Some 2019 Federal Tax Changes to be Aware Of

The most important thing to be aware of is that there are a number of changes and you’ll need to consult with a professional when you sit down to prepare you federal 2019 return.

One of the changes could impact recent divorcees. “For divorces that were finalized December 31st 2019 and BEFORE, alimony was deductible to the payer and taxable for the receiver. Now that is not the case,” advises LuSandra of “Home Biz Lady.” Now it’s not a deduction for the payer nor taxable income for the receiver.

For those who itemize medical deductions, the threshold for what qualifies has been raised from 7.5% of taxable income to 10%. And for those who do not have health insurance the elimination of the individual mandate means there is no longer a penalty.

The standard deduction for married filing jointly is up $400 to $24,800.

Investopedia has a nice summary of changes affecting returns for 2019 available here.

This might be a year to consult with professionals.

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