New Tax Code: Not As Simple As Advertised

As the IRS prepares to release the 2018 edition of the 1040 Tax Return on what it calls a, "Postcard," it should be noted that this is simply a clumsily condensed version of the old 1040, and represents little in the form of simplification of tax filings for the American taxpayer. The Postcard, in actuality, is most of the information that was previously included on the prior year 1040 in summary form, save for a few lines that are no longer necessary due to changes to the tax code. The taxpayer is left to uncover the detail behind that summary and fill out one of six additional schedules, where applicable.

This is laughable because it's not THAT different from the substance of the previous 1040. When was the last time you did your tax return by hand? That's what I thought. It doesn't matter that the 1040 is marginally simpler to fill out by hand because NOBODY does that anymore (I'm being facetious to a certain extent here...if you are one of "those people," please contact us to help bring you to the 21st century). The real concern here is that people who relied on software or a tax professional (hopefully a CPA) to help them through the process might mistakenly think this is a check the box type of form now and therefore leave valuable deductions on the table.

By and large, there will be many taxpayers who have a simpler filing, but not a simple filing. Don't let the rhetoric fool you in to complacency. Educate yourself or reach out to us and we can help guide you through how the 2018 tax changes will impact your unique circumstances. We can also help you adjust your withholdings accordingly to avoid surprises comes tax day.