New income tax forms were supposed to be simplified

On Behalf of | Jun 30, 2018 | Income Tax

In 2017, Congress promised a simplified tax-filing process. Instead of multiple pages to fill out, the average person — whether he or she lives in Connecticut or elsewhere — would have one small form to complete and send to the Internal Revenue Service. Well, the new income tax forms do not appear to be any easier than the previous ones.

The 1040 form has been changed quite a bit. It is still the main document one must complete and file. Some of what was removed from the form was placed on documents called schedules. This means more paperwork for some individuals, not less, and it is certainly not simplified.

Who will have to fill out all the extra schedule documents? Anyone who itemizes deductions, is self-employed, has student loans, has received tax refunds or benefits from the alternative minimum tax would have to file separate schedule sheets for each issue. All this extra paperwork means tax preparation costs are likely to increase. Only those individuals who make less than $66,000 during a calendar year have the ability to file their taxes for free.

Moving certain line items to separate schedule pages is likely to result in income tax filing errors. This means there will be more people needing to amend their returns or possibly having to deal with audits. Connecticut residents who need help understanding the new tax forms or who end up making mistakes on them and find themselves facing consequences because of it can turn to an experienced tax attorney for help.