What Is Form 1040-SR: U.S. Tax Return for Seniors?
You have the option of using Form 1040-SR, the U.S. Tax Return for Seniors, rather than the standard Form 1040 when you file your taxes if you're 65 or older. It's virtually identical to Form 1040 except that it has larger type and gives greater prominence to specific benefits for taxpayers over age 65.
Form 1040 was revised and simplified and Form 1040-SR was introduced by the Bipartisan Budget Act of 2018. That act also abolished Form 1040EZ, which was designed for taxpayers with uncomplicated tax situations, and Form 1040A, which was confusingly similar to the old Form 1040. Form 1040 and Form 1040-SR are the standard forms used by taxpayers regardless of whether they itemize deductions.
Key Takeaways
- Form 1040-SR is a variation of the standard Form 1040 used by most taxpayers.
- You can use either form if you were at least age 65 as of the last day of the tax year.
- Form 1040-SR uses a larger type and gives greater prominence to tax benefits for those over age 65, particularly the additional standard deduction.
- Taxpayers who are over age 65 receive a higher standard deduction but they don't necessarily have to use Form 1040-SR to claim it.
Understanding Form 1040-SR
Form 1040-SR is designed to be easier on the eyes and to give greater prominence to tax benefits specific to taxpayers over age 65.
A higher standard deduction is available to those who don't itemize their deductions. Single taxpayers who are at least age 65 by the last day of 2023 can add $1,950 to their standard deduction when they file their 2023 tax return in 2024. Joint filers can claim an additional $1,550.
The old Form 1040EZ only allowed the reporting of income from wages, salaries, and tips. Form 1040-SR allows income from certain other sources.
Who Can File Form 1040-SR?
There are several differences between the old Form 1040EZ and 1040-SR, including age requirements and total income allowed.
Ages 65 and Older
One major difference between Forms 1040EZ and 1040-SR has to do with your age. Form 1040EZ was available to any taxpayer under the age of 65 who otherwise met income and filing requirements. You must have turned 65 or older by the end of the tax year for which you're filing to use Form 1040-SR. You can use Form 1040-SR when you file your 2023 tax return in 2024 if you were born on or before Jan. 2, 1959.
You don't have to be retired. If you're still working at age 65 and otherwise qualify to file Form 1040-SR, you may do so. But early retirees who are younger than 65 can't use this tax return.
No Income Limit
Form 1040EZ limited interest income to $1,500 and total income to $100,000 or less. Form 1040-SR has no limit on the amount of your total income for a given tax year.
Expanded Income Categories
IRS Form 1040-SR allows you to report several types of income in addition to those allowed by Form 1040EZ, including:
- Wages
- Salaries
- Tips
- Taxable scholarship or fellowship grants
- Unemployment compensation
- Alaska Permanent Fund dividends
- Social Security benefits
- Distributions from qualified retirement plans
- Annuities orsimilar deferred-payment arrangements
- Unlimited interest and dividends
- Capital gains and losses
What About Tax Deductions?
Like Form 1040, Form 1040-SR can be used regardless of whether you want to take the standard deduction or itemize your deductions.
Most Americans take the standard deduction because they virtually doubled with the Tax Cuts and Jobs Act of 2018. The additional standard deduction for taxpayers over 65 is another incentive to avoid itemizing.
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Form1040-SR is available on the IRS website.
History of Form 1040-SR
The legislation that resulted in the creation of IRS Form 1040-SR began on March 5, 2013, with the introduction of the Seniors Tax Simplification Act by Senators Marco Rubio (R-FL) and Bill Nelson (D-FL), who were joined by Senator Mike Lee (R-UT). The bill didn't pass until Form 1040-SR language was adopted in 2018 following several failed attempts to turn the act into law.
What's the Difference Between Form 1040 and 1040-SR?
Tax forms 1040 and 1040-SR are nearly identical. The main advantage of using Form 1040-SR is that it has larger type, which can make it easier to read if you're doing your taxes by hand. It also emphasizes some specific tax benefits for those over age 65, although these benefits are also included in Form 1040.
What Is the Advantage of Filing Form 1040-SR?
Form 1040-SR includes a table for specific standard deductions that make it easier to use if you're over age 65 and not itemizing your deductions.
What Is the Additional Standard Deduction for Taxpayers Over 65?
Taxpayers who are age 65 or older can take an additional standard deduction of $1,950 for single or head of household filing statuses in 2023, or $1,550 for married filing jointly or qualifying widow(er) filers. This is the return you file in 2024.
The Bottom Line
Form 1040-SR simplifies tax-filing requirements for taxpayers who are 65 or older regardless of whether they're retired. But you can't use Form 1040-SR if you're a retiree under the age of 65, even if your income sources include Social Security, pensions, and investment income. You must use Form 1040.
Despite this drawback, the introduction of Form 1040-SR and the revised Form 1040 are steps in the right direction when it comes to the simplification of tax filing requirements.
