Seniors will find it easier to file federal income tax forms for the 2019 tax year. The new form, courtesy of the Internal Revenue Service (IRS), enables seniors to file their federal taxes more efficiently. Form 1040-SR consists of larger print and the elimination of shaded areas surrounding the boxes. The form will also include a Standard Deductions Chart. In 2018 and previous years, the tax form did not include a Standard Deductions Chart. Instead, seniors had to research their deductions in a separate pamphlet.
Many Seniors Will have a Chance to Pay their Taxes without any Difficulties
Form 1040-SR is still in the formative stages. The new senior tax filing form will emerge as a result of U.S. Congress legislation insisting that the IRS allow seniors to file their tax forms without needing to pay for an accountant. Many seniors wish to handle their financial affairs without any outside assistance. The form’s purpose is to cater to seniors who do not use computers and prefer filing traditional paper tax forms.
Form 1040-SR Offers Seniors a Better Way to File Tax Forms
Millions of senior taxpayers may benefit from the new tax form. The AARP has already endorsed the form. The new 1040-SR tax form is similar to the newly extinct 1040-EZ form. Seniors who have earnings from capital gains and dividends can use Form 1040-SR. Seniors receiving annuities, pensions and distributions from Individual Retirement Accounts (IRAs) will benefit from using the simplified form. Plus, seniors who take care of dependent children or grandchildren can take the child tax credit on Form 1040-SR.
Self-employed Baby Boomers must use Form 1040
Self-employed seniors are not permitted to use Form 1040-SR. Instead, they need to use Form 1040 that includes Schedule C. Seniors who itemize deductions will need to use the standard Form 1040. The Bipartisan Budget Act of 2018 is the final result of the congressional battle to help seniors pay their taxes without experiencing any issues. The new form is easier to read and makes filing taxes less burdensome to numerous older seniors. One catch is that a person must reach the age of 65 before January 1, 2020 to qualify. Otherwise, they will need to file Form 1040.