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 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)