Yes, your tax return is going to look a bit different this year. Fortunately, the changes aren’t too drastic, so there is no need to panic. But to ease your mind, we’ve compiled a brief summary of the changes for you to read below.
- The basics, such as spaces to list names, addresses, and social security numbers, can still be found on page one of the 1040.
- The amount of federal tax withheld from your W-2 can still be found on page two.
- The refund you will receive or the amount of taxes you owe can still be found at the bottom of page two.
- For starters, the new form is shorter than it was previously. To accomplish this, many line items were reorganized to other forms and schedules.
- This reshuffling resulted in the creation of six new numbered schedules in addition to the current lettered schedules. They report as follows:
- Schedule 1 – Additional Income and Adjustments to Income
This is where you’ll find your schedule C income, your capital gains income, and your rental income, to name a few items.
- Schedule 2 – Taxes
- Schedule 3 – Nonrefundable Credits
This is where you’ll find credits such as the foreign tax credit and credit for child and dependent care expenses.
- Schedule 4 – Other Taxes
This is where you’ll find items like Self-Employment Tax and Household Employee Tax.
- Schedule 5 – Other Payments and Refundable Credits
This is where you’ll find the estimated tax payments you made, any payments made with an extension to file request, or any over payment applied forward from your 2017 tax return.
- Schedule 6 – Foreign Address and Third Party Designee
- Your AGI can now be found on page two of the 1040, line 7.
- Only two lines are provided (instead of the previous four) to list dependents.
- The signature lines have been removed from page two and can now be found on page one.
As you can see, the changes are noticeable, but manageable, so be sure to choose the right tax professional to prepare your 2018 taxes. To make that choice a bit easier Alfano & Company would love to not only prepare your tax return and but also assist you in understanding it. Contact us to get started!