Feb 14, 2024 By Triston Martin
The Bipartisan Budget Act of 2018 finally made a significant step in the right way by allowing for this form, which is part of a multi-year effort by lawmakers to ease some of the financial burdens of filing taxes for older citizens. People 65 years old or older may file their taxes using a new form called the 1040-SR. Form 1040-EZ was eliminated in 2018 when the IRS revised the standard Form 1040 tax return.
The Seniors Tax Simplification Act, which included the first proposal for Form 1040-SR, was passed in 2013. The measure had the backing of many organizations, including the National Taxpayers Union, the Association of Mature Americans, and the AARP; however, it did not get approval from the Senate then. On the other hand, President Donald Trump signed the Bipartisan Budget Act (BBA) on February 9, 2018, making it a law. Form 1040-SR resulted from the BBA's mandate that the IRS develop and make available a tax return tailored to the needs of senior citizens.
This year, the Internal Revenue Service accepts tax returns submitted on Form 1040-SR from taxpayers born before January 2, 1957. Users of this form do not need to be retired to be eligible. If you are married and paying your taxes as a married couple, just one partner has to fulfill the age requirement. Those obligated to file taxes are not forced to utilize this form; anybody may continue to use the standard Form 1040.
Form 1040-SR is available to those over 60 in two different methods. On its website, the Internal Revenue Service (IRS) provides users with a digital version of the form. After completing it, you can either save it to your computer or print it off. In addition, if you use trustworthy tax software to prepare your return, you may get access to the form via the product's supplier. The Internal Revenue Service reports that more than 90 percent of taxpayers prepare and submit their tax returns with software assistance.
When you first look at Form 1040-SR, it's possible that you won't know that you're not looking at the ordinary Form 1040. A significant number of the lines and portions are identical. You will need to input your personal information at the top of the first page. This includes your name, address, Social Security number, and filing status.
This is followed by the area in which you are required to specify whether anybody else may claim you or your spouse as a dependant. If you find yourself dealing with many schedules, a tax expert may be able to assist you. If you discover that you need to fill out and submit multiple schedules in connection with Form 1040-SR, you may require their assistance. On the second page of Form 1040-SR, you will either claim your standard deduction or the sum of your itemized deductions, which will be computed on Schedule A. You must submit Schedule A with your tax return if you itemize your deductions. If you want to take the standard deduction, there is a place for you to list your charitable donations on page 2.
Electronic submission of Form 1040-SR is possible, much as electronic submission of Form 1040. The Internal Revenue Service (IRS) advises taxpayers to submit their tax returns electronically rather than on paper forms because processing paper returns may take longer. If your adjusted gross income was $73,000 or less in 2021, you are eligible to use the IRS Free File program on its website. If you do not submit your tax return electronically, the mailing address for your finished return is determined by the state in which you reside and whether or not you include a payment. On its website, the Internal Revenue Service (IRS) offers a database of the addresses for each state.
Because of the nature of their retirement earnings in previous years, a significant number of senior citizens were required to file the more difficult Form 1040. The Internal Revenue Service (IRS) offered Form 1040-EZ until the end of 2017, intending to simplify the process. However, this form imposed restrictions on the total income that could be reported, capping it at $100,000 and limiting interest income to $1,500 annually. Form 1040-EZ was eliminated in 2018 when the IRS revised the standard Form 1040 tax return. Even senior citizens who met the income requirements for Form 1040-EZ were no longer eligible to use it.