Congressman Bill Posey (R-FL) is introducing H.R. 1397, the “Seniors’ Tax Simplification Act.” This legislation simplifies the tax code for American seniors by creating a new tax form.
By including information for the most common types of income reported by seniors – interest, dividends, capital gains, Social Security benefits, pension payments, IRA distributions, wages, and unemployment compensation, this bill streamlines the process for many of the 23 million seniors who file taxes each year.
A similar form currently exist for young taxpayers – the 1040EZ—and should be utilized as a model for tax simplification. Supporting this legislation would help many Americans navigate the complicated tax system when they file.
Read the letter here or below.
May 24, 2017
The Honorable Bill Posey
United States House of Representatives
120 Cannon Hob
Washington, D.C. 20515
Dear Congressman Posey:
I write in support the “Seniors’ Tax Simplification Act,” legislation that simplifies tax filing for American seniors by creating a new tax form.
This bill would instruct the IRS to create a new form in the 1040 series designed especially for senior citizens with relatively-simple tax filing situations. The most common types of income reported by seniors would be on it—interest, dividends, capital gains, Social Security benefits, pension payments, IRA distributions, wages, and unemployment compensation.
For younger taxpayers, a similar form exists today—the 1040-EZ. It only reports wages, interest, and unemployment compensation. Any (childless) single taxpayer or married couple under age 65 making less than $100,000 is eligible to file this short form. Nearly 5 million taxpayers take advantage of this convenient form every year.
There is no reason why a similar form can’t be made available to seniors. 23 million tax returns are filed every year in households where the primary taxpayer is over age 65. Many of these taxpayers could use this form easily to make tax season less complicated.
Passage of the Seniors’ Tax Simplification Act is a common sense measure lawmakers can support to help seniors across the country. All members of Congress should have no hesitation supporting and co-sponsoring this helpful legislation.
Grover G. Norquist
President, Americans for Tax Reform