Form 1040-SR. Form 1040-SR, U.S. Tax Return for Seniors, has been introduced for 2019. You can use this form if you were born before January 2, 1955. The form generally mirrors Form 1040.
Fewer numbered schedules. This year, there are only 3 numbered schedules instead of 6. Schedules 2 and 4 were combined into Schedule 2 and it’s where you will report any additional taxes you may owe. Schedules 3 and 5 were combined into Schedule 3 and it’s where you will report any credits that you didn’t claim on Form 1040 or 1040-SR.
IRA and pension reporting. You will now report your IRA distributions and pensions and annuities on separate lines. Use lines 4a and 4b on Form 1040 or 1040-SR to report IRA distributions and the taxable amount. Use new lines 4c and 4d to report pensions and annuities and the taxable amount. See the instructions for Lines 4a and 4b and Lines 4c and 4d, later.
Capital gain or (loss) is now reported on line 6. In 2018, capital gain or (loss) was reported on Schedule 1 (Form 1040), line 13. In 2019, it will be reported on Form 1040 or 1040-SR, line 6.
Health care coverage shared responsibility payment. For 2019 you no longer need to either make a shared responsibility payment or file Form 8965 if you don’t have minimum essential health care coverage for part or all of 2019. The “Full-year health care coverage or exempt” box has been removed from Form 1040.
Standard deduction amount increased. For 2019, the standard deduction amount has been increased for all filers. The amounts are:
• Single or Married filing separately—$12,200.
• Married filing jointly or Qualifying widow(er)—$24,400.
• Head of household—$18,350.
Qualified business income deduction. The simplified worksheet for figuring your qualified business income deduction is now Form 8995, Qualified Business Income Deduction Simplified Computation. If you don’t meet the requirements to file Form 8995, use Form 8995-A, Qualified Business In-come Deduction. For more information, see each form’s instructions.
Alternative minimum tax (AMT) exemption amount increased.The AMT exemption amount is increased to $71,700 ($111,700 if married filing jointly or qualifying widow(er); $55,850 if married filing separately). The income levels at which the AMT exemption be gins to phase out have increased to $510,300 ($1,020,600 if married filing jointly or qualifying widow(er)).
Qualified opportunity investment. If you held a qualified investment in a qualified opportunity fund at any time during the year, you must attach Form 8997, Initial and Annual Statement of Qualified Opportunity Fund (QOF) Investments, to your return. For more information, see Form 8997 and its instructions.
Virtual currency. If, in 2019, you engaged in a transaction involving virtual currency you will need to file Schedule 1. See the instructions for Schedule 1 for more information.Email address.An optional field for your email address has been added to Forms 1040 and 1040-SR.
Medicaid waiver payments. Changes have been made to how Medicaid waiver payments are treated for purposes of the earned income credit. See the instructions for line 18a.