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IRS Introduces New Tax Filing Form Specifically for Senior Citizens by Angie Adames, CPA

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Posted on October 02, 2019 by Angie Adames

Taxpayers age 65 and older by the end of 2019 will have a new option for filing their federal tax returns come April of 2020.

As mandated by the Bipartisan Budget Act of 2018, the IRS has released a draft of Form 1040-SR, U.S. Tax Return for Seniors, which features larger font size for easier reading and requests information that is specific to senior citizen taxpayers. For example, the two-page Form 1040-SR features specific lines for taxpayers to list all of their sources of retirement income, such as Social Security benefits and pension, 401(k) and IRA distributions, and it includes lines for taxpayers to list capital gains and losses and available tax credits, which were previously on the schedules that taxpayers’ would submit as supplements to their tax returns.

In addition, the new form includes a chart of standard deductions for which taxpayers may qualify based on their filing status as well as additional deductions for taxpayers age 65 and older and for taxpayers who are blind. For 2019, the standard deduction is $12,200 for individuals and $24,400 for married couples filing jointly and surviving spouses, with an additional deduction of $1,300 for taxpayers who are blind and/or were born before Jan. 2, 1955. As a result, Form 1040-SR will include all of the information taxpayers need to maximize the deductions to which they are entitled.

With the new tax law’s reduction and/or elimination of many itemized deductions and the increase in the standard deduction, it appears that Form 1040-SR will make it simpler for seniors with retirement and investment income who no longer itemize their deductions to file their 2019 federal income tax returns. Taxpayers age 65 and older still have the option to file using Form 1040, when it is favorable for them to do so.

About the Author: Angie Adames, CPA, is an associate director of Tax Services with Berkowitz Pollack Brant Advisors + CPAs, where she provides tax and consulting services to real estate companies, manufacturers and closely held business. She can be reached at the firm’s Miami office at (305) 379-7000 or info@bpbcpa.com.