Searching for 2019 tax changes? This post should help! Here we outline the most important 2019 tax changes for individuals and families.
Standard Deduction Changes
The standard tax deduction for married filing jointly increased another $400 from the previous year to $24,400 for tax year 2019.
Single Tax Payers & Married Individuals Filing Separately
Standard deductions for both single and married individuals filing taxes separately for 2019 have increased another $200 to $12,200.
Head Of Household Changes
The standard deduction for head of household has increased another $350 to $18,350 for 2019.
Personal Exemption Changes
The personal exemption for 2019 stays at 0, the same as 2018, as elimination of the personal exemption was one of the provisions in the Tax Cuts and Jobs Act.
Individual Single Taxpayers Tax Rate Changes
- 37%, for income over $510,300
- 35%, for income over $204,100
- 32%, for income over $160,725
- 24%, for income over $84,200
- 22%, for income over $39,475
- 12%, for income over $9,700
- 10%, for income over $9,700
Married Couples Filing Jointly Tax Rate Changes
- 37%, for income over $612, 350
- 35%, for income over $408,200
- 32%, for income over $321,450
- 24%, for income over $168,400
- 22%, for income over $78,950
- 12%, for income over $19,400
- 10%, for income over $19,400
Itemized Deductions Changes
There is not a limit on itemized deductions in 2019, the same as in 2018, as the limitation was eliminated by the TCJA.
Alternative Minimum Tax Exemption Changes
The AMT exemption amount for 2019 is $71,700 (up $1,400 from 2018) and starts to phase out at $510,300 (up $10,300 from 2018). The AMT exemption amount for married couples filing jointly is $111,700 (up $2,300 from 2018) and starts to phase out at $1,020,600 (up $20,600 from 2018).
Earned Income Credit Changes
The maximum Earned Income Credit for 2019 is $6,557 (up $126 from 2018) for tax payers filing jointly and have 3 or more qualifying children.
Qualified Transportation Fringe Benefit & Qualified Parking Changes
The monthly limitation for the qualified transportation fringe benefit it 2019 is $265 (up $5 from 2018), as is the limitation for qualified parking.
Health Coverage Penalty Changes
For 2019, the penalty for not maintaining health coverage is 0, per the TCJA (down $695 from 2018).
Employee Salary Reduction Changes
For taxable years starting in 2019, the limitation for employee salary reductions is $2,700 (up $50 from 2018) for contributions to health flexible spending arrangements.
Medical Savings Account Changes
Participants who have a Medical Savings Account with self-only coverage, the plan must have a yearly deductible that isn’t less than $2,350 (up $500 from 2018); but not to exceed $3,500 (up $50 from 2018). The minimum out-of-pocket expense amount for self-only coverage is $4,650 (up $100 from 2018). The annual deductible for participants with family coverage is $4,650 (up $100 from 2018); but not to exceed $7,000 (up $150 from 2018). The out-of-pocket expense limit for family coverage is $8,550 (up $150 from 2018).
Adjusted Gross Income Changes
The AGI amount used by tax payers filing jointly to determine the reduction in Lifetime Learning Credit is $116,000 (up $2,000 from 2018).
Foreign Earned Income Exclusion Changes
The foreign earned income exclusion changed to $105,900 (up $2,000 from 2018.
Exclusion For Gifts Changes
The annual exclusion for gift changes to $15,500 in 2019 (no change from 2018).
Adoption Credits & Expenses Changes
The maximum tax credit for adoptions is the amount of qualified adoption expenses up to $14,080 (up $270 from 2018).