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2019 Tax Information

Date: 1/2/2020

   Form 1040-SR U.S. Tax Return for Seniors

New for 2019, seniors (aged 65 and older) will have their own tax return option thanks to the Bipartisan Budget Act of 2018. The new form is a simplified version of the much larger, more complex Form 1040. It has a larger font size and better color contrast making it easier to read. The form allows seniors to claim the standard deduction or itemize their deductions on Schedule A. There are also no income limits or restrictions on types of income reported like on the prior Form 1040EZ, so more seniors will qualify to file the 1040-SR. A draft version of the Form 1040-SR can be viewed on the IRS website.

   New Supplemental Schedules Redesigned

For 2018 tax returns, taxpayers had six (6) new supplemental schedules that would build on the Form 1040. For 2019 tax returns, those schedules have been redesigned and merged into three (3) schedules that will hopefully streamline the filing process. The three (3) new schedules combine some of the prior year schedules into larger forms. Drafts of these redesigned schedules can be viewed on the IRS website. [Schedule 1Schedule 2 and Schedule 3].

IRA Contribution Limits

IRA contribution limits have also increased to $6,000 with a $1,000 catch-up amount for taxpayers over age 50.

401k Contribution Limits

401K contributions limits have been increased to $19,000 with an additional $6,000 for taxpayers over age 50 making catch-up contributions. Taking advantage of these high limits will decrease your taxable income.

 Income Tax Brackets & Tax Rates

For 2019 tax returns, there are still seven (7) tax rates. They are: 10%, 12%, 22%, 24%, 32%, 35% and 37%. Below are tables depicting how the brackets look by filing status:

 

Individual Taxpayers

If Taxable Income Is Between:

The Tax Due Is:

0 - $9,700

10% of taxable income

$9,701 - $39,475

$970 + 12% of the amount over $9,700

$39,476 - $84,200

$4,543 + 22% of the amount over $39,475

$84,201 - $160,725

$14,382.50 + 24% of the amount over $84,200

$160,726 - $204,100

$32,748.50 + 32% of the amount over $160,725

$204,101 - $510,300

$46,628.50 + 35% of the amount over $204,100

$510,301 +

$153,798.50 + 37% of the amount over $510,300

 

Married Individuals Filing Joint Returns and Surviving Spouses

If Taxable Income Is Between:

The Tax Due Is:

0 - $19,400

10% of taxable income

$19,401 - $78,950

$1,940 + 12% of the amount over $19,400

$78,951 - $168,400

$9,086 + 22% of the amount over $78,950

$168,401 - $321,450

$28,765 + 24% of the amount over $168,400

$321,451 - $408,200

$65,497 + 32% of the amount over $321,450

$408,201 - $612,350

$93,257 + 35% of the amount over $408,200

$612,351 +

$164,709.50 + 37% of the amount over $612,350

Heads of Household

If Taxable Income Is Between:

The Tax Due Is:

0 - $13,850

10% of taxable income

$13,851 - $52,850

$1,385 + 12% of the amount over $13,850

$52,851 - $84,200

$6,065 + 22% of the amount over $52,850

$84,201 - $160,700

$12,962 + 24% of the amount over $84,200

$160,701 - $204,100

$31,322 + 32% of the amount over $160,700

$204,101 - $510,300

$45,210 + 35% of the amount over $204,100

$510,301 +

$152,380 + 37% of the amount over $510,300

 

Married Filing Separately

If Taxable Income Is Between:

The Tax Due Is:

0 - $9,700

10% of taxable income

$9,701 - $39,475

$970 + 12% of the amount over $9,700

$39,476 - $84,200

$4,543 + 22% of the amount over $39,475

$84,201 - $160,725

$14,382.50 + 24% of the amount over $84,200

$160,726 - $204,100

$32,748.50 + 32% of the amount over $160,725

$204,101 - $306,175

$46,628.50 + 35% of the amount over $204,100

$306,176 +

$82,354.75 + 37% of the amount over $306,175

 

2020
Jan-02-20202019 Tax InformationJan-02-2020Important Tax Changes for Individuals in 2019
2019
Dec-09-2019IRS Installment AgreementsNov-08-2019Innocent Spouse ReliefOct-04-2019Small Business Start-Up and Entity Selection/RestructuringSep-11-2019Tax Planning for FranchisesJul-16-2019 Tips for Finding the Right Accountant for Your Taxes
2018
Oct-30-2018The Tax Cuts and Jobs Act of 2017Sep-26-2018What Business Owners Should Know About the Tax Cut and Jobs Act (TCJA)Sep-07-2018Are You Planning to Use Your Tax Refund to Cover Holiday Expenses?Jul-24-2018Heemer, Klein & Company, PLLC Protects Client Data Against Cyberattacks Jun-01-2018Why Most Small Business Owners Should Convert their LLCs and C Corps to S CorporationsMay-18-2018How to Start Tax Preparation for 2019 Right NowJan-08-2018Tax Cuts and Jobs Act
2017
Oct-17-2017Small Business Health Care NewsJan-14-20172017 Standard Mileage Rates
2015
Dec-21-20152015 Tax Extenders (PATH Act) UpdateOct-27-2015Affordable Care Act (Obamacare)Sep-09-2015IRS News and InformationJul-09-2015"Solo"401K" Retirement planMay-26-2015Deducting Losses from a DisasterApr-03-2015Avoid Late Filing PenaltyMar-23-2015Reporting Foreign IncomeMar-19-2015Home Office Tax DeductionMar-06-2015Education Tax CreditsMar-02-2015Small Business Health Care Tax CreditFeb-27-2015Early Retirement DistributionsFeb-26-2015Net Investment Income TaxFeb-24-2015Capital Gains and LossesFeb-09-2015Missing W-2 / Prior year Tax Return CopiesJan-12-20152014 Comprehensive Tax Year In Review
2014
Dec-31-2014Tax Updates 2014May-23-2014Year End Tax Planning -- AMTMay-01-2014Standard Mileage RatesJan-03-2014The 2013 New 3.8% Net Investment Income Tax & Business Tax Breaks
Past
Dec-13-2013The Affordable Care ActJun-01-2013Higher Education Costs Continue to EscalateMay-01-2013Tax Breaks for Families and StudentsApr-01-2013Residency Issues for RetireesMar-01-2013American Taxpayer Relief Act of 2012Jan-01-2013Filing Status Implications