In a bid to simplify the tax filing process for many Americans who have quite a very simple tax affair, the Internal Revenue Service introduced a new and smaller Form 1040. This change saw many of the lines of the previous form moved to six new schedules. What are these new schedules and who are they for? Tax blog, American Tax Service provides answers to all these questions in its latest post.
The first schedule, the Additional Taxes and Adjustments to Income is used to report certain types of additional income or adjustments. This could include, capital gains, wins from gambling, unemployment compensations, etc. Student loan deductions must also be entered into this schedule.
The second schedule is seldom used as it pertains to only a few sets of people who pay the alternative minimum tax (AMT).
Schedule 3 is for Nonrefundable Credits and it applies to all nonrefundable credits apart from the child tax credit, or any other dependency-based tax credits.
Other federal taxes like the self-employment tax, household employment taxes and any additional taxes on your retirement plans can be reported using Schedule 4.
Should you decide to claim certain refundable credits or report any withheld payments, then Schedule 5 will come in handy.
The sixth and last schedule is used only if you have a foreign address. It is mostly used by Americans living and working abroad. This schedule allows a third-party file taxes on your behalf.
The American Tax Service sums up its post by recommending that taxpayers file their taxes online with the H&R Block. The H&R Block is up to date with the latest IRS tax forms and schedules and it helps taxpayers find their w2 form and file their taxes online.
To find out more about the IRS 1040 Form and the six new schedules plus how to get a 35% discount for filing your taxes online with the H&R Block, please visit, https://americantaxservice.org/the-six-new-form-1040-schedules/