The IRS has released the final versions of Form 1040 and Form 1040-SR just before Thanksgiving 2019, along with final versions of two of the three schedules that go along with the two forms.

Form 1040 is the first update of the Form 1040 since the postcard version debuted in 2018. This version no longer meets what Treasury had apparently used to define a postcard, as the 2019 version takes up more than half of each page. Good news for most CPAs is that the form now is mathematically complete—the adjustments now actually flow from Schedule 1 to a line on the front of the return.

Final version Form 1040 (2019)

The IRS also released the final version of the new version of Form 1040 designed for those over 65 (Form 1040-SR) who decide to use this form in lieu of the standard Form 1040. The form was mandated by Congress as part of the Bipartisan Budget Act of 2018 (not to be confused with the 2015 bill with the same name that gave us the revised partnership audit regime).

In the end, given the changes Treasury was making to the Form 1040 to get to the postcard and the return to a slightly larger form for 2019, the Form 1040-SR no longer seems to serve an obvious purpose. While it was meant to be a Form 1040-EZ for seniors, the IRS got rid of the Form 1040-EZ and generally reduced the lines on the Form 1040.

This resulted in the first Form 1040-SR, which Congress mandated be released for 2019 returns, has lines that are identical to those on the Form 1040. In fact, the form uses the same supporting schedules (Schedules 1, 2 and 3) as the standard Form 1040 and, despite some press reports to the contrary when the original draft was issued, allows the use of itemized deductions with the form.

So what purpose does it serve now? Honestly, the answer is not much—it exists because it legally has to exist by order of the United States Congress. But the only real differences are that it has slightly larger print and has a “cheat sheet” of standard deduction amounts at the bottom of the first page.

If a senior is preparing his/her own return by hand the larger print may make it easier to fill in the return and the cheat sheet is handy for quickly coming up with the proper standard deduction. However, even among seniors most returns are filed electronically where the big print provides no real advantage.

Note that the form can only be used by those who are 65 or over (so hopefully your bad eyesight waited until you became Medicare eligible). Most CPAs will likely only force their software to use this form for clients that might insist on it being used. Certainly, the use of this form will not simplify the preparation of a senior’s return by a tax adviser.

Final version Form 1040-SR (2019)

After taking a break for Thanksgiving, the IRS on Black Friday 2019 released two of the three schedules that go along with Forms 1040 and 1040-SR.

The 2019 version of Schedule 2 has additional taxes, including the alternative minimum tax and self-employment taxes.

Final version Form 1040/1040-SR Schedule 2

The 2019 version of Schedule 3 contains additional credits and payments, such as the foreign tax credit, dependent care credit and estimated tax payments.

Final version Form 1040/1040-SR Schedule 3

The schedule that has not yet been released is Schedule 1, which contains additional income and adjustments to income. A second draft version of this form was issued by the IRS on October 10, 2019. The IRS added a question related to virtual currency transactions on the revised Schedule 1. Presumably the IRS has to take additional time for comments on the draft Schedule 1 before it can be released in final form.