Tax News

What’s New for 2019

Individuals:

For Tax Year 2019 a few things changed, and a few stayed the same.

Most of the changes required by the Tax Cuts and Jobs Act of 2017, happened in the 2018 Tax Year.

Here is what changed for 2019:

The Standard Deduction went up slightly:

Individual from $12000 to $12200, Head of Household from $18000 to $18350 and Married Filing jointly from $24,000 to $24400. Over 65 the Standard deduction is increased by $1300.

The ACA (Affordable Care Act) Individual Mandate Penalty no longer applies for lack of health insurance.

Medical deductions are now based on expenses that exceed 10% of your adjusted gross income, up from 7.5%

The Child Tax Credit has doubled to $2000 per child, with some income limitations and there is a

$500 deduction for other dependents.

Student loan interest, child and dependent care credit, and education credits are all allowed for 2019.

Gone for 2019 are:

  • Moving Expense
  • Casualty and Theft losses
  • Miscellaneous deductions
  • Unreimbursed Employee Expenses
  • Tax Preparation Expenses

 

Businesses:

Pass-Through income and the qualified business income deduction of 20% are again eligible for a qualified business in 2019.

Business loss amounts are now limited to $250,000 for individuals or $500,000 for a joint return.

Eligible for 2019 Deductions:

  • Business use of the home
  • Business use of the car
  • Meals and Entertainment
  • Rent Expense
  • Interest and Taxes