1040 PostCard

[Abby Normal]

Hopefully, the AICPA and all the other organizations, along with the tax software companies will fight this ridiculous move.

And it's a big deal because we should not have be subject to these changes. As a preparer, I can only see this slowing me down. As a taxpayer, it's a tremendous waste of time.

[Catherine]

31 minutes ago, rfassett said:

I am just failing to see the big deal. 

I'm with you, @rfassett - that's what I was trying to say.  It's just a more-summarized summary.  Overdue, to my mind.  The 1040 has been masquerading as a standalone, and unless your return is dead-simple (one W-2, no interest, dividends, gains, or doggone near anything else), it's not, and hasn't been that for decades.

[Abby Normal]

It's not 'postcard sized', it's half a page, which is stupid. Just make it one page! And since we efile everything, this is an exercise in ridiculousness.

I'm hoping the software companies will be smart enough to print it on one letter sized page and not two pages that are half blank.

[Catherine]

14 minutes ago, Abby Normal said:

two pages that are half blank

The Massachusetts return is now FOUR pages that are each 2/3 blank.  Only the middle third has ANY information other than name.  It is a royal PITA.  So don't hold your breath.

[Lee B]

It is a big deal, because they could just have eliminated the alimony and the DPAD adjustment lines at the bottom of page 1,

replaced the exemption line with the 20 % PTE Deduction at the top of page 2 and left the rest of Form 1040 unchanged.

Then added 1 new form to calculate the PTE Deduction instead of creating 6 new supporting forms ?

What a waste !

 

[Abby Normal]

2 hours ago, Catherine said:

The Massachusetts return is now FOUR pages that are each 2/3 blank.  Only the middle third has ANY information other than name.  It is a royal PITA.  So don't hold your breath.

MD went from 2 to 3 and now 4 but really didn't add that much. I prefer compact but easy to read. The trend in computers is more spacing resulting in more scrolling. I'm looking at you, QuickBooks!

[mwrightea]

Colorado went from one page to six pages in the last few years.

[Bart]

Missouri went from 2 pages to 5 pages last year.

[Jack from Ohio]

About 8 years ago, Ohio simplified from 2 pages to 4.  2016 they added more worksheets/attachments, so now the common return has been simplified to 6 pages.

Some "not so informed" salesman, sold the State scanners to read the "simplified" forms.  It is so smart, it cannot read a duplex page if the second page is "upside down."

[Lion EA]

A year after NY added pages, CT simplified from 2 pages to 4.  But, add pages if your have CT AMT, EIC, credits for taxes paid to other jurisdictions, ES, etc.  And, CT threw in a page of instructions, which is silly if I'm e-filing their returns.  And, a second page of instructions if there are ES payments.  With tax "simplification" my job is secure!

[JohnH]

Like Ron & Catherine, I've had trouble seeing what the problem is as well.  There are so many unused lines on the 1040 for most taxpayers, and it really isn't comprehensive in any meaningful sense.  Better to populate the main form with info from supporting schedules.  I'm sure there will be tweaks they should still make, but overall I think it's a good idea.  

I suspect that tax preparers (Drake user, for example) who are already accustomed to using data input screens will not find this problematic.  They don't depend upon seeing the 1040 on their screen to achieve data input in the first place, so sub-schedules and distributed input is already more natural to them.  It appears that the new 1040 layout actually forces one to become less dependent upon "Forms Based Entry".   Maybe that's one reason there's so much angst about it on this forum.

And of course as Ron said, at the end of the process you're going to be e-flinging the return anyhow. 

[Lee B]

After so many years of using ATX and other forms based software before ATX, seeing the $ amounts that I expect to see on the the same lines year after year

helps me as I work me way through each return before I actually perform a detailed double check. These changes will lower my productivity next year,

because I will have to take more time.

[Jack from Ohio]

I am beginning to see this "postcard" as a huge income opportunity.  All the people that will try to do this, using DIY software, and either get totally confused, unable to complete it, or send it in wrong and receive a notice, will need someone to "fix it."

[JohnH]

I don't mean to be argumentative, but I just don't get the reasoning, Jack.  Most taxpayers are much less 1040-dependent than your average tax preparer who is infatuated with Forms Data Entry.  The taxpayer doesn''t have a clue about the layout of the 1040 to begin with.  As a matter of fact they are more comfortable with data entry screens than your average ATX-using tax pro.  For the most part, they won't make any more errors with the new forms than they did with the old,  because they are just answering questions and entering info on a data entry screen just like they did last year.  They don't even see a form until they print out their file copy of the already-electronically-transmitted return (assuming they even do that).  But I'm willing to admit that maybe I'm missing something big here.  

[taxxcpa]

8 hours ago, JohnH said:

.  They don't even see a form until they print out their file copy of the already-electronically-transmitted return (assuming they even do that).  But I'm willing to admit that maybe I'm missing something big here.  

I agree.  I used Turbo Tax and was even able to import all of my brokerage statement forms.  It works as well as ATX or Drake which I used before I retired.

 

[Catherine]

14 hours ago, JohnH said:

e-flinging the return

I just LOVE this way of putting it!

[JohnH]

I can't claim originality.  I got it from Jerry Mealer  many, many years ago.

[FDNY]

I don't know, maybe I'm being cynical as some people are pushing the postcard size to satisfy their own reasoning to portray simplification, when in reality I think it will cause more complications, more likely for us and the taxpayers than them.

I guess we still have to wait as maybe they need to test run this.  Let's hope they come up with true simplification or adjustments that make it easy, but I have no faith in them whatsoever..

Couldn't they just leave the 1040 as is and just omit and add what is necessary?   Familiarity seems to be what people like, at least for us mature people.  No, that would be too logical and sensible, they need to put their approval stamp on it for their egos and for everyone to think a postcard idea (like that is tax reform) is better than a letter size, we shall see.

 

[Evan S. Golar]

I haven't seen the IRS publicize the time element involved in reading and learning the tax law and then reading the instructions to fill out the forms.

[Nomotaxes]

The 990-N is called a postcard filing and processed electronically. However it is merely informational and for instances where 990-EZ is not required.  I don't see a postcard working for a federal individual income tax return. 

[Catherine]

3 hours ago, Nomotaxes said:

I don't see a postcard working for a federal individual income tax return. 

Isn't that the standard joke?  The two-line tax return: 

1. What did you make last year? 
2. Send it in!

[Joel]

14 hours ago, Catherine said:

Isn't that the standard joke?  The two-line tax return: 

1. What did you make last year? 
2. Send it in!

To really get a good laugh add the following:   3.  What we don't need we will send back.

[Abby Normal]

On 6/28/2018 at 10:35 PM, JohnH said:

print out their file copy

You wish. Everyone I've ever taken on as a client has never bothered to print out the return, and they ask, 'can't you get a copy?'

[Abby Normal]

The worst part for software developers is that they now have to spend time rewriting the basics and will have less time to implement real improvements. This is a solution in search of a problem.

[jklcpa]

51 minutes ago, Abby Normal said:

The worst part for software developers is that they now have to spend time rewriting the basics and will have less time to implement real improvements. This is a solution in search of a problem.

I agree with this and think it's a waste of money.  The last I read, the IRS was already estimating that implementing the new law would cost the agency in the $400-500 million range, and I'm not sure if this postcard was factored into that.  What's more, this has a cascade of affecting the states too where every form and instruction that picks up entries from the federal forms or references any line numbers will all require revisions. 

In the end, we will all get used to it and learn where everything is, but it will slow my review of returns down slightly in the beginning, and I expect some clients will not like the subschedules.