The revised “postcard” form (not yet officially released) has reduced the size of the 1040 from two full pages of previous versions to one double-sided half page.
Many of the items reported on the 1040 will be calculated on 6 new worksheets.
- Additional Income and Adjustments to Income, includes business income, alimony, capital gains or losses, and educator and student loan interest expense.
- The “Kiddie Tax”, the alternative minimum tax, and excess premium tax credit.
- he foreign tax credit, the credit for child and dependent child care, the education credit, and the residential energy credit.
- The household employment taxes, the health care individual responsibility payment, the net investment income tax, and the additional Medicare tax.
- Payments and Refundable Credits, including estimated tax payments, the net premium tax credit, and extension request fees.
- Foreign Address and Third Party Designee.
The following existing schedules are referred to in the new form 1040, Schedule A, Schedule C, Schedule D, Schedule E, Schedule F, Schedule H, Schedule SE, and Schedule 8812 (Child Tax Credit). However, Schedules B, Schedule J, and Schedule R, are not mentioned.
The new 1040 “only adds needless complexity and confusion,” said Democrat Representative Lloyd Doggett of Texas. “The longer Form 1040, which all taxpayers have used for decades, is being replaced with Republican mythology that will only complicate tax filing.”