Internal Revenue Service United States Department of the Treasury
Level Basic Advanced Military International

Important Changes This Year

Tax Forms

Tax Form Changes

Form 1040 has an updated digital asset statement and new lines 1a through 1z to decrease the number of write-ins:

  • 1a Amounts from Form(s) W-2, box 1 (see instructions)
  • 1b Household employee wages not reported on Form(s) W-2
  • 1c Tip income not reported on line 1a
  • 1d Medicaid waiver payments not reported on Form(s) W-2 (see instructions)
  • 1e Taxable dependent care benefits from Form 2441, line 26
  • 1f Employer-provided adoption benefits from Form 8839, line 29
  • 1g Wages from Form 8919, line 6
  • 1h Other earned income (see instructions)
  • 1i Nontaxable combat pay election. This entry was moved from line 27b to line 1i because nontaxable combat pay can be used to figure earned income for the EIC and ACTC
  • 1z Add lines 1a through 1h
  • In addition, Line 6c is an added new line with a checkbox for taxpayers who use the lump-sum election method when figuring taxable Social Security benefits and eliminates the need for the write-in “LSE.” Amount
  • Schedule 1 (Form 1040), Additional Income and Adjustments to Income, expanded line 8 to add lines for the following entries:
    • Scholarships and fellowship grants not reported on Form W-2
    • Nontaxable amount of Medicaid waiver payments included on Form 1040, line 1a or 1d
    • Pension or annuity from a nonqualified deferred compensation plan or a nongovernmental section 457 plan
    • Certain wages from penal institutions
  • Schedule 2 (Form 1040), Additional Taxes, added a checkbox for taxpayers who are not required to file Form 5329.
  • Form W-4P is split into two forms.
  • Form W-4P, Withholding Certificate for Periodic Pension or Annuity Payments, which is to be used only for periodic pension and annuity payments that are treated similarly to wages.
  • New Form W-4R, Withholding Certificate for Nonperiodic Payments and Eligible Rollover Distributions, which is to be used only for nonperiodic payments and eligible rollover distributions.
  • The following forms and their instructions change from annual to continuous use:
    • Form 1098, Mortgage Interest Statement
    • Form 1098-Q, Qualifying Longevity Annuity Contract Information
    • Form 1099-A, Acquisition or Abandonment of Secured Property
    • Form 1099-C, Cancellation of Debt
    • Form 1099-CAP, Changes in Corporate Control and Capital Structure
    • Form 1099-DIV, Dividends and Distributions
    • Form 1099-G, Certain Government Payments
    • Form 1099-INT, Interest Income
    • Form 1099-K, Payment Card and Third Party Network Transactions
    • Form 1099-LTC, Long Term Care and Accelerated Death Benefits
    • Form 1099-OID, Original Issue Discount
    • Form 1099-Q, Payments from Qualified Education Programs (Under Sections 529 and 530)
    • Form 1099-S, Proceeds From Real Estate Transactions
    • Form 1099-SA, Distributions From an HSA, Archer MSA, or Medicare Advantage MSA

Tax Form Changes For TY2023 New Form 1099-DA, Digital Asset Proceeds from Broker Transactions, will be used to report proceeds of digital asset transactions. The form will be issued by broker exchanges to the IRS and the seller.

Form 1040.