Statistics Script

Search This Blog

Tuesday, February 14, 2012

IRS Form Changes For Individuals

Individual Form Changes

New Form 8949, Sales and Other Dispositions of Capital Assets, supplements Schedule D as the means of reporting capital gains and losses for many situations. Schedule D has not disappeared, however, and must be filed along with Form 8949 in many cases (for example, to report a gain or loss from a partnership, S corporation, estate or trust). But much of what had been reported on the old Schedule D now goes on Form 8949.

“The IRS recognizes that the changes to Schedule D and Form 8949 are causing a lot of anxiety,” Langley responded. He assured taxpayers that the forms had been tested, however.

Foreign financial assets. Certain filers must now report their foreign financial assets on Form 8938, Statement of Foreign Financial Assets. This development is in addition to the requirement that certain taxpayers file the FBAR form, Report of Foreign Bank and Financial Accounts, which has been in place for several years.

Schedules L and M. In 2012, individuals will not need to file Schedule L, Standard Deduction for Certain Filers, the form on which the standard deduction was formerly calculated. For 2011, the amount of the deduction ($5,800 for single filers, $11,600 for married joint filers) is now located on the left margin of Form 1040, near the line where the deduction is entered. For those who still need to calculate their deduction, the amount can be found in the Form 1040 instructions.

Schedule M, Making Work Pay Credit, is also gone. The 2-percentage-point decrease in employee-side payroll taxes was designed to replace this credit.

No comments: