IRS Releases draft of new simplified new form 1040-SR for Seniors for the 2020 Tax Season

If you are 65 or older (or turn 65 any time in 2019), you will have the option to use a new simple tax form for seniors, known as the 1040SR, when you file your 2019 taxes in April 2020.

The IRS has released a draft of the new simplified tax individual income tax form, Form 1040-SR. The draft of the Form 1040-SR is two pages long. It allows seniors of any filing status to use the form. It also allows senior taxpayers with dependents to use the form. The draft Form 1040-SR allows taxpayers to enter income from wages, salaries, tips, interest, dividends, IRA distributions, pensions and annuities, and social security benefits and to report taxable amounts of IRA distributions, pension and annuities and social security benefits.

The draft Form 1040-SR also provides for reporting capital gains or losses on line 6 and prompts the taxpayer to attach a Schedule D, if required. On line 7(a), Form 1040-SR allows senior taxpayers to report other income that may appear on Schedule 1. Other income reported on Schedule 1 includes alimony and unemployment compensation.

On line 9, the draft Form 1040-SR prompts the taxpayer to enter either the standard deduction or itemized deductions from Schedule A. Taxpayers using Form 1040-SR will be able to claim the qualified business income deduction on Line 10.

The draft Form 1040-SR also allows taxpayers to claim the child tax credit or credit for other dependents, the Earned Income Credit and American opportunity credit.