Schedules

What's with these new forms?? 4 of 4

Schedule 5 – Other Payments and Refundable Credits

Prior year overpayments applied to 2018 or estimated tax payments made throughout 2018 can be found here. Refundable credits not already claimed elsewhere on the return can be claimed using this schedule.

 

Schedule 6 – Foreign Address and Third-Party Designee

If the taxpayer has a foreign address or if you wish to allow a third party other than your tax preparer to discuss your return with the IRS, you can do that using this schedule.

 

Getting your head around and navigating the new form and schedules may seem overwhelming at first, however the reality is the old form’s information fields are for the most part the same. The difference is that they are now spread out as described in the previous posts instead of summarized into 2 pages as before. If you take your time and review everything you should be able to navigate the new form with as much familiarity as you did the old. If you need any assistance with the new form or with your tax needs, contact us and we’ll be glad to help.

What's with these new forms?? 3 of 4

Schedule 3 – Nonrefundable Credits

This schedule should be used to report certain nonrefundable credits. The credits may include Credits for Educational Expenses and Dependent Care Expenses along with General Business Credits. Please note, the child tax credit or credit for other dependents is not reported on this schedule.  

Schedule 4 – Other Taxes

Taxes other than Income Taxes, such as Self-Employment Tax or Household Employment Tax and even the Health Care individual responsibility payment should be reported here. It should be noted, if you are required to use this schedule there are likely additional complexities to your return and that will not be covered here, however I would encourage you to research further or seek the advice of a professional.

 

Schedules 5 and 6 next…

What's with these new forms?? 2 of 4

Schedule 1 – Additional Income and Adjustment to Income

The majority of the line items formerly found on the body of 2017 Form 1040, page 1 is now found on Schedule 1. Income such as Capital Gains or Business Income and Adjustments as Educator Expenses or Deduction for Self-Employed Tax will be reported here. Don’t fail to take a look at Schedule 1 (or any of the other schedules for that matter) to make sure whether any of these line items are relevant to you and should be included with your return.

Schedule 2 – Tax

If you are subject to the Alternative Minimum Tax (AMT) or have to pay back some of the Premium Tax Credit, you will use this form to report those amounts. It should be said, if any of the schedules are not relevant to your return, in other words, do not contain information they are not required to be included with your return.

 

Schedules 3 and 4 next…

What's with these new forms?? 1 of 4

Form 1040 – U.S. Individual Income Tax Return 

Along with a change in tax laws, another visible change that taxpayers will have to deal with when filing their 2018 Tax Returns is the “new and improved” Form 1040. Gone are the 3 options available for taxpayers for years 2017 and prior, 1040, 1040A, and 1040EZ. Therefore, since Forms 1040A and 1040EZ are gone, the best comparison is between 2017 and 2018 Forms 1040.  

2017 Form 1040 has now been separated into one main form and 6 additional schedules. In this series, we will try to help you navigate through the new form.

 

Sooooo much empty space.

Page 1 - Includes personal information for the Taxpayer, Spouse and Dependents in much the same way the old form used to show this information. On this page, you will find information fields for the paid preparer, again similar to the old form. And finally, signature blocks for all applicable parties will be found on this page. In previous years, these information fields would have been found in the 2017 Form at the very beginning and at the very end of Page 1 and 2, respectively.

 

Even more empty space….

Page 2 - The majority of basic returns, ones reporting only wage income with standard deductions, will use this form and report that information on page 2. This page can also be seen as a summary page for items detailed throughout the schedules, when necessary. Additionally, you can find your annual tax liability as well as refund or amounts due on this page.

 

Schedules 1 and 2 next…

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