The Internal Revenue Service Form 1040-SR is a version of the 1040 tax return specifically created for use by seniors aged 65 and older.
How does Form 1040-SR work?
Form 1040-SR was first proposed in 2013 as part of the Vereinigte Seniorensteuervereinfachung Act. It received support from many organizations, but it did not gain Senate approval at that time.
However, on February 9, 2018, the Bipartisan Budget Act (BBA) was signed into law by President Donald Trump. The BBA required the IRS to create and publish a tax return for seniors, and Form 1040-SR was introduced.
Who uses Form 1040-SR?
Taxpayers who are 65 years old or older on January 2 can use Form 1040-SR to file their annual taxes for the previous tax year.
Filers do not have to be retired to qualify for using this form. Only one spouse must meet the age requirement if you are married and filing jointly.
Filers are not required to use this form; anyone can still use the standard Form 1040.
Where can you get Form 1040-SR?
Seniors can access Form 1040-SR in two ways. The IRS provides a digital version of the form on its website. You can complete it and then save it on your computer and print it out.
You can also access the form through reputable tax software providers if you are using one to prepare your return.
How to read and fill out Form 1040-SR?
You may not realize at first glance that you are looking at Form 1040-SR instead of the standard Form 1040. Many of the lines and sections are similar. Personal information is entered at the top of the first page, such as name, address, Social Security number, and filing status.
That is followed by a section where you need to indicate whether anyone else can claim you or your spouse as a dependent, which is where you check the appropriate box to indicate you were born before January 2, 1958.
The next section asks you to specify any dependents you are claiming by name, Social Security number, and relationship to you.
After that, you need to report your various income sources on lines 1 through 8, such as wages, salaries, profits, interests, and various retirement benefits, including Social Security. Add them all together and enter the total on line 9.
Line 10 is where you write your adjustments to income, which you will need to calculate using Schedule 1, the form for additional income and adjustments to income.
The second page of Form 1040-SR is also where you claim your standard deduction or total itemized deductions as calculated on Schedule A. Schedule A must also be submitted with your tax return if you are itemizing deductions.
You can also claim tax credits like the Child Tax Credit, Credit for Other Dependents, Earned Income Credit, and others on Form 1040-SR. You may also need to complete and submit some additional schedules.
One of the main features of Form 1040-SR is the larger font size, designed for easy reading.
Your refund or any taxes owed are calculated on page 3. Page 4 of Form 1040-SR is where you can find information about the standard deduction applicable to seniors. This table corresponds with the section on the standard deduction on page 1.
Can Form 1040-SR be filed online?
Form 1040-SR can be filed electronically, just like Form 1040. The IRS recommends filing your tax return electronically, as paper submissions may take longer to process. If your adjusted gross income is below a certain amount, you can use the free tax filing software provided on the IRS website.
Where
Can Form 1040-SR be submitted by mail?
If you prefer not to file your tax return electronically, the mailing address for sending your complete Form 1040-SR tax return depends on the state you live in and whether you are including a payment. The IRS provides a list of addresses for each state on its website.
Benefits of Form 1040-SR
Many seniors were forced to file the more complex Form 1040 in past years simply because of the nature of their retirement income. The IRS provided Form 1040-EZ until 2017 to simplify the process, but this form limited gross income to $100,000 and interest income to $1,500 annually. The 1040-EZ was discontinued in 2018 when the IRS redesigned the standard Form 1040 for tax filing. Even seniors who qualified for the 1040-EZ income requirements no longer had this option.
Form 1040-SR does not place limits on interest income, dividends, or capital gains, nor does it limit gross income.
Frequently Asked Questions (FAQs)
How can I fill out Form 1040-SR?
You can fill out Form 1040-SR just like you would any other tax return for the year. You should enter your information line by line to report income, taxes, payments, credits, deductions, and more to understand if you will receive a refund or owe taxes.
Where should I send Form 1040-SR?
Form 1040-SR should be sent to the IRS by tax day in April. You can submit it electronically or you can send it by mail. You can use tax software to file the form, or you can work with an accountant or tax expert.
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Sources:
Congress.gov. “H.R.38 – Seniors’ Tax Simplification Act of 2013.”
Congress.gov. “H.R.1892 – Bipartisan Budget Act of 2018.”
IRS. “Form 1040-SR U.S. Tax Return for Seniors.”
IRS. “New Form 1040-SR, Alternative Filing Option Available for Seniors.”
IRS. “How To File.”
IRS. “Free File: Do Your Federal Taxes for Free.”
IRS. “2017 Form 1040EZ.”
IRS. “All Taxpayers Will File Using 2018 Form 1040; Forms 1040A and 1040EZ No Longer Available.”
Source: https://www.thebalancemoney.com/1040-sr-tax-form-seniors-4165749
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