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The New and Improved IRS 1040 for CPA in Springfield NJ
For most USA taxpayers, the newly designed 1040 form for the 2018 tax year is a welcome sight. There are now only 23 numbered lines on the new form compared to 79 for the 2017 form and it all fits on one printed page. On-line filing should prove to be simpler and take less time for the person who has one or more W2 forms and is not a business owner.
On the surface, this would seem to be bad news for CPAs like Dominick Fiorenza out of Springfield, New Jersey who earn their living helping people muddle through the tax forms before April 15th of each year. But it takes a more in-depth look at what lurks under the new and simpler 1040 form to see what really is happening.
A Closer Look
The IRS describes these changes as a “building block” approach using six schedules that determine the dollar amounts to be entered on certain lines in the new 1040. For example, Schedule 4 is called “Other Taxes” and will determine what amount is to be entered on line 14 of the new 1040.
If you go to IRS.gov you will be able to download Schedule 4 and will notice that it looks very similar to the section in the previous year’s 1040 also called “Other Taxes”. It begins with line 57 that asks for Schedule SE for self-employment task and continues line by line through question 63. The main difference is line 64 telling you to enter the amount on form 1040, line 14. In addition to the matching line numbers, the word “attach” is used four times and eight other forms are referenced in Schedule 4 as well. Much the same scenario plays out with the other schedules
If you want to have more of this “fun” look at Schedule SE (Self Employment). It begins with a convoluted flow chart that looks like an organizational structure chart for some corporation. The chart is supposed to determine if you are to use the Part A (Short Form) or Part B (Long Form) and just like Schedule 4 it refers to other forms and schedules like the dreaded K-1 (Form 2065). It is enough to make some folks wish that they made less than $400 to escape having to use the Schedule SE.
You will soon realize that the more things have changed for the simple filer it is all much the same confusing task for the business owner and other taxpayers who earn income other than what is shown on a W2 form. A CPA in Springfield NJ like Dominick will not have to worry about any lack of work as his tax clients will still face the same situation as before having to file complicated returns.
Dominick, a CPA in Springfield NJ, has helped thousands of clients with a winning attitude and an unsurpassed work ethic. When not helping people with tax disputes he also handles Payroll and Sales Tax Filing, Bookkeeping and Forensic Accounting. For a consultation call Dominick Fiorenza, CPA at 973-564-9444 at his office, 201-463-2501 for mobile or via fax at 973-564-9666. If you prefer an email to describe your tax situation, his email is firstname.lastname@example.org.