The Bipartisan Budget Act signed into law by President Donald Trump in February 2018 required that the IRS publish a simple form for senior citizens. Thus came this new Form 1040-SR exclusively for senior citizens which is similar to the 1040-EZ in several ways .
What is special about Form 1040-SR?
The biggest specialty is that it is much simpler than Form 1040. There are no income limits or restrictions on the kinds of income that can be reported on the form.
This form 1040-SR does not allow itemized deduction , so a senior citizen must take the standard deduction. This is not a bad idea because under new tax rate for 2019 , the standard deduction has been doubled . The standard deduction for the 2019 tax year are as under:
- $12,200 for individuals,
- $18,350 for heads of household, and
- $24,400 for married couples filing jointly and surviving spouses.
- For 2019, the additional standard deduction amount for seniors or the blind is $1,300. The additional standard deduction amount increases to $1,650 for unmarried taxpayers.
IRS Form 1040SR lets you include several types of income in addition to those allowed by 1040EZ .
Who can not use Form 1040-SR
- You need to be 65 Years old as on 31st December . Filers do not have to be retired yet to qualify. So if you are not 65 , you can not use the Form 1040-SR.
- Those who have Social Security income, pension income, or other forms of retirement income can’t use Form 1040-SR because Form 1040-EZ doesn’t include Social Security and pension income, they can’t use that, either.
No Income Limit for Use of 1040R
Form 1040SR has no limit on the amount of your total income for a given taxable year. This is unlike Form 1040EZ, which limits interest income to $1,500 and total income to $100,000 or less
Have you read five points on senior citizen tax help.