New Tax Forms – What Changed? April 4, 2019

Theresa Grover Accounting Instructor Northeast Wisconsin Technical College Theresa.grover@nwtc.edu Associate Lecturer University of Wisconsin – Green Bay grovert@uwgb.edu

2017 Tax Forms

New Form 1040

Form 1040 – page 1 First page is personal information and dependent information. Signature for paper filing is also now on first page.

Form 1040 – page 2 Schedule 1 Schedule 2 Schedule 3 Schedule 4

Form 1040 - Schedule 1 Used to be lines 10 – 14 & 17 – 19 & 21 from old Form 1040 Bottom part of old Form 1040 – Deductions for AGI

Form 1040 - Schedule 2 Old Form 1040, page 2, lines 45-47

Form 1040 - Schedule 3 Old Form 1040, page 2, lines 48 - 55

Form 1040 - Schedule 4 Old Form 1040, page 2, lines 57 - 63

Form 1040 - Schedule 5 Old Form 1040, page 2, lines 66 & 77-74

Form 1040 - Schedule 6

Earnings (wages, salaries, tips, etc.) Questions about earnings: 2017 return: Form 1040 - lines 7 + 12 +18 + box 14 (code A) Schedule K-1, Form 1065 2018 return: Form 1040, line 1, Schedule 1, line 12 + 18, Schedule K-1 Box 14 (Code A)

Other changes for 2018 No deduction allowed for exemptions Standard deduction increased 2017 2018* Married filing jointly/Qualifying widower $12,700 $24,000 Head of Household $9,350 $18,000 Single/Married Filing Separately $6,350 $12,000 * Adjusted partially to make up for exemption deduction being removed

Filing Status Single Head of Household Married Filing Jointly Qualifying Widower Married Filing Separately Not married Provide more than half the cost of keeping up a home for a qualified dependent Taxpayers who live apart but aren’t legally separated Claimed for 2 years after spouses death Legally married Legally separated under divorce decree Taxpayers whose spouse dies during the year and didn’t remarry Must have a dependent child you paid more than half the cost of keeping up a home for Widowed with no dependents

Married Filing Separately Tax rates are highest for the married filing separately filing status Some taxpayers choose the married filing separately filing status so that one spouse will not be responsible for the other spouse’s tax liability Education Credits are disallowed Earned Income Credit is disallowed

Head of Household Usually applies to unmarried taxpayers, but can apply to “abandoned spouses” who are married, but are treated as unmarried for purposes for filing Head of Household Abandoned spouse is married and: Lives apart from his/her spouse for the last half of the tax year, and Pays over 50% of the household costs where the taxpayer and a dependent son or daughter live.

Head of Household (continued) For unmarried persons, Head of Household filing status requires that either of the following criteria be met: The taxpayer pays over 50% of the household costs where, for over half of the year, the taxpayers lives with a : “Qualifying child”, or Dependent relative The taxpayer pays over 50% of a dependent parent’s household costs. (dependent parent does not have to live with the taxpayer)

Questions?