What You Need To Know Before Filing 2019 Taxes

January 9, 2020

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Now that 2019 is history, our W2 tax forms will soon be arriving as we prepare to file income tax. While last year we faced a lot of changes, this year will be a lot less jarring. There are a few adjustments you should know about, but for the most part, it’s all going to feel very familiar. Single taxpayers can still take a standard deduction of $12,200, while married couples can take a standard deduction of $24,400. The tax brackets and rates are the same as last year. What has changed is that if you don’t take the standard deduction and instead choose to itemize, you have fewer forms to sift through. That's good news if your unreimbursed medical expenses exceed 7.5% of your annual gross income as you can deduct them.  The percentage was scheduled to go up to 10% but remains at 7.5% for 2019 filing.  However you wouldn’t do this unless your total deductions add up to more than the standard deduction. The biggest change is for those who got divorced in 2019 as you can no longer deduct money you paid as alimony. It also no longer counts as income if you received the alimony. But if your divorce was finalized before December 31 of 2018, the old rules still apply. The first day the IRS will process 2019 tax returns will be January 27, 2020 and you must file your taxes or apply for an extension by April 15, 2020.

SOURCE: Two Cents

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