Standard Deduction

2019 Annual Inflation Adjustments


Now that the 2018 tax filing season is over, here are some 2019 tax numbers that may be of interest.

  • Standard Deduction:

    • $24,400 for Married Filing Jointly (increased $400)

    • $12,200 for Single (increased $200)

  • Adoption Credit: $14,080 (increased $270)

  • Qualified Business Income Threshold:

    • $321,400 for Married Filing Jointly (increased $6,400)

    • $160,700 for Single (increased $3,200)

  • Unified Credit against the Estate Tax: $11,400,000 (increased $220,000)

  • Annual Gift Tax Exclusion: $15,000 (no change)

  • Refundable portion of Child Tax Credit: $1,400 (no change)

  • Federal Income Tax Brackets: See tables below.

2019 Federal Income Tax Brackets.png

Want more details and more numbers? Read the IRS’s Revenue Procedure 2018-57.

Not Everything Has Changed


I thought it would be helpful to provide a list of items that have not changed with the recent Tax Cuts and Jobs Act of 2017. This list is not exhaustive, but it does include the most common for clients I have served. There was discussion about changes to these items, but nothing changed.

  • Selling your personal residence? You’re still able to exclude a gain of $250,000 (or $500,000 if married) when you sell your home and if you lived in the home two out of the last five years.
  • Age 65 before the close of the tax year? You’ll still qualify for the additional standard deduction.
  • Adopting a child? You can still exclude from income amounts paid by your employer under a qualified adoption assistance program.
  • Paying out-of-pocket qualified educator expenses as a teacher? You may still track and deduct $250 of expenses above-the-line on your tax return.
  • Attending college? The credit options remain the same for qualified higher education expenses. You may take either the Lifetime Learning Credit or the American Opportunity Credit.
  • Paying student loan interest? You’ll still be able to deduct up to $2,500 of interest paid under a qualified student loan.

If you’re in doubt about a tax provision, please remember to research using reliable resources and/or ask your tax preparer to help you understand how the issue applies to you.