IRS Form: Draft Form 1040 Instructions (IRC §1)

Draft instructions to Form 1040, U.S. Individual Income Tax Return, and Form 1040-SR, U.S. Tax Return for Seniors, and for Schedules 1 through 3 released October 23. The instructions note that economic impact payments (EIPs) received during 2020 is not taxable but does reduce the recovery rebate credit, which is based on 2020 information rather than 2019 that the EIPs issued during 2020 were based. Estimated tax payments are reported on Line 26 rather than Schedule 3, the draft instructions note. An above-the-line $300 charitable contribution deduction is available for taxpayers who don’t itemize. New Schedule LEP allows ...