Washington, D.C. - Seniors will be able to use a simplified tax form when they file their 2005 tax returns, if the bill backed by Congressman Brady and passed by the U.S. House of Representatives today is enacted.  The House passed H.R. 4109, the Simple Tax for Seniors Act, today by a vote of 418-0.

 

Congressman Kevin Brady (R-The Woodlands), a member of the tax writing  House Ways and Means Committee, has long felt that the current income tax system is over complicated and burdensome. 

 

The bill passed today requires the Internal Revenue Service (IRS) to offer a simplified tax form for seniors, similar to Form 1040EZ.  The form would be designated “Form 1040S,” and it would be available for use in filing 2005 returns. 

 

“This is common-sense legislation,” said Brady.  “This bill will enable seniors to file in less time, on a simple form tailored for use by seniors.”

 

Under current law, more than 35 million individuals cannot use the 1040EZ simply because they are 65 or older, or because they collect Social Security or other retirement income.  The bill would allow itemized filing for seniors who receive retirement income. 

Finally, the IRS is instructed not to establish an income threshold for use of the form so that seniors with income in excess of $50,000 - - the current threshold for Form 1040EZ - - will be permitted to use the simplified form. 

 

The IRS estimates that as many as 11 million seniors will be eligible to use the new form in the first year it is made available.