As we move on past the October 15th extended deadline for individual taxpayers, you might like to know about a new IRS form for future reference. Form 1040-SR is available as an optional alternative to using Form 1040 for taxpayers who are age 65 or older. Form 1040-SR uses the same schedules and instructions as Form 1040 does.
Idaho Theological Seminary (ITS) is a private college exempt under Internal Revenue Code section 501(c)(3) and 170(b)(1)(A)(ii). They are not required to file Form 990 annually.
The Accounting Team at ITS called with an “off-topic” question…
“We know this is not a question you usually get, but we have several retired professors and administrators who live near our campus and volunteer at the Seminary. We help all of them with their Form 1040 each year. Many of them extend their returns each April and can be daunted by Form 1040 and its schedules. Are there any tips you might give us for helping them with their taxes? The recently changed forms are kind of difficult to follow sometimes.”
“Actually, there is a new IRS form – Form 1040-SR, U.S. Tax Return for Seniors. It uses the same schedules as Form 1040, but the print is larger, the instructions more clear, and there’s a great table at the end of the form for deciphering the taxpayers’ Standard Deduction. Also, be careful – as always – in filling out the Social Security Benefits Worksheet in the instructions – it is somewhat convoluted.”
“That is great. We’ll take a look at it?”
From IRS webpage “New Form 1040-SR, alternative filing option available for seniors”:
The Internal Revenue Service wants seniors to know about the availability of a new tax form, Form 1040-SR, featuring larger print and a standard deduction chart with a goal of making it easier for older Americans to read and use.
The Bipartisan Budget Act of 2018 required the IRS to create a tax form for seniors. Taxpayers age 65 or older now have the option to use Form 1040-SR, U.S. Tax Return for Seniors. Form 1040-SR, when printed, features larger font and better readability.
Taxpayers who electronically file Form 1040-SR may notice the change when they print their return. More than 90% of taxpayers now use tax software to prepare and file their tax return.
Taxpayers born before January 2, 1955, have the option to file Form 1040-SR whether they are working, not working or retired. The form allows income reporting from other sources common to seniors such as investment income, Social Security and distributions from qualified retirement plans, annuities or similar deferred-payment arrangements.
- We hear from numerous Accounting Teams who help retired folks with their Form 1040s.
- The new Form 1040-SR, U.S. Tax Return for Seniors, may be easier to follow than the standard Form 1040.
- The lines on Form 1040-SR are virtually the same as Form 1040 and the forms use the same schedules.
- The IRS’ stated goal for Form 1040-SR is, “making it easier for older Americans to read and use.”
The information provided herein presents general information and should not be relied on as accounting, tax, or legal advice when analyzing and resolving a specific tax issue. If you have specific questions regarding a particular fact situation, please consult with competent accounting, tax, and/or legal counsel about the facts and laws that apply.
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