July 20, 1994
IRS Releases Advance 1994 Tax Forms
WASHINGTON - The Internal Revenue Service today released
advance proof copies of the most widely-used 1994 tax forms for individuals. For the most
part of the forms resemble those form last year, but there are a few changes. The changes
are the result of new tax laws and IRS' efforts to simplify the forms.
The newest addition to this year's family of forms if Form 2106-EZ, Unreimbursed
Employee Business Expenses. Simpler and shorter than the standard Form 2106, the new
12-line form should reduce burden for an estimated 3 million taxpayers.
The most substantial changes involve the earned income credit (EIC). A series of
"yes" or "no" questions in the instructions help taxpayers determine
if they can take the credit. Those who can claim the credit can use a worksheet, also in
the instructions, to actually figure the amount of the credit which finally goes on the
returns. For 1994 taxpayers would use Schedule EIC only to report information about
Because the EIC has been expanded to cover certain taxpayers without children, the
1040EZ form has new lines to let eligible 1040EZ filers claim the credit. Approximately
2,6 million taxpayers can not claim the EIC on the EZ form.
Some earned income is not subject to tax but is significant in figuring EIC correctly.
To assure taxpayers get the proper amount of EIC available to them, all returns have entry
spaces for reporting nontaxable earned income. Nontaxable earned income includes items
like military and clergy housing allowances and voluntary salary deferrals, such as those
to a 401(k) plan.
Recent tax law changes have modified the moving expense deduction. In past years only
taxpayers who itemized their deductions could claim moving expenses. For 1994 taxpayers
who incurred moving expenses after 1993 can claim them as an adjustment to income on Form
1040. Expenses incurred before 1994 go on Schedule A as an itemized deduction. The new law
also limits the types of moving expenses taxpayers can deduct. Form 3903, Moving Expenses,
and Form 4782, Employee Moving Expense Information, reflect these new rules.
Schedule A has a new line for personal property taxes and another for tax preparation
fees. One-third of all Schedule A filers--about 10 million taxpayers--use each of these
A revision of the charitable contribution Schedule A alerts taxpayers to the new
substantiation requirement for donations for $250 or more. Recent legislation requires
taxpayers to get written acknowledgement from the charitable organizations for each
donation of $250 or more. This rule applies to both cash and non-cash gifts.
For several year IRS has issued advance proofs of the most common forms for individuals
to give the tax community and the public opportunity for comments or suggestions on how to
improve or simplify the forms. IRS gives each comment and suggestion careful consideration
before issuing the final version later on.
For copies of the forms package, Publication 1407, write to IRS, P.O. Box 25866,
Richmond, VA, 23289-5866.
Previous | Next
1994 IRS News Releases | News Releases Main | Home