Postcard Size Form 1040 for 2018 - What?

Front:

Back:

For many years, some lawmakers and others touted a postcard size tax return as an indication that tax simplification had been achieved. Professors Hall and Rabushka had one on the cover of their flat tax book released in 1985 (flat tax first proposed in a Wall Street Journal op ed in 1981). Their brief return was truly simple because the flat tax only included a few items in income and only allowed a standard deduction and personal exemption. But you'll see that there was no place to sign.

Leading up to the Tax Cuts and Jobs Act (PL 115-97; 12/22/17), a postcard size return was touted by President Trump, Speaker Ryan and others.

Well, this past week, Treasury and IRS released a postcard size Form 1040:

• IR-2018-146 (6/29/18)
• Treasury

Observations:

• Unlike a postcard, the form will need to be sent in an envelope since it is 2-sided with tax information and there is no room for the sender's address. Also, you'll likely want to include your address and not want the world to see your Social Security Number on the card.
• I asked my graduate students the other day how many had ever sent or received a postcard - about 21% had.  Postcards are really a thing of the 20th and 19th century.
• Today, about 80% of returns are e-filed (ETAAC 2018 report, page 6).
• Most returns are filed via software where it really doesn't matter how many lines are on the return. In fact, software would make it possible to produce a return that only shows the lines you needed. 
• The postcard lists more than five schedules and there might also be one for the Section 199A Qualified Business Income Deduction. The schedules and attachments:
• • More than 2 dependents
  • Schedule 1 – add’l income and adj to income
  • Schedule A if itemize
  • Section 199A deduction – line on page 2; still waiting to learn if there is a form or worksheet for it
  • Schedule 2 - Tax if have net capital gains
  • Schedule 3 – Credits other than Child and dependent
  • Schedule 4 – other taxes
  • Schedule 5 – other payments orrefundable credits
• Will there also be postcards for 1040EZ and 1040A?

What do you think?



source http://21stcenturytaxation.blogspot.com/2018/07/postcard-size-form-1040-for-2018-what.html