The 2019 tax season (for 2018 tax returns) brings several important tax law changes. Whether you’re single or married, an employer or employee, your tax return will almost certainly be different than it was last year.
Here are some of the key changes to look for on your tax return.
Bigger Standard Deductions
The new standard deduction amounts are as follows:
- $12,000 for Single or Married Filing Separate
- $18,000 for Head of Household
- $24,000 for Married Filing Jointly
These amounts represent a substantial increase from last year. However, that amount was partially offset by the elimination of personal and dependent exemptions.
New Child and Family Tax Credits
While dependent exemptions are gone, the child tax credit has been expanded and the new family tax credit can be used on other dependents.
The new Child Tax Credit offers up to $2,000 per qualifying child, with up to $1,400 of that being refundable. Qualifying children must be age 16 or under.
Other dependents could qualify for the Family Tax Credit of up to $500, including qualifying children over age 16 or qualifying relatives.
Limits on Certain Itemized Deductions
The deduction for state and local taxes, as well as the home mortgage interest deduction, have no limits that could reduce your itemized deductions. The new mortgage debt limit is $750,000, or $375,000 for married filing separate status. State and local tax deductions are limited to $10,000, or $5,000 for married filing separate status.
Mortgages that were taken out before the Tax Cuts and Jobs Act may still qualify for treatment under the old tax laws, so consult a tax professional to make sure you get the deduction you deserve.
No Miscellaneous Itemized Deductions
Miscellaneous itemized deductions were an array of different expenses that didn’t fit anywhere else in the tax code. Some of the more notable ones were unreimbursed employee expenses, union dues, and tax preparation expenses.
If you itemize and have some of these expenses, you’ll no longer be able to claim them. Fortunately, you might benefit from some of the other new tax laws, so this loss won’t sting quite as much.
There are many other new tax laws taking effect this year. Consult a tax professional to make sure you’re taking full advantage of all the new deductions and credits to increase your refund or minimize how much you owe to the IRS.
If you have a tax liability you can’t pay right now, consult a tax resolution attorney to discuss your options.
The Gartzman Law Firm offers tax settlement help for both federal and state tax debt. Use our contact form to request a consultation with an Atlanta tax resolution attorney.