FY 2019 Tax Forms
IRS Forms, Instructions, and Publications
Other Forms and Worksheets
Business or Profession Worksheet
I-9 Employment Eligibility Form
2019 Tax Updates
New Tax Law Still In Effect
The Tax Cuts and Jobs Act was signed into law as of December 2017. The new law was a major change to the federal tax code which include changes to personal and business income taxes.
Changer for personal income taxes are new tax rates, increased Standard Deductions, elimination of Personal Exemptions, changes to Itemized Deductions and increased Child Tax Credits.
Changes for business income taxes include a new flat corporation tax rate, increased expensing for certain assets and a qualified business income deduction.
Many of these changes have complex rules and how they apply to each individual tax return will vary based on your personal circumstances. Your preparer will be able to discuss how the changes affect your tax return.
Personal Income Tax Changes
The 2019 federal tax rates are 10%, 12%, 22%, 24%, 32%, 35%, and 37%. The Standard Deductions for 2019 are $24, 400 for Married filing Join; $12,200 for single; $18, 350 for Head of Household and $12,200 for Married filing Separate.
The Personal Exemption amount for 2019 is still $0. However, there are additional tax benefits that are still effected by the number of dependents claimed on the tax return.
The Child Tax Credit remains $2,200 per qualifying child. The rules for a qualifying child are the same as 2018 and the child must have a valid Social Security Number.
There is also a smaller, $500 credit for dependents that are not qualifying children for the Child Tax Credit.
The changes to Itemized Deductions still in effect include: a $10,000 limit on the State and Local Taxes Deduction. This includes Real Estate, Income, and Sales Taxes. A limit on the Home Mortgage Interest deduction for the interest on up to $750,000 of loans used only to acquire, construct, or substantially improve the home. Miscellaneous Itemized Deductions that were limited by 2% of Adjusted Gross Income have been eliminated. These include Unreimbursed Employee Business Expenses and Investment Expenses. This does not include Business Expenses for a self-employed person. Casualty and Theft Losses are only deductible if they occurred in a federally declared disaster area.
Business Income Taxes
The Corporate Tax Rate for “C” corporations for 2019 is a flat 21%.
100% Bonus Depreciation is allowed for qualified assets placed in service in 2019. Bonus Depreciation is now allowed for qualified used property.
The 2019 limit for Section 179 expense, for otherwise depreciable assets, is increased to 1 million 200 thousand dollars. The deduction is limited if the total assets place in service for the year are over 2 million 550 thousand dollars.
The new qualified Business Income Deduction provides for a deduction from taxable income up to 20% of Qualified Business Income. This Deduction is allowed for income from Self-employment and Qualified Business Income from partnerships and “S” Corporations. The deductions can be limited based on certain factors including income and the type of business.
Most of these changes will not effect PA Personal Income Taxes. The PA rules are mostly the same for 2019.
Affordable Care Act / Premium Tax Credit
If you purchased insurance from the marketplace in 2019 you will still receive a Form 1095A. If you received an Advanced Premium Tax Credit that is also on the Form 1095 A. That form is required to complete your return. The penalty for not obtaining qualified coverage is $0 for 2019.
Delayed Refunds in 2020
The IRS will not give a refund or credit for tax returns that have claimed the Earned Income Credit and or the Additional child tax credit before February 15th.
What to Bring to Bring to Your Tax Appointment
• Federal, state, and local estimated payment vouchers.
• W-2s, 1099s, SSA statement or business records if you are self-employed.
• Social security cards for you, your spouse, and dependents.
• Date of birth for taxpayer, spouse, and all dependents.