TAX TIP TUESDAY: Here Comes the New 1040...
Prepare yourself for many changes to your typical tax return- there’s a new Form 1040 with six schedules attached. Now that the new 040 is finalized, here are the 2 main takeaways for this tax season:
The main form is smaller, but additional schedules will be required. The new Form 1040 may appear simpler, but the filing process is more complex. In fact, the instructions to help complete the new form checks in at 117 pages — 10 more pages than last year! Most of the same information is still required, but spread over multiple forms. Industry experts are planning for a 20 percent increase in tax prep time for this filing season.
Forms 1040A and 1040EZ are no longer available. If you previously filed with one of these forms, you will now be using the new Form 1040. In addition to learning the new form, there's a good chance that you'll need to add at least one of the new schedules to complete your tax return.
What can you do?
The best advice is to start preparing now. Grab last year's tax return, and create a checklist of documents you need to gather. Pull together receipts, travel logs and other documentation. The more organized you are, the quicker and easier the process will be for you. Have questions? Call 805-496-2828 for help or to set an appointment.
