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New tax form available to the public

On Behalf of | Dec 31, 2018 | Income Taxes

Georgia residents may have heard that the new Form 1040 is going to be shorter than previous versions. This was one of the benefits touted by those who supported the Tax Cuts and Jobs Act (TCJA). However, taxpayers should be aware that there are six schedules that could need to be attached to the new form. Individuals who owe self-employment taxes or tax deductions or who need to pay the alternative minimum tax (AMT) will have to go through this process.

Self-employment tax deductions are reported on Schedule 1 while AMT payments are reported on Schedule 2. Capital gains and unemployment benefits that are subject to taxation are also reported on Schedule 1. Those who owe self-employment taxes will report them on Schedule 4 along with anyone who owes household taxes. If an individual requests an extension to file their taxes, any payment made at that time will be submitted on Schedule 5.

Taxpayers who have an address outside of the United States will have to file Schedule 6. Although the final version of the new form and schedules are available on the IRS website, it is not known when taxpayers can start to file their returns. This date is likely to be impacted by the resolution of the current government shutdown as it impacts how the IRS operates.

Failing to file an income tax return or failure to do so properly could result in an audit from the IRS. This may be true even if the error was inadvertent. Financial and other penalties could be applied from the date that the taxes were originally due. Anyone who has questions about their case or wants a third-party to talk with the IRS may want to hire an attorney.