The 2019 Form 1040 follows the basic framework of the 2018 Form 1040 but includes some important changes.
Schedules 1-6
The first page of the 2019 Form 1040 includes the reporting and calculation of taxable income and the second page includes the calculation of tax and tax credits. The number of supplemental schedules used for these calculations has been reduced from six to three. The information from Schedule 6 is now included in the main form and the other schedules have been combined as follows.
- Schedule 1 –Additional income and adjustments to gross income. (This schedule includes new lines for alimony payments. For divorce decrees executed after 12/31/18, alimony payments are not included in income by the recipient and are not deductible from income by the payor.)
- Schedule 2 –Additional taxes (combines Schedules 2 and 4); and
- Schedule 3 –Additional credits and payments (combines Schedules 3 and 5)
Tax Rates and Brackets
Capital Gains Rates
Long-term capital gains are taxed using different brackets and rates than ordinary income per the chart below.
Standard Deduction
The standard deduction for single filers will increase by $200 and by $400 for married couples filing jointly.
Section 199A Deduction
The qualified business income deduction is a 20 percent deduction for pass-through businesses of up to $160,700 of qualified business income for unmarried taxpayers and $321,400 for married taxpayers.
Earned Income Tax Credit and Child Tax Credit
For 2019, the maximum Earned Income Tax Credit is $6,557 for married taxpayers filing jointly who have three or more qualifying children.
The child tax credit is not adjusted for inflation and remains $2,000 per qualifying child for 2019.
Schedules A-F
Schedule A
The adjusted gross income (AGI) threshold for deducting medical and dental expenses has increased from 7.5%to 10% for all taxpayers.
The 2019 standard mileage rate for medically-related use of an auto increased to 20¢ per mile.
Schedule B
Interest on Series EE U.S. savings bonds issued in ’89 becomes taxable in 2019.
The exclusion for education-related savings bond interest phases out at modified AGI above $81,100 ($121,600 on a joint return).
Schedule C
The 2019 standard mileage rate for business travel is 58¢ per mile.
Schedule D
A new checkbox has been added to the top of Schedule D. Taxpayers who disposed of any investment in a qualified opportunity fund (QOF) during 2019 must check this box and attach Form 8949, Sales and other Dispositions of Capital Assets.
Schedule E
The 2019 standard mileage rate for miles driven in connection with the taxpayer’s rental activities is 58¢ per mile.
Schedule F
The 2019 standard mileage rate for business travel is 58¢ per mile.
New Form 1040SR
The IRS has also issued a new Form 1040SR. This form is intended for individuals who are age 65 or older by the end of the year. Form 1040SR has larger font sizes and no color contrasts to make it easier to read. It also includes information on the additional standard deduction for individuals age 65 or older.