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.
