topic Completing Schedule J in Business & farm

Completing Schedule J

sjhomey — Wed, 15 Jan 2020 15:34:49 GMT

I am currently preparing my 2019 tax forms. Turbo tax requires base year information, from previous years to complete the Sch J worksheet including 'deduction for exemptions'. The problem is that my 2018 1040 has no line 42 ('deduction for exemptions') as the 2016 & 2017 1040 forms do. The 1040 forms changed in 2018 but the Turbo Tax directions do not reflect that change. Line 42 on the older forms is titled exemptions. What is the corresponding line on the 2018 1040 form? From what line on the 2018 1040 form do I take the 'deduction for exemptions' required on the worksheet?

Re: Completing Schedule J

Carl — Wed, 15 Jan 2020 18:24:24 GMT

@TurboTaxSree flagging you on this. Line 42 does exist on the 2018 form SCH 2. However, it's marked as "reserved". So need guidance on this one.

Re: Completing Schedule J

DawnC — Wed, 15 Jan 2020 21:26:47 GMT

There was no deduction for exemptions for tax year 2018, so there is no corresponding line number on the 2018 version of Form 1040. You can enter 0 into the Schedule J worksheet where it asks for your 2018 deduction for exemptions, if leaving it blank does not work.

There were many changes to the 2018 tax laws and forms. One key change was the increase of the standard deduction coupled with the elimination of dependent exemptions. This link explains more about Tax Reform - Tax Reform Basics for Individuals and Families.