EducationFederal Tax Changes for 2019

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 the 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)