Tax Considerations for 2019
Last Updated: July 17, 2019
Though most of the changes associated with the Tax Cuts and Jobs Act of 2017 took effect last year, there are some important changes for individuals to be aware of for 2019, as well as upcoming deadlines for you to consider that could impact your 2018 taxes.
The following are some of the most common items that may impact individuals in 2019:
Contributions to IRAs for 2018
Individuals have until April 15 to make previous year contributions to their IRAs and Roth IRAs, if eligible. The limit for 2019 is $6,000, up from $5,500 in 2018. The catch-up contribution (for those over 50) remains $1,000.
Roth IRA Contribution Income Limits
Increase to $137,000 for single filers and a phase-out range of $193,000 - $203,000 for married couples filing jointly.
Distributions of Income from Irrevocable Trusts for 2018
Trusts have 65 days after year end to make distributions for inclusion in 2018 returns.
401(k), 403(b), Most 457 & Thrift Savings Plan Contribution Limits
Increase to $19,000 in 2019 from $18,500 in 2018, with catch-up contributions for those over 50 of $6,000.
Increases by $200 to $12,200 for individuals, and by $400 to $24,400 for married couples filing jointly.
Alternative Minimum Tax
AMT exemption amounts increase to $71,700 for individuals and $111,700 for married couples filing jointly. For trusts and estates, the AMT exemption is only $25,000.
Beginning in 2019, the tax penalty on those that choose not to have health insurance is eliminated.
Annual Gift Exclusion
Remains at $15,000 in 2019.
Estate Tax Exemption
The estate and gift tax exemption increases to $11.4 million per individual in 2019.
Changing Treatment of Alimony
Starting in 2019, alimony payments are nondeductible to the payer and tax-free to the recipient.
Medical Expense Deductions
The threshold has risen to amounts greater than 10% of adjusted gross income, up from 7.5% in 2018.
Source: Internal Revenue Service
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