We keep track of all the tax law changes so you don't have to. TaxAct 2019 federal and state products have all the latest tax law changes to help you get your maximum guaranteed refund the fastest way possible!
The maximum amount of earned income on which you pay Social Security tax is now $132,900. When you reach that amount with one employer, they should stop withholding Social Security tax from your pay until the following year. If you work for more than one employer, and your total earnings are more than $132,900, TaxAct calculates a credit for any overpayment of Social Security taxes.Print
You may qualify for a credit equal to up to $14,080 of your adoption expenses. If your employer provides adoption benefits, you may also be able to exclude up to the same amount from your income. Both a credit and exclusion may be claimed for the same adoption, but not for the same expense. The credit is permanent and indexed to inflation.Print
The child tax credit remains $2,000 per qualifying child. Phase out also remains steady at $200,000 ($400,000 if married filing jointly). Qualifying children must have a Social Security Number (SSN). If a child has an ITIN but no SSN you may be able to claim the Other Dependent Credit instead.Print
If you move in 2019, you are no longer able to deduct moving expenses unless you are an active military member and were ordered to move.Print
You can still deduct mortgage interest in many cases, but new law changes impose stricter limitations. The new cap for qualified residence loans is $750,000 ($375,000 if married filing separate). This total can only include funds used to buy, build, or substantially improve a qualifying residence.Print
If you invest in property in a designated qualified opportunity zone, you may be able to defer gains on that investment by filing Form 8997. This may apply to individuals, C corporations, S corporations, trusts, and estates. The IRS defines a qualified opportunity zone as a population tract that is a low-income community designated as a qualified opportunity zone. A list of qualified opportunity zones can be found on IRS Notice 2018-48 and Notice 2019-42.Print
The Again for 2019, the IRS redesigned Form 1040 and Schedules 1-6.
Form 1040, page one:
Form 1040, page two:
Schedule 1 – Additional Income and Adjustments to Income
Schedule 2 – Tax
Schedule 3 – Nonrefundable Credits
The standard amount you can deduct from income if you don't itemize your deductions is $12,200 ($24,400 for married couples filing jointly, or $18,350 if you file as head of household).Print
The Alternative Minimum Tax (AMT) exemption amount for individuals rises in 2019 to $71,700 and begins to phase out at $510,300. For married couples filing jointly, the exemption rises to ($111,700, with phase-out beginning at $1,020,600 for married couples filing jointly).Print
If you have no children, your maximum Earned Income Credit for 2019 is $529. With two children, the maximum amount is $5,787, and with one child, it is $3,526. If you have three or more qualifying children, the maximum Credit you can receive for 2019 is $6,557 (up from $6,431 in 2018).Print
You may be able to exclude all or part of the interest from qualifying Series EE or Series I bonds if you use the income for qualified educational expenses. You cannot take this benefit if your modified adjusted gross income is $96,100 or more ($151,600 if you file jointly, or if you file as Qualifying Widow(er) with Dependent Child).Print
The American Opportunity Tax Credit income limits remain unchanged for 2019. You can claim this benefit even if the student doesn't receive Form 1098-T from the education institution. Make sure to have your TIN ready by the time you file - you can't claim the credit without it.Print
The Pease provision that outlined limits on itemized deductions for high-income households has been eliminated for 2018.Print
Since the Tax Cuts and Jobs Act removed personal exemptions, the phase-outs are gone as well.Print
The standard mileage rate for the use of your car or other vehicle jumps to 58 cents per mile for business (up from 54.5 cents for 2018) and up to 20 cents per mile driven for medical or moving purposes (up from 18 cents for 2018). The rate for charitable travel remained the same at 14 cents per mile.Print
The most you can contribute to one of these plans increases to $2,700. Your spouse can also contribute $2,700 if he or she meets the qualifications. For certain FSAs, up to $500 can still be carried over to the next year.Print
(1) Self-only coverage. The term "high deductible health plan" as defined in Sec. 220(c)(2)(A) means, for self-only coverage, a health plan that has an annual deductible that is not less than $1,350 and not more than $3,500, and under which the annual out-of-pocket expenses required to be paid (other than for premiums) for covered benefits do not exceed $6,650.
(2) Family coverage. The term "high deductible health plan" means, for family coverage, a health plan that has an annual deductible that is not less than $2,700 and not more than $7,000, and under which the annual out-of-pocket expenses required to be paid (other than for premiums) for covered benefits do not exceed $13,500.Print