Rule Changes

2019 Changes

  • Tax Day is April 15, Changed to July 15, 2020 due to CoronaVirus
  • Tax Penalties related to Obamacare
    • The Affordable Care Act imposed penalties for those not having qualifying healthcare coverage.  Those penalties started at $695 per adult plus $347.50 per child, with a maximum of $2,085 or 2.5% of household income whichever is higher. 
    • In 2018, you must have qualifying healthcare coverage or you will be subject to penalties under the Affordable Care Act.
    • In 2019, the penalty for not having qualified healthcare coverage has been eliminated by the 2017 Tax Cuts and Jobs Act and you will no longer be required to maintain minimum essential coverage.
  • Standard deduction has changed for all filers (2019)
    • $12,200   Single taxpayers
    • $24,400   Married taxpayers
    • $18,350  Head of Household taxpayers
  • Personal exemptions eliminated for 2019
    • There will be no personal exemption for dependents or taxpayers on the 2019 tax return
  • Contribution limits on health savings accounts are going up.
    • Health savings accounts let people with high-deductible health plans set money aside on a pre-tax basis to cover the costs of their healthcare.  for 2019, the contribution limit for individual policies be $3,500, but the maximum contribution for family policies is $7,000.  A catch-up contribution of $1,000 for those 55 or older will continue to apply.
  • The Earned Income Credit is rising.
    • The maximum allowable Earned Income Credit will go up modestly in 2019.  For those with three or more qualifying children, the maximum credit will rise to $6,557, up $113.  

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