What Happened to the 1040 Short Form for Taxes?

Taxpayers searching for simplified tax forms, such as the 1040-EZ or 1040-A, will find they are no longer available. The Internal Revenue Service (IRS) discontinued these “short forms” following the 2017 tax year due to the Tax Cuts and Jobs Act of 2017. Since the 2018 tax year, all individual taxpayers have been required to use the redesigned Form 1040, which serves every taxpayer regardless of financial complexity.

The Former Simplified Tax Forms

The IRS previously offered two condensed versions of the main tax form. The first was Form 1040-EZ, for filers with no dependents who were under age 65, had a taxable income below $100,000, and reported less than $1,500 in interest income. Their income could only come from sources like wages, tips, or unemployment compensation.

A more comprehensive option was Form 1040-A, which functioned as a middle ground. It was also for those with taxable income under $100,000 who did not itemize deductions. However, the 1040-A allowed filers to claim dependents and certain tax credits and deductions, like those for educator expenses or student loan interest.

The Current Form 1040 Structure

The current Form 1040 uses a “building block” approach, where a central form is supplemented by additional schedules as needed. This structure means that taxpayers with simple returns only need to complete the main two-page form. The form was condensed by moving many lines that don’t apply to all filers onto separate, numbered schedules.

Taxpayers with more complex finances attach specific schedules to their main Form 1040. For instance, Schedule 1 is used to report additional income, such as capital gains, and to claim certain deductions like student loan interest. Schedule 2 is used to report other taxes, such as the Alternative Minimum Tax, while Schedule 3 is for claiming various nonrefundable tax credits, like education credits.

Qualifying for a Simple Tax Filing

In the current system, a “simple” tax filing is defined by the taxpayer’s financial situation. A person with a simple return has income only from wages reported on a Form W-2 and perhaps a small amount of interest income. These filers do not have circumstances that require them to file the additional numbered schedules and they take the standard deduction instead of itemizing.

The Bipartisan Budget Act of 2018 mandated the creation of Form 1040-SR, U.S. Tax Return for Seniors. Introduced for the 2019 tax year, this form is an optional alternative for taxpayers aged 65 or older. It is functionally identical to the standard Form 1040 and uses the same schedules, but its design features a larger font and includes a standard deduction chart on the form for easier use.