Listed here are changes specific to 2019 taxes. To find a list of changes due to the annual inflation adjustments, see Tax Facts – 2 Year Comparison.
- Alimony rules change for new divorcees. Beginning in 2019, alimony is no longer a tax deduction for those paying it, nor income for those receiving it. This rule change does not impact prior year divorce documents.
- Medical expense deduction threshold raises to 10% then reverts back to 7.5%. To deduct medical expenses as an itemized deduction, threshold is STILL 7.5% percent of your Adjusted Gross Income (AGI). The previous threshold was to be 10 percent, but late law changes keep the threshold at 7.5%.
- Affordable Care Act (ACA) shared responsibility penalty is gone. The portion of the Affordable Care Act that requires everyone to have health insurance or pay a penalty is now suspended.
- Tuition and fees deduction brought back from the dead. In late December a law change makes this potential $4,000 above the line deduction an option once again. Include this deduction as you review your educational expense tax deduction options.
- Mortgage insurance premiums. You may once again deduct qualified mortgage insurance premiums as an itemized deduction.
- Filing deadline moves to July 15. Due to the coronavirus pandemic, the 1040 filing deadline is moved from April 15 to July 15, 2020. The same delay is applied to any quarterly tax payments.
Check back here for recent developments. This notice will be updates with any late breaking law changes.