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| House Passes New “EZ” Tax Form Choice for Seniors |
June 03, 2004 |
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Wilson-Cosponsored Bill Simplifies Filing for Many Seniors
Washington, DC – The U.S. House of Representatives approved a measure cosponsored by Congresswoman Heather Wilson that allows Americans over age 65 to be able to file federal taxes with their own version of the 1040-EZ form. The bill passed the House 418-0, and will now await Senate action.
The Simple Tax for Seniors Act creates a new short-form "1040SR" for retired seniors. Under current law, taxpayers are disqualified from using the 1040-EZ because they receive Social Security funds or other retirement income. By creating the new form, non-itemized filing is now practical for many seniors who receive retirement income.
"Simpler is better,” Wilson said. “A simple, one-page form makes sense for many seniors.”
If passed by the Senate and signed by the President, the new form would make simplified filing available to those over 62 in time for next year’s taxes.
The legislation makes no change in the tax code itself, so Americans using the new form would pay the same amount as under the standard 1040. However, seniors would be able to file in less time, on a one-page form, and without being forced to annually disclose more information on their retirement savings and pension plan than necessary to determine their proper taxes due.
Without making this change, more than 35 million Americans are prohibited from using the short form simply because they are age 65 or older. Of those, more than 15 million currently file using only the standard deduction, and would be highly likely to use the new 1040SR.
Additionally, costs at the Internal Revenue Service to handle the 1040 are 50% greater than those for the 1040EZ, so the legislation is expected to save government resources.
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