need your AGI amount from your 2017 tax return you had better make certain you have a copy of the return handy, of course that’s not the only reason to maintain a copy. While a lot of people are trying to conserve trees by reducing unnecessary printing, the Internal Revenue Service still insists that you keep a copy of your tax returns and all related records for at least three (3) years, and preferably seven (7) years (especially if you have a complicated filing). Heck, they may want to wait till year five to audit you.
If you are using tax software, or have a paid tax preparer, you can normally obtain a PDF copy of your filed return. If it was filed electronically the electronic filing record is evidence that you authorized and verified the return (which is to the IRS, the same as signing a paper return). If it was prepared on paper and mailed, then you should always make a copy of the ‘signature page(s)’ to keep along with your PDF of the filed return if you don’t want a complete paper copy. Of course, most paid preparers generate your paper copy automatically along with their Invoice, so if you are trying to 'conserve the trees' then make certain to tell them to give you a PDF rather than a paper copy when you start the process.
If you happened not to keep a copy you can request a free ‘summary transcript’ of your tax return from the Internal Revenue Service simply by completing a request online at the IRS Welcome to Get Transcript webpage. With the correct information you can view, print or download your transcript from that webpage. You can also complete a request to have a transcript mailed to you. If you know you need a transcript then now is the time to log-in and request one, don't wait till you are trying to prepare your tax return on-line because you may experience delays even when attempting to obtain a transcript over the internet.
If you happen to need a complete copy of your tax return, rather than just a transcript then you will need to complete IRS Form 4506, begin the process by reading the information at the IRS About Form 4506 webpage. You need to be aware that while ‘summary transcripts’ are free (for any of the last three tax years), copies of actual tax returns are provided at a cost of fifty-dollars ($50) per tax return [including all attachments as originally submitted to the IRS including Form(s) W-2, etc.]. Since there is always a proliferation of these requests leading up to the April tax return filing deadline, we suggest that you get your request in now to avoid the backlog and delays associated with filing during that rush.
So, I ask you again, “are you ready to file the new IRS 1040 form?” Even though Santa hasn’t even visited your house yet, you had better be getting all your ducks in a row for one of the most active tax filing seasons ever. You can count on the fact with this many changes, and form miniaturization, and last-minute updates that everything will NOT go off without a hitch or two. Still the same, the tax man will be expecting your 1040 Form, and your tax payment on time no matter what.
Be sure to join us next week as Murph is back in his Sales Tax RV continuing his trek having departed Goodland, Kansas on his way to Burlington, Colorado. You won't want to miss seeing which way he heads in Colorado, or where he makes stops for fun, food or sales taxes along the way.