Friday, August 5, 2022

2022 DRAFT 1040


The Internal Revenue Service has released, early this year, the draft versions of the 2022 Form 1040 and accompanying schedules.  Click here.  The draft 2022 Form 1040-SR has not yet been released.

The 2022 Schedule A appears to be exactly the same as the 2021 Schedule A.  I haven’t reviewed the other 1040 schedules (and have no real desire to do so at this point). 

But there have been several changes to the Form 1040 –

* The virtual currency question has been refined for those involved with BitCoin and other “virtual” or “digital” investments.

* While the amount of content on each page has expanded the 1040 still does not completely cover a normal 8½ x 11 page (as the pages of the 1040-SR do).  God only knows why.

* Line 1 to report wages, salaries, tips, etc, from Form W-2 has expanded, for some unknown reason, to 10 “sub-lines” to separately report a multitude of obscure wage-based income items.  If separate identification was needed why is it not added to Schedule 1?  These new lines are a waste of 1040 space and only add to taxpayer confusion.

* A Line 6c under the reporting of Social Security benefits has been added as a checkbox to indicate the taxpayer is making a “lump sum election” for Social Security reporting.

* The line – 12b last year – for claiming the “non-itemizer” charitable deduction has been removed since this deduction has expired and is not available for 2022. 

* The sub-lines for Line 27, where the Earned Income Credit is claimed, have been eliminated as the special considerations applicable on the 2021 return that necessitated these additional sub-lines have expired and are not available for 2022. 

* Line 30 – used in 2021 for the Recovery Rebate Credit – remains on the 2022 Form 1040 identified as “Reserved for future use”.

The final Form 1040 may be different from this initial draft version – which represents tax law in existence as of this writing.  Who know if Congress will, as they often do, FU things by passing retroactive tax legislation late in the year?


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