This change is a step in the right direction to have the question actually match potential reporting events on the current- year tax return, since the disposition of virtual currency is more likely to be a reportable event than the acquisition of virtual currency.Ĭhanges on page 2 of the 2021 Form 1040 are where one begins to see the theme of the 2021 changes.

The question on the 2021 return is as follows: 'At any time during 2021, did you receive, sell, exchange or otherwise dispose of any financial interest in any virtual currency?' (emphasis added). In 2020, the question was as follows: 'At any time during 2020, did you receive, sell, send, exchange, or otherwise acquire any financial interest in any virtual currency?' (emphasis added). The first change on the 2021 Form 1040 is the wording on the virtual currency question. Individual Income Tax Return, (available at and related schedules to help practitioners prepare for next busy season. This item looks at some of the changes on the 2021 draft Form 1040, U.S. Well, the IRS may never go back to the old form, but some of the changes this year should make the return easier to review. Everyone should remember the 2018 'postcard' that was multiple pages that wasted paper when printing and made reviewing much harder for those who 'knew where things should show up' on a tax return. Some changes are more significant than others, some make tax return preparation and review simpler, and some make it harder. Do not staple or otherwise attach the check to your Form 1040-X.Tax forms change every year. Make a payment (electronically or by check) for the difference to avoid interest and penalties. You'll have to reimburse the IRS if you received a larger refund from your original tax return than you should have.

Calculations for your refund or the amount you owe the IRS go on lines 18 through 23 on the first page of Form 1040-X.This is the appropriate section if you initially entered a wrong Social Security number for one of them, if you want to drop one or more dependents, or if you want to add one or more. Enter corrected information about your dependents in Part I on page 2, lines 24 through 30.This information is entered under 'Payments,' lines 12 through 17, because credits effectively act as payment of any tax obligation you owe. You can claim additional tax credits that you missed when you filed your original return on page 1 as well, or remove tax credits mistakenly taken or recalculate the amount of the credits.Make changes to your reported income and to tax deductions you claimed on page 1, lines 1 through 5, 'Income and Deductions.' You can amend your standard deduction or itemized deductions here.Indicate the tax year of the return you're amending at the top of the first page of Form 1040-X.

Changes to your 2020 form 1040