Tax reform not as advertised

Welcome to tax season! Wait until you try that “simple” new “postcard” Form 1040. It has six new schedules to cover the parts that were cut out of the old 1040 so it would fit onto a postcard. And it comes with complicated instructions and worksheets.

The simple 1040A or 1040EZ forms that you might have been comfortable with are no longer even available.

You get a bigger standard deduction, but there’s no deduction for exemptions. Some people will get a tax cut while others will pay more. And since the new withholding rules don’t adequately address many situations, the tax cut you think you see on your paycheck could mean a smaller refund, or you may owe more taxes.

The expanded (and complicated) child tax credit might make up for losing the exemptions for children and other dependents, but it might not. And available itemized deductions are much more limited. The forms, worksheets and instructions for dealing with the earned income credit, the kiddie tax, and most kinds of investment and rental income continue to be complex. And for many small businesses, taxes will become much more complicated.

Individual rates are a little lower, but the big rate cut went to corporations. The Republican “tax reform” provides big tax-saving opportunities for corporations, other businesses and wealthy individuals; not so much for ordinary working people.

Tax filing will be less complicated for some, but the system has become more complex. For most, coping with it will continue to be unpleasant, even with the “simple” new 1040.

David Roberts, Chicago