Thankfully there are no huge changes to the tax laws when you file your 2019 taxes. Minnesota and several other states did not comply with the federal changes regarding employee business expenses. Flight crews and others with work expenses should gather all their information as they have in past years.
Here’s what’s changed in a nutshell…
- The 2019 tax brackets have been adjusted by a few hundred dollars from 2018 to account for inflation. The standard deductions have increased also.
Standard Deduction
|
Filing Status |
2018 |
2019 |
|
Single |
$12,000 |
$12,200 |
|
Married Filing Jointly |
$24,000 |
$24,400 |
|
Married Filing Separately |
$12,000 |
$12,200 |
|
Head of Household |
$18,000 |
$18,350 |
- This is no longer a penalty for not having health insurance.
- Your medical expense deduction are reduced by 10% for 2019 as compared to 7.5% in 2019
- In 2019 you can inherit up to $11.4 million in your lifetime before the 40% estate tax hits you.
What has hot changed?
- The Child Tax Credit is easier to qualify for.
- 529 savings plans for college can now be used for education other than college.
- Mortgage deductions for homeowners was lowered to $750,00 in 2018. If you have a larger mortgage that existed before that you are grandfathered in for the old deduction.
- You can deduct only up to $10,000 worth of state and local income taxes, sales or property taxes.
- You can deduct up to 60% of your income in qualifed charitable donations.
A few other important things.
- Your taxes are due to be filed this year on April the 15th.
- If you do an extension, your return is due on October 15, 2020.
- If you owe too much money and file an extension you may be hit with a penalty for failure to pay.