How to Deal With Your Form 1040 in 2019

For all employees who file theirW-2and self-employed individuals who file1099-MISCforms and other taxpayers, there was a news that hit at the end of 2018: the rules for completing the ubiquitous 1040 income tax return have undergone some changes.

What’s New in 1040 Form?

In comparison to the previous habitual version, the new blank grew smaller and now contains 23 lines instead of 73 ones. However, the 50 lines weren’t removed completely but redesigned into six new schedules. As the IRS explains, the used method is called a “building block”. The taxpayers complete a simple version of the tax return and then use supplementary forms according to their needs.

Forms 1040A and 1040EZ are no longer valid. If you see some references to these blanks in other sources, for example, in FormW-2issued in up to the year 2018, keep in mind that this information is outdated.

How to Complete the New Form 1040?

The new blank consists of two pages. On the first page, the taxpayer provides their personal information like name, address and SSN number. The signatures of the taxpayer, and their spouse if applicable. If the tax return was completed and sent by the hired specialist, their signature should be presented there as well.

The second page was “decluttered” and now consists of four key sections:

1. Articles of income comprising the total income where you report all your wages, salaries, tips, dividends, interests. pensions etc.

2. Itemized deductions which include taxes and deductions.

3. Refund that you can get if you overpaid.

4. The amount you owe in case if you underpaid.

Note that the first section requires you to attach your Form W-2as well as W-2G and 1099-R if applicable.

After completing the main part, which is the only you need provided that your income is limited by the only job and set forth in your W-2 https://fillable-form-w2.pdffiller.com/, you may have to fill out respective supplementary schedules in accordance with your personal situation. Information that used to be in a single blank, now divided into six sections: for those who need additional income adjustment; for those who report additional taxes; for those who claim for the non-refundable tax credit; for those who report other taxes; for those who want to get an additional refund on tax credit; for those who present the third party with a foreign address. The CBCNews provides more detailed information on this issue.

In other cases, you still have the old schedules. For example, In this video, you can get some tips on how to fill out your 1040 with the child tax credit.

https://www.youtube.com/watch?v=xwUoUKiuwks

How1099-MISCFilers Report Their Income?

Self-employed persons who furnish Form1099-MISC https://1099-misc-form.pdffiller.com/ to the IRS, have to file their income tax return as well. Apart from the common 1040 Form, they need the following schedules:

1. Schedule C to report the business loss and income. When filing it, the self-employed individual may qualify for the Earned Income Tax Credit (EITC) if they’re eligible.

2. Schedule F for those who are engaged in the farming business.

3. Schedule E for partners.

4. Schedule SE is used to make the estimated tax calculation.