Yesterday, I picked up a copy of the very first income tax form: the 1913 Form 1040. It’s four pages (including instructions). We’re going to display it in our office.
Back in 2018 (during the first Trump Administration), the IRS bragged about how the new tax forms were basically postcards! Well, that was a lie then and is even more of a lie today.
The IRS has begun releasing draft tax forms for 2026. With the OBBBA, there are a lot of changes. For example, gambling losses are limited to 90% of what’s incurred. I was curious to see how the IRS will handle this on the tax form.
The IRS has done what they did with Schedule 1: expanded the form. Years ago, items of “Other Income” were simply reported on line 21 of Form 1040; today, they’re broken out onto Schedule 1. The draft Schedule A is now two pages and features a number of ‘check-boxes.’ Other Itemized Deductions are now broken out, and the IRS changed the language on gambling losses to “Deductible gambling losses.” They also added a box so they can check to see if you’re a professional gambler (an issue the IRS computers have a problem with). (See below for a picture of the form.)
Do note that this is a draft form, and things can (and likely will) change. Still, if you (like me) long for tax simplification, Waiting for Godot might take less time!
