WHAT’S NEW FOR TAX YEAR 201 9
Health Care Coverage for 2019: you no longer need to either make a shared responsibility payment or file Form 8965 if you don’t have minimal essential coverage for part or all of 2019.
Tax Provisions that were set to expire at the end of 2017
have been extended for the following: Tuition & Fees
Deduction, Deduction for mortgage insurance premiums,
nonbusiness energy property credit, alternative fuel
vehicle refueling credit. If you are eligible for one or more
of these benefits for tax year 2018, you will need to file an
amended return Form 1040-X.
Lifetime Learning Credit for 2019 is gradually reduced if
your MAGI is between $58,000 and $68,000 ($116,000
and 136,000 if you file a joint return). You can’t claim
the credit if your MAGI is $68,000 or more ($136,000 or
more if you file a joint return).
The Standard Deduction for 2019 has increased for all
filers as follows $12,200 if filing single, $24,400 if
married filing jointly or qualifying widower, $12,200 if
married filing separate returns, and $18,350 if head of
household.
Student Loan Interest Deduction for 2019 is gradually
reduced if your MAGI is between $70,000 and $85,000
($140,000 and $170,000 if you file a joint return). You
can’t claim the deduction if your MAGI is $85,000 or
more ($170,000 or more if you file a joint return).
Tuition and Fees Deduction has been extended to
cover qualified education expenses paid in 2018, 2019,
and 2020.
Retirement Plan Contributions for 2019 are as follows,
the basic limit for 401K contributions is $19,000, plus
another $6,000 for those who are at least age 50. Total
contributions to all traditional and Roth IRAs cannot exceed $6,000, or for taxpayers age 50 and older, $7,000.
Saver’s Credit income limit is $64,000 for married
couples filing jointly, $48,000 for head of
household, and $32,000 for singles and married
individuals filing separately for 2019.
AMT Exemption Amount for 2019 has been increased
to $71,700 ($111,700 if married filing joint or qualifying
widower), $55,850 if married filing separately. The
income level at which the AMT exemption begins to
phase out has increased to $510,300 or $1,020,600 if
married filing jointly.
Maximum Earned Income Credit for 2019 has
increased to $6,557 for taxpayers filing jointly who have
three or more qualifying children, up from a total of
$6,431 for tax year 2018.
Standard Mileage rate for 2020 is 57.7 cents
(business) and 17 cents (moving or medical)
and 14 cents (service of charitable
organizations).
Maximum credit allowed for adoptions is the amount of
qualified adoption expenses up to $14,080, up from
$13,810 for 2018.
Estates of decedents who died during 2019 have a
basic exclusion amount of $11,400,000, up from a total
of $11,180,000 for 2018.
Foreign Earned Income Exclusion for 2019 has
increased to $105,900 up from $103,900 for tax year
2018.
Monthly limitation for the qualified transportation fringe
benefit is $265, up from $260 for tax year 2018.
Dollar limitation for employee salary reductions for
contributions to health flexible spending arrangements is $2,700, up $50 from the 2018 limit.
California Health Care Mandate effective January 1,
2020 a new state law requires California residence to
maintain qualifying health insurance throughout the
year. This requirement applies to each resident, their
spouse or domestic partner, and their dependents.
California New Employment Credit the sunset date for
this credit is extended until taxable years beginning
before January 1, 2026.
California Competes Tax Credit the sunset date for this
credit is extended until taxable years beginning before
January 1, 2030.
Courtesy of Sherlock’s Income Tax Service