1. One big change this year is a reduction of Form1040 schedules from six in 2018 down to three in 2019. Some schedules will be merged while some will revert to the base 1040 form.
2. Decimal places for cents are deleted from each line. Cents are useless and create clutter. Most people round dollar entries anyway and the extra room allows for larger and clearer numbers. Nice.
3. There will be a new line for capital gains on the 1040.
4. IRA distributions will get their own line separate from pensions and annuities.
5. Schedule 1 provides a new space for date of divorce to adapt the change in the tax treatment of alimony.
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Victor Santos Sy graduated Cum Laude from UE with a BBA and from Indiana State University with an MBA. Vic worked with SyCip, Gorres, Velayo (SGV – Andersen Consulting) and Ernst & Young before establishing Sy Accountancy Corporation.
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He retired after 50 years of defending taxpayers audited by the IRS, EDD, BOE and other governmental agencies. He published a book on “How to Avoid or Survive IRS Audits.” Readers may email tax questions to [email protected].