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  • Writer's picturePace Accounting

2019 Individual Tax Highlights

Focus on the key information you need to know for the upcoming tax season.

Video highlights:

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.

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