Hello, this is Rick Homeric, a certified financial planner. Today, I want to discuss the new 1040 tax form from the IRS. Although it may not be the most exciting topic, it is important to be informed because the tax code changed in 2018, and the IRS recently released a brand new form. First, it's essential to note that the form is still in draft form. While they have released this particular form, it is not to be used yet for filing taxes. There is still plenty of time before the tax season begins. Therefore, do not use this form at this point because it is the initial draft. Now, let's talk about the size of the form. The IRS aimed to make it more compact, almost like a postcard. It is just half a sheet of paper, with Side 1 and Side 2. However, the smaller size can be slightly misleading. While the number of lines has been reduced from 79 to 23, which is an accomplishment, there are still six separate schedules that you may need to fill out. Unfortunately, these schedules are not included on this form. So, even though there are fewer lines, the complexity remains. Notably, one significant change is the absence of exemptions on this form. In the past, you could exempt around $4,050 per person. However, that option is no longer available. This is a downside. On the upside, the standard deduction still exists and has been increased. A single person can now deduct $12,000, while married individuals filing jointly can deduct $24,000 from their taxable income. This increase is substantial, almost double what it was previously. So, that's definitely good news. If you have any questions regarding taxes, retirement, financial planning, or investments, feel free to give me a call anytime. Additionally, I will be teaching...
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Video instructions and help with filling out and completing Where Form 1120 C Miscellaneous
