The new tax seasons begins Monday, January 27, 2020.
I am listing changes that may affect you this filing season. Please review and call me if you have further questions regarding these changes. There is ALWAYS something new or changing at the IRS.
Obamacare – taxpayers that did not have health coverage in 2019 will NOT pay a penalty. This is NOT true for late 2018 filers.
Health Savings Accounts (HSA’s) annual contributions limits for 2019 was $3500. for single and $7000. for families. For those over age 55 you can add a catch-up contribution of $1000.
The standard deduction increased for 2019 to $12200. for singles and $24400. for married couples with additional $1300. per each spouse for those over age 65. Head of Household increases to $18350. with an additional amount of $1650. for those over 65.
The tax rate on long term capital gains and qualified dividends remain the same, however, the income thresholds for various rates have changed.
The net investment income tax surcharge of 3.8% applies for singles when modified Adjusted Gross Income is over $200,000. and over $250,000 for joint filers.
The standard mileage rate for 2019 was $.58 per mile. Make sure you have mileage logs to back-up your mileage claimed. This deduction can be significant for the self employed.
The gift tax exclusion remained at $15,000. for 2019.
Please check your driver’s license before filing your taxes. The information may need to be updated if your renewed your license in 2019.
These are just a few of the changes that occurred during 2019. There are several more that may apply to your situation this year. Let me know if there are concerns that I can help you with.