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2018 Tax Filing Season

2018 Tax Filing Season

Old Jan 8th 2019, 5:18 pm
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Default 2018 Tax Filing Season

I was aware of the Tax Reform legislation earlier in 2018, but I didn't spend any time researching what it would mean for tax filing, until this morning. The Form 1040 has been completely redesigned, it is much shorter than it was for 2017 and earlier. There's no longer a 1040EZ or 1040A, everyone will submit the 1040. The consequence of making the 1040 shorter, however, is that now there are a number of additional schedules associated with the 1040, one or more of which all filers will now have to fill out! Some of these schedules look like they're not really ready for prime time, 1040 Schedule 5, for instance, is pretty short and most of its lines are labelled "reserved." Seems to be a bit of a sham reform, the administration promised a postcard sized 1040, so they made it shorter - at the cost of the taxpayer having to fill in additional schedules! Fortunately, the lettered schedules remain unchanged, 1040 Schedule B for interest & dividends for instance.

According to one article I read, 89% of taxpayers use a proprietary online preparer, so they may not even be aware of the changes.
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Old Jan 8th 2019, 5:34 pm
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Default Re: 2018 Tax Filing Season

We use Turbotax but do cross check the paperwork forms against the previous year as a sort of sanity check. In preliminary work so far that comparison has proven not straightforward. Doable, but messed up a bit.

But it's tax return forms - surely no-one really expected them to be simpler
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Old Jan 8th 2019, 5:42 pm
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Default Re: 2018 Tax Filing Season

The fun time of the year!

I do personal/business taxes in TT.
I have to pay estimated taxes via a 1040-ES.
I'll wait until nearer tax day as I suspect TT will provide several updates before then.
I usually do a brief cross check against the 1040 but nothing detailed.

(Incidentally, I did underpay by a significant amount years ago when I started my business, normally comes with fines/penalties, but they have a get-out-of-jail card if you've never been in trouble before.)
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Old Jan 8th 2019, 5:48 pm
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Default Re: 2018 Tax Filing Season

Turbotax user here. SImple enough.
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Old Jan 8th 2019, 7:30 pm
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Default Re: 2018 Tax Filing Season

Originally Posted by civilservant
Turbotax user here. SImple enough.
Same here and the interview process in TT is much the same but I like to understand the forms since I have foreign income to report and foreign tax credits to claim. I found all the new schedules much more confusing than the old 1040, but I’m sure I will get used to them in time, particularly once the corrected schedules are made available by the IRS and TurboTax.

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Old Jan 8th 2019, 7:47 pm
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Default Re: 2018 Tax Filing Season

I'm using TT for the first time this year. Thought with all the changes and Trump making it simpler it was time to change. Well that and the fact the CPA we have used since we got here started asking me questions last year he already knew the answers too, and contradicting what he had done in the past.
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Old Jan 8th 2019, 8:08 pm
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Default Re: 2018 Tax Filing Season

I tried using TurboTax but it isn't user friendly for Canadian retirement income. For the amount I paid to use it for 2016, I could have went with a CPA which is what we did in 2017. Definitely not looking forward to doing 2018 taxes.
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Old Jan 8th 2019, 8:13 pm
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Default Re: 2018 Tax Filing Season

I've used TaxAct the last few years. Less intuitive (pun intended...) than TurboTax, but cheaper and does the job for me given I've now filed over 30 US tax returns and am pretty familiar with the parts of the tax code that affect me. I always take a close look at what it actually spits out.

Last edited by Giantaxe; Jan 8th 2019 at 8:15 pm.
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Old Jan 8th 2019, 8:40 pm
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Default Re: 2018 Tax Filing Season

I still use the old paper and pencil method, simply because it's always going to be easier to use the same method you used last year and the year before that (etc.) Hopefully there's a fairly simple equivalence between last year's 1040, and the new 1040 plus one or more of the new numbered schedules.
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Old Jan 8th 2019, 9:01 pm
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Default Re: 2018 Tax Filing Season

We've been using software, from the year after I arrived. TaxAct for a few years, and now H&R Block for 2018 and 2019, after TaxAct's prices both got confusing and shot up.
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Old Jan 8th 2019, 9:29 pm
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Default Re: 2018 Tax Filing Season

I used TurboTax for a couple of years, 2005 and 2006 maybe, when my daughter had to file for Oklahoma, Missouri and Massachusetts state tax over the course of two years. It soon became obvious turbotax couldn't handle flyover state tax. (They were proficient with MA.) Probably they've got it under control by now...
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Old Jan 8th 2019, 9:52 pm
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Default Re: 2018 Tax Filing Season

Could you clarify about not handling flyover state tax? Normally you have a State version for the specific State...
Is it because it couldn't handle the moves very well?

Last edited by Hotscot; Jan 8th 2019 at 10:08 pm.
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Old Jan 8th 2019, 10:10 pm
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Default Re: 2018 Tax Filing Season

I hope they didn't change the forms for oversea's folks, I just finally got the hang of it all...lol

I do mine US taxes by hand, I tried a few online software but they are not really designed for those living outside the US, even the ones I tried that claimed they can, the result was still botched, way easier to do it by hand since its just straight income, no investments or anything, and income is well below having to owe anything, total waste of time really for both me and the IRS to process.
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Old Jan 8th 2019, 11:14 pm
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Default Re: 2018 Tax Filing Season

Originally Posted by Hotscot
Could you clarify about not handling flyover state tax? Normally you have a State version for the specific State...
Is it because it couldn't handle the moves very well?
At the time (this was many years ago) they obviously hadn't yet invested any effort in Oklahoma state tax. If I remember correctly, they simply offered an online version of the paper state form rather than the questionnaire format that I was familiar with for federal, NY & MA. It did the basic addition and other calculation for you but nothing else.

As for the year my daughter split between Missouri and Massachusetts, I may have ended up doing hers manually that year (2007 maybe?)

Last edited by robin1234; Jan 8th 2019 at 11:18 pm.
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Old Jan 9th 2019, 11:29 am
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Default Re: 2018 Tax Filing Season

H&R Block De Luxe version(which includes 8938) for me. Straightforward with absolutely no problems.
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