Tax Changes

2019 Annual Inflation Adjustments

 
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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.

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

2019 Standard Mileage Rates

 
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On December 14, 2018, the IRS announced 2019 Standard Mileages Rates. More details are available in IRS Notice 2019-02.

  • 58 cents per mile for business use (up from 54.5 cents in 2018)

  • 14 cents per mile for charitable purposes (no change from 2018)

  • 20 cents per mile for medical purposes (up from 18 cents in 2018)

Here are two points to remember. (See section 4.05 of IRS Rev. Proc. 2010-51 for more information.)

  1. You may generally only use the business standard mileage rate if you did not depreciate the vehicle the first year of its useful life.

  2. A business may not use the standard mileage rate if it owns or leases five or more vehicles. Actual costs must then be used.

Redesigned 2018 Form 1040

The IRS released the redesigned 2018 Form 1040. Curious where you will report your self-employment income for 2018? Here’s a brief overview.

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Want to view the actual redesigned forms? Here are links to the forms.