What’s New for 2019 Tax Returns?
From now until tax day on April 15, 2020, we will be working hard to complete 2019 tax filings. (For more information about how this might look for you, refer to our Guide to the Tax Changes of 2018.)
Although there are few changes to how we’ll be filing 2019 tax returns from 2018, here are some items to note.
Health insurance. The penalty in the form of a steep tax fine for failing to have health insurance has been eliminated. Therefore, on your 2019 tax returns, there will be no box on Form 1040 to check off indicating that you had health insurance. Be aware, though, that some states do have their own individual health insurance requirements, or you’ll need to have an exemption. For example, Massachusetts, New Jersey and Washington, D.C. have such mandates, and Vermont will have a mandate starting in 2020.
Alimony. As of January 1, 2019, alimony is no longer deductible to the payer and is no longer taxable to the payee for separation or divorce agreements or decrees in effect on this date or later.
Medical expense deduction. If you had a medical expense deduction in 2017 or 2018, the threshold was rolled back to 7.5% of AGI (adjusted gross income). In 2019 it was supposed to increase to 10%. However, with the Further Consolidated Appropriations Act of 2020, the 7.5% threshold has been extended through 2020 (and includes 2019 tax filings).
Deduction for qualified tuition and related expenses. This above-the-line deduction was extended through 2020.
Tax Forms – Refreshed, New and Updated
If you have any questions about your taxes, feel free to contact us.