The season of filing tax returns in the United States was officially launched this week. IRS Internal Revenue Service (IRS) unveiled the new form 1040, reports Money Talks News.
Tax return on form 1040 for the year 2019 must be submitted before April 15. But she looks a bit different than its predecessor.
Changes to the Declaration was made at the request of taxpayers and tax professionals said the IRS.
If you don’t want to fill out a 1040 by yourself Declaration, the special software will do it not worse than you.
What has changed in the tax return (form 1040)
Left three numbered report in 2019, which is two times less than it was in 2018. Some reports have been combined on one page, so now they take up half the pages.
Reports are additional forms that you in certain cases to fill in form 1040.
No notes on health insurance
Last season, filing tax returns, form 1040 included the notation “Full coverage health insurance or exemption from taxes.”
You (or your program to compile tax returns) put a check mark in this box if you have or had medical insurance for the whole 2018, or you have been exempted from the requirements of the law “On affordable care” about the insurance.
If you did, you probably had to pay a fine for not having insurance, which was to be paid at the time of filing a tax return.
However, in this season of filing taxes this notes in the form of a 1040 no more, because this line is not fine.
Changes for the elderly
Last season for filing tax returns is one of the biggest changes in the Federal tax returns was an exception for form 1040-EZ. All used a form 1040 for the year 2018.
However, in 2019 returned to the two versions of Federal tax returns: form 1040 and form 1040-SR.
1040-SR is designed for the elderly. Taxpayers born before January 2, 1955, can use it instead of the 1040.
1040-SR is almost a complete copy of the 1040, with the difference that, 1040-SR has a larger font size, and contains the “Standard deduction chart”, which reflects the additional standard deduction amount, which you usually can claim elderly.
Please note that the schedules for the 1040 and 1040-SR are the same. For example, older people will need to fill out an Application And, regardless of whether they use form 1040 or 1040-SR.
Line costs and income
Form 1040 for 2018 did not include a line for income gains or losses.
In this season of filing tax returns 1040 and 1040-SR have a special line for income or loss (line 6). In some situations this year, taxpayers may be required to complete Application D .
Information about the virtual currency
In Annex 1 of the tax return for the year 2019, you need to specify the operations with the virtual currency. The IRS advises that taxpayers who have made transactions using virtual currency must submit this report along with their tax return.
Question in Annex 1 States: “for 2019 you have received, sent, exchanged, or sold something, receiving any virtual currency?”
How the IRS defines the concept of virtual currency is not limited to “convertible” virtual currencies such as Bitcoin, which have an equivalent value in real currency.
If you sell or exchange virtual currency, use it to pay for goods or services or making investments, as a result, you may have a tax liability. It is therefore not surprising that the IRS wants to know about transactions in the virtual currency.
In fact, the Agency also reminds taxpayers that they must keep a record of the virtual currency:
“The tax code and regulations require taxpayers to keep records that support the information presented in tax returns. Taxpayers must keep records documenting the receipt, sale, exchange or other disposition of virtual currency and to provide a fair market value of virtual currency”.