![]() Now, only a few tax credits have their own lines on Form 1040, including: The previous version of Form 1040 had a handful of lines for reporting various tax credits. Schedule 3 includes two main sections: nonrefundable credits, and other payments and refundable credits. Schedule 3 for additional credits and payments.Schedule 1 for additional income and "above the line" deductions.Initially, there were six new schedules, but the IRS has since consolidated these down to three: The redesign didn't reduce the information taxpayers need to report to the IRS - it simply moved some less common lines off of the main Form 1040 and onto a new set of schedules. Then, taxpayers with more involved returns attach extra schedules as needed. For example, instead of choosing between three different versions of Form 1040 - the original and two pared-down versions, Form 1040A and Form 1040-EZ - every taxpayer will use Form 1040. ![]() ![]() In 2018, the IRS and the Treasury Department redesigned Form 1040 with simplification as the goal. Let's take a closer look at what this form is and what it entails. One of these forms may be Form 1040 Schedule 3, which lists additional credits you might be able to claim as well as some payments that will get applied to your tax bill. Form 1040 may be the first form you think about when it's time to file a tax return, but depending on your specific tax situation, it's likely that you may have to attach one or more additional forms and schedules to your return.
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