Tax season is upon us. Time to gather all your paperwork and receipts from 2019.
“Life events can affect your taxes. Some of them include, a change in marital status, educational expenses, buying or selling a home, retirement, a raise, receiving an inheritance and dealing with a death,” says Ellsworth Buck, Vice President of GreatFlorida Insurance, Florida’s top independent homeowners insurance company.
“Even without major tax law changes, every year brings a host of smaller amendments to existing provisions,” reports financial website, The Motley Fool.
Here is some of what is new for your 2019 tax filing.
- The IRS is raising the standard deduction to $12,200 for individuals and to $24,400 for married joint filers. The additional standard deduction for older taxpayers and those who are blind is still available.
- The IRS has raised the employee contribution limit for 401k, 403b and most 457 plans to $19,500. This lowers your taxable income.
- Some families will be eligible for a deduction of $2,000 to $4,000 for college tuition.
- Victims of hurricanes, major floods or wildfire, those acknowledged as a “presidentially declared disaster area,” may benefit from tax breaks.
- If your medical expenses were more than 7.5 percent of your adjusted gross income, you can deduct those expenses.
“There are some long-time deductions that will not be included on 2019 tax forms,” says Ellsworth Buck, Vice President of GreatFlorida Insurance, Florida’s largest independent homeowners insurance company.
- For recently divorced Americans, alimony payments are no longer tax deductible by the payer. They are also not considered or included as taxable income by the parent receiving support.
- Those job seeking, can no longer deduct expenses related to finding a new job.
- Employees are no longer permitted to deduct un-reimbursed expenses that they incur from work.
- No more moving expense deductions, except for active military for a move relating to military orders to a permanent location.