What’s New for 2019
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
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