New Tax Form For Seniors

The 65 and Older U.S. Population is Projected to Soon Outnumber Those Under Age 18.

Aging Demographics

We’ve all been hearing for a while now that in the not-so-distant future, older adults are projected to outnumber kids for the first time in U.S. History. Labeled “The Graying of America,” the U.S. Census Bureau projects that by 2034 people age 65 and over are expected to number 77.0 million, while children under age 18 will number 76.5 million.

We’re not saying the IRS is getting a jump on the demographic change, but they have devised a new form designed specifically for seniors: Form 1040-SR. This new form features larger print and a standard deduction chart with a goal of making it easier for older Americans to read and use.

Why Was This Form Created?

The Bipartisan Budget Act of 2018 required the IRS to create a tax form for seniors. If you are age 65 or older, you now have the option to use Form 1040-SR, U.S. Tax Return for Seniors. Form 1040-SR, when printed, features larger font and better readability.

If you electronically file Form 1040-SR, you may notice the change when you print your return.

What’s Different?

If you were born before Jan. 2, 1955, you now have the option to file Form 1040-SR whether you are working, not working, or retired. The form allows income reporting from other sources common to seniors such as:

Investment income
Social Security
Distributions from qualified retirement plans, annuities, or similar deferred-payment arrangements

Form 1040-SR is available to file your 2019 federal income tax return, which is due April 15, 2020. All lines and checkboxes on Form 1040-SR mirror the Form 1040, and both forms use all the same attached schedules and forms. The revised 2019 Instructions cover both Forms 1040 and 1040-SR.

Form 1040-SR can be used whether you plan to itemize or take the standard deduction.

If you itemize deductions, you file Form 1040-SR and attach Schedule A, Itemized Deductions, when filing a paper return.
For those taking the standard deduction, Form 1040-SR includes a chart listing the standard deduction amounts, making it easier to calculate.
- It also ensures seniors are aware of the increased standard deduction for taxpayers age 65 and older.

Married people filing a joint return can use the Form 1040-SR regardless of whether one or both spouses are age 65 or older or retired.

Both the 1040 and the 1040-SR use the same “building block” approach introduced last year that can be supplemented with additional Schedules 1, 2, and 3 as needed. Many taxpayers with basic tax situations can file Form 1040 or 1040-SR with no additional schedules.

If you are age 65 or older and want to use Form 1040-SR, contact your local tax professional if you need assistance or guidance.