New Tax Form for Seniors.

brianbennett863

With the onset of the tax season (in the US) for 2020 income, there is a nice new form that makes life a little easier for those who are 65 years old and older.... 1040-SR. I know that most of you on the forum are much younger, but there are still a few baby boomers like me.
To qualify for this, you must have been born on or before January 2, 1956. This simplifies some things that used to be in multiple forms, although you will still have to attach Appendix 1 if you have received a state tax refund. But the nice thing about the new 1040SR is that you can use it either for standard deductions or for itemized deductions (which also requires Schedule A).... in the past, simplified 1040 forms like this could only be used for Standard Deductions. And if you choose the Standard Deduction now (there is a table at the bottom of the SR form for this), you will receive from $ 13,700 to $ 30,000, depending on the filing status and the number of fields marked. The form also has some other features that are convenient for older people, such as a larger font and spaces for numbers.
I am tempted to use it myself this year, although I usually go down the path of increased complexity with itemized deductions, since I get large returns due to itemization. This year, however, with the new simpler form and the good level of standard deduction they give you, it might have been worth it to just go with the standard ..... the relatively small additional refund I would have received with the transfer may not be worth the additional documents ... and the IRS is probably less likely to audit the standard deduction.
In addition, the question inevitably arises whether Incentive Checks issued by the government are taxed. The research I did seems to be no, they are not subject to federal tax, although different states may have different laws on this subject. But, as far as the Tax Service is concerned, this is just the government's way of wishing you a Merry Christmas.
Brett Jacks, this new form may also be interesting to you, since you are engaged in tax preparation by profession and probably do a fair amount of work with elderly people.

drakeheyman093

If you do not own any business, it is not difficult to calculate your taxes. If you own a business, spreading your finances is the worst thing that happens every month. It's crazy red tape with tons of paperwork, calculations that have to be very accurate, and more. If you're a regular individual, however, managing your taxes can help you with your payroll. Just learn how to make your own pay stubs, and that's it. There's nothing complicated from here. Paper checks will serve as proof of your income and contain all the information about losses and taxes. Even a child can figure it out.

JasmineHart

Do you do your taxes by hand using just the forms?

edwardbarnett

You're never going to get audited. I'd be interested to see the number of returns that aren't Schedule C or more complex that get audited.