2019 Federal Tax Changes

Below are some of the federal provisions that will go into effect or be changing in 2019.

Provisions that go Into Effect Beginning in 2019:

  • Alimony – For divorce settlements that are finalized in 2019 and beyond
    • Alimony and separate maintenance payments are not deductible by the payor spouse.
    • Alimony and separate maintenance payments are no longer included in income of surviving spouse.
  • ACA Individual Penalty no longer applies. This means that individuals that do not have health insurance for all or part of 2019 will no longer be subject to a penalty.

Changing or Inflation Adjusted Provisions in 2019:

  • Medical Expense Threshold on Schedule A
    • 10% of AGI for all taxpayers beginning in 2019
  • Standard Deduction
    • MFJ: $24,400
    • Single: $12,200
    • Head of Household: $18,350
  • Federal Mileage Rates
    • 58 cents per mile – Business
    • 20 cents per mile – Medical and moving
    • 14 cents per mile – Charity
  • Retirement Contribution Limits
    • IRAs – $6,000 ($7,000 for taxpayers over 50)
    • 401(k), 403(b) or 457 plans – $19,000 ($25,000 for taxpayers over 50)

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