What’s New for 2019 Publication 505 Tax Withholding and Estimated Tax

No longer a requirement to have minimum essential coverage.

Beginning in 2019, you will no longer be required to either have minimum essential coverage, claim a coverage exemption, or report a shared responsibility payment on Form 1040.

Standard deduction amount increased.

For 2019, the standard deduction amount has been increased for all filers, and the amounts are as follows:

  • Single or Married Filing Separately—$12,200.
  • Married Filing Jointly or Qualifying Widow(er)—$24,400.
  • Head of Household—$18,350.

Due to the increase in the standard deduction and reduced usage of itemized deductions, you may want to consider filing a new Form W-4.

Lifetime learning credit income limits.

In order to claim a lifetime learning credit, your Modified Adjusted Gross Income (MAGI) must be less than $58,000 ($116,000 if married filing jointly).

Retirement savings contribution credit income limits increased.

In order to claim this credit for 2019, your MAGI must be less than $32,000 ($64,000 if married filing jointly; $48,000 if head of household).

Adoption credit or exclusion.

The maximum adoption credit or exclusion for employer-provided adoption benefits has increased to $14,080. In order to claim either the credit or exclusion, your MAGI must be less than $251,160.

Earned income credit (EIC).

You may be able to take the EIC in 2019 if:

  • Three or more children lived with you and you earned less than $50,162 ($55,952 if married filing jointly),
  • Two children lived with you and you earned less than $46,703 ($52,493 if married filing jointly),
  • One child lived with you and you earned less than $41,094 ($46,884 if married filing jointly), or
  • A child didn’t live with you and you earned less than $15,570 ($21,370 if married filing jointly).

Also, the maximum MAGI you can have and still get the credit has increased. You may be able to take the credit if your MAGI is less than the amount in the above list that applies to you. The maximum investment income you can have and get the credit is $3,600 for 2019. For additional information see Publication 505 Tax Withholding and Estimated Tax for 2019.

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IRS Compliance

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