New Format for 1040

An earlier post discussed the new format of Form 1040 for the 2018 tax year.  The first draft form with the new format was issued at the end of June 2018.  The new format has significantly fewer lines on Form 1040 itself.  However, many items will now be reported on 6 separate schedules that flow into Form 1040.

At the end of September 2018, the IRS released draft instructions for the 2018 Form 1040, and the instructions indicate that the new format of Form 1040 will be used for the 2018 tax year.  (In addition to the redesign of Form 1040, the IRS has indicated that Form 1040A and 1040EZ will no longer be available, beginning with the 2018 tax year.

Since the new format of Form 1040 represents such a significant change from the format that has been in place for so many years, practitioners will need to get acclimated to the new format.  As a result, practitioners should install early release versions of their 2018 tax software as soon as they become available, so that they can begin to get used to the changes.