2019 Individual Tax Highlights
Focus on the key information you need to know for the upcoming tax season.
IRS Federal Withholding Calculation Error
Review your withholdings and file a new W-4 with your employer.
Key 2019 Tax Law Changes
Health Insurance: No more Individual Mandate
Health Expenses: Health Expense Deductibility Threshold went from 7.5% to 10%. But a late-breaking tax change on 12/22/2019 changed this threshold rate back down to 7.5% AGI.
Divorce: Any new divorce decrees that contain alimony are not considered income for those that receive it and are no longer a deductible for those that pay it. This does not affect agreements prior to 2019.
Identity Theft PIN: Now available in more states.
Retirement Savings - New higher limits!
Roth and Traditional IRAs: $6,000 (up $500). Add $1,000 if age 50 or over.
Simple IRAs: $13,000 (up $500). Add $3,000 if age 50 or over.
401(k), 403(b), and 457: $19,000 (up $500). Add $6,000 if age 50 or over.
Breaking News - Last-minute tax law changes!
Provisions extended through 2019-2020.
Tuition & Fees Deduction Reinstated: Deduction reinstated up to $4,000.
Mortgage Insurance Premiums: Now allowable as an itemized deduction.
Qualified Debt Forgiveness: No longer considered income.
Automatic 60-Day Filing Extension: For taxpayers in federally declared disaster areas.