2019 Tax Planning Changes to Keep on Your Radar1 min read

by | Individual Tax Planning, Strategic Planning, Tax Planning, Preparation & Compliance

While the 2018 tax filing deadline of Monday, April 15th will be here before we know it, it’s important to be aware of several changes to the tax law that have gone into effect for 2019.

Some were ushered in by legislation such as the Tax Cuts and Jobs Act, the 2016 Consolidated Appropriations Act and the Bipartisan Budget Act of 2018.  Still other change are the result of various administrative pronouncements by the IRS.

In 2019, medical expenses will be harder to deduct.  For 2018, itemizers could deduct medical expenses to the extent they exceeded 7.5% of the taxpayer’s adjusted gross income.  For 2019, the “floor” beneath medical expense deductions increases to 10%.

2019 will come with big changes to alimony payments.  For payments required under divorce or separation instruments that are executed after December 31, 2018, the deduction for alimony payments is eliminated.  Recipients of affected alimony payments will no longer have to include them in taxable income.

The above rules for alimony payments also apply to payments that are required under divorce or separation instruments that are modified after December 31, 2018, if the modification specifically states that the new-for-2019 treatment of alimony payments (not deductible by the payer and not taxable income for the recipient) applies.

Starting in 2019, the ACA’s individual shared responsibility payment is no more.  The Affordable Care Act generally provides that individuals must have minimum essential coverage for health care, qualify for an exemption, or make an individual shared responsibility payment (i.e., pay a penalty) when they file their federal income tax return.  The Tax Cuts and Jobs Act reduced the individual shared responsibility payment to zero for months beginning after December 31, 2018.

For more detailed information click here.

By Simons Bitzer

View bio | Read more articles

Here are a few additional articles you might be interested in:

Office Manager

JOB DESCRIPTION Position: Office Manager Department: Administration Status: Full Time Position Summary The Office Manager ensures the smooth, profitable operations of the Simons Bitzer office and provides comprehensive support to the Managing Principal....

read more

Staff Accountant

JOB DESCRIPTION Position: Staff Accountant Department: Accounting Status: Full Time Position Summary The Staff Accountant provides intermediate to advanced accounting services to a regular portfolio of customers. Responsibilities Chargeable work (83% of total hours)...

read more

Should You Elect Out of the New Partnership Audit Rules?

The Bipartisan Budget Act signed into law in 2015 and effective for partnership returns filed for taxable years beginning after 2017 has significant impacts on partnership audits. Most notably that audit adjustments are to be recognized in the year an audit is...

read more

Can we help you find something?

Want to continue the conversation?

© 2020 Simons Bitzer & Associates, PC  Privacy Policy

© 2020 Simons Bitzer & Associates, PC

Privacy Policy

Share This