Instead of filling two pages, the new version will need about one, according to a draft released on Friday. (The page is halved and is double-sided.)
Finance Minister Steven Mnuchin said he made a pledge to simplify the tax return process and provide a simple postcard-sized tax form.
It will replace the old 1040, as well as the 1040A and 1040EZ, which were shorter forms used by Americans with simpler tax situations. All taxpayers will use the new 1040 to raise their taxes from next year.
The new form has 23 lines, less than 79 lines. This abolishes rows for certain types of income, such as maintenance payments, capital gains, and rental properties. Taxpayers who have earned this type of income must complete an additional form. Some other lines, such as the deduction for education expenditure and the interest deduction for student loans, have also been moved to another form.
"What they have essentially done is rearranging the lines with many additional schedules," said Joe Rosenberg, senior research associate at the Tax Policy Center, a nonpartisan think tank.
He said that the vast majority of taxpayers might not even notice a difference with the new form.
More than 90% of filers use software or a tax accountant to deposit their taxes, filling out the forms for them.
"The shape is more of a gimmick," Rosenberg said.
The IRS said it will seek contributions from the tax community and complete the new version of the 1