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Recent Tax Updates

2019 Federal Tax Changes

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)
Mark Castro, CPA

Mark Castro, CPA

Mark has been with CrossLink Professional Tax Solutions (CPTS) since 2008, but has been in the tax industry since 1990. As the government/tax industry liaison for CPTS, Mark has been very active in working with the IRS, States, and other tax industry members to help improve communications, promote standardization, and simplification of eFile systems. Mark has also been active with industry associations as a board member of the National Association of Computerized Processors (NACTP) and the Council of Electronic Revenue Communication Advancement (CERCA) for many years. These two associations work with the IRS and States to help solve key eFile and electronic tax system issues and work to improve the operations of the State and IRS eFile systems.
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