234 Tax Season Kicks Off Have You Seen the Form 1040

As taxpayers and tax preparers are preparing for the January 29, 2018 kickoff of the 2017 tax return tax preparation season, taxpayers and tax preparers will notice some changes to the final Form 1040. Line 34 in prior years was the “Tuition and Fees” deduction against taxable income. This year taxpayers and tax preparers will notice that the line now is “Reserve for future use” after Congress didn’t extended the Tuition and Fees deduction that expired on December 31, 2016. 2017 Schedule A’s medical deduction floor is 7.5% for all taxpayers. For example, if a taxpayer is earning $50,000 and has $5,000 in medical expenses, then $1,250 is the medical expense itemized deduction ($50,000 x .075 = $3,750, $5,000 - $3,750 = $1,250). The 2017 personal exemption is $4,050 for each dependent. The passthrough deduction is available for 2017. Taxpayers will still need to report their healthcare coverage on their 2017 tax return. The W-2 box 9 includes a sixteen (16) digit verification code to combat identity theft. Taxpayers will need to include the verification code on the tax return if it listed in box 9. The standard deduction is $6,350 (single taxpayers and married filing separately), $12,700 (married and surviving spouse), $9,350 (head of household). There is an $1,250 additional deduction if the taxpayer(s) is blind or aged. An additional $1,500 if the taxpayer is aged, blind, and single and not a surviving spouse.