WHAT’S NEW FOR THE 2014 FORM 1040?

This post is not concerned with the various annual inflation adjustments to deductions and credits that are reported on Form 1040.  You can find that information here.  What I want to talk about is the physical changes to the actual 1040 form.

Except, of course, for the identification of the year, Page 1 of the 2014 Form 1040 is exactly the same as Page 1 of the 2013 Form 1040.  Both 1040s have the same 37 lines.

What changes there are appear on Page 2.  The 2014 Form 1040 has a total of 79 lines, as opposed to the 77 on the 2013 Form 1040.

Line 46 of the 2014 version is where you would report any “Excess advance premium tax credit” from new Form 8962. 

If your actual 2014 income was more than the 2014 estimated income used to determine the advance payments of the Affordable Care Act created Premium Tax Credit that were applied to the monthly health insurance premiums for coverage you purchased through the ACA Marketplace, the advance payments may have been more than the credit to which you are entitled.  If this is the case you must pay back the excess credit.  You enter the excess credit amount on Line  46.  An entry on this line will increase your total tax liability.

Line 61 of the 2014 Form 1040 is where you indicate whether or not you had ACA-compliant “Full-year coverage” (if you did you would check the box), and where you would report any “individual responsibility” penalty for not being properly covered.  An entry on this line will increase your total tax liability.

Line 69 of the 2014 return is where you would report any additional “net premium tax credit” to which you are entitled, also from Form 8962. 

If the credit to which you are entitled based on actual 2014 income is more than the advance payments received during the year you can claim the additional amount of the credit.  This credit is refundable.  Like the Earned Income Credit, the Premium Tax Credit, net any advance payments, is treated like additional tax withholding.  An entry on this line will reduce the amount due to Uncle Sam or increase your refund.  

Although there are 3 new lines for 2014, there are, as I explained above, only 2 new lines on the actual return.  Line 67 on the 2013 Form 1040 was identified as “Reserved” and was not used.  The instructions for the 2013 Form 1040 said of Line 67 - 

“This line has been reserved for future use”.

As of this writing the 2014 Form NJ-1040 has not yet been posted to the NJ Division of Taxation website.

And as for New York state returns, the NY State website tells us -

“The following forms for tax year 2014 will not be available until late January:

• IT-201, Resident Income Tax Return (instructions)

• IT-203, Nonresident and Part-Year Resident Income Tax Return (instructions)

• IT-214, Claim for Real Property Tax Credit (instructions)

• NYC-208, Claim for New York City Enhanced Real Property Tax Credit - For Homeowners and Renters (instructions)

• NYC-210, Claim for New York City School Tax Credit (instructions)

• IT-201-X, Amended Resident Income Tax Return (instructions)

• IT-203-X, Amended Nonresident and Part-Year Resident Income Tax Return (instructions)”

This Saturday I will be attending the annual “Famous State Tax Seminar” offered each January by the NJ chapter of NATP.  I will post my “review” of this seminar, and any new items of interest, here next week.

TTFN