Form 1040 (Schedule A&B: Fill & Download for Free

The only true simplification of the income taxes was in raising the standard deduction so that most people would see no benefit in itemizing deductions.The “postcard” tax form was a rather ambitious goal from the start, and tax-reform advocates had really painted themselves into a corner by making such a big deal of it. So the IRS was directed to get the damn thing on a postcard, no matter what it took, so everyone could save face.“Whatever it takes” turned out to be increasing the number of supporting forms, and crowding the other entries on there in confusing and error-prone ways. It really didn’t matter anyway to most people who prepare their taxes using software, and file electronically, but it met the goal of allowing them to say truthfully that Form 1040 was now on a postcard. A really big postcard, covered on both sides, with no room for a stamp. With two or three (also postcard-sized!) extra schedules stapled to it.After much criticism and ridicule, the pro-postcard forces are quietly admitting that the original 1040 wasn’t actually all that complicated, and are slowly returning to the prior look. Oh, and they’re keeping the “supporting schedules”, so look for further “simplification” there.As a not-so-plausible positive spin on this shameful retreat, the “SR” version is designed to help seniors, with their poor eyesight, (and, insultingly, presumably their mental limitations and nostalgia for the old days.)Recent Evolution of the 1040:Let me tell you a little-known story of the degree of tax simplification we have seen lately. “Schedule D” used to have a Byzantine series of calculations on it, in which various figures were put into a blender, and out came some number that might as well have been random. Voters are presumably expected to discuss tax policy based on the details of this calculation.A few years ago, Schedule D was “simplified” by moving most of the calculation to a “worksheet” in the instruction booklet. This left Schedule D itself looking clean, simple and spacious.Schedule D, Page 2; 2003 vs 2004:With the pressure off from layout considerations, the tax code was subsequently “simplified” to the point that the worksheet now has 47 lines, a few of which have multiple steps, and three of which send you off to other worksheets.In the last round of “simplification”, in 2018, the calculation became so simple that the IRS actually made a mistake in the instructions, and nobody noticed until May 2019. Do you see it? It’s right there on line 18:No? You didn’t notice that your Collectibles and Unrecaptured Section 1250 Gain were not limited correctly according to the new tax law? Well, neither did the IRS at first — the people whose jobs revolve around forms, and math, and laws, and the duty to help taxpayers meet their obligations accurately. The solution was to add two additional lines to the worksheet, which the IRS published in May (after most tax returns had already been filed).(By the way, I generally think the IRS are a bunch of swell people, who do their best with what the legislature gives them. To their credit, they owned the mistake, and unilaterally sent refunds to the affected taxpayers.)There’s a simple reason why true tax simplification is unattainable. Any change in tax policy will result in some voter somewhere getting upset. This could lead to tragedies like implementers of policy failing to secure campaign donations, or even possibly failing to be re-elected. It is far less risky to make things more confusing (and thus, less susceptible to rational criticism). And if nothing else, you can rearrange the forms like a slacker schoolkid creatively using fonts and margins to alter the apparent size of his essay.The tax forms are confusing and complicated because they are the embodiment of a tax policy that is confusing and complicated. There’s no way around this. I’ve tried to imagine what a true “postcard” return would look like, and it always involves tossing large portions of the tax code in the trash, together with the legislators that support them.It is frustrating when people on Quora ask very reasonable questions like “What is my tax rate?”, or “How much of a refund will I get?”, or “How much should I be withholding?” And the answer is always several paragraphs of background and tedious lecture, which essentially comes down to “Fill out this long worksheet, or have your CPA figure it out”.It is especially frustrating when tax policy is discussed in the public forums, and proposals rise or fall based on myths, misunderstandings and politically-motivated deception. It’s not because people are stupid or ignorant; it’s because intelligent, rational people cannot possibly be expected to make sense of it.