Various Adjustments of Tax Numbers for 2019

Filing statuses: S=single, HH=head of household, MFS=married filing separately, MFJ=married filing joint, QW=qualifying widow(er);
Most references to AGI mean modified adjusted gross income for that deduction.

The Tax Cut and Jobs Act (TCJA) is in effect for 2018 through 2025, unless modified or extended in the future. Changes to various tax deductions are indicated below.
Maximum Salary Deferrals: $19,000 for 401(k), 403(b), 501(c), 457 plans; / $13,000 for SIMPLE
'catch-up'contribution limits for age 50+: (additional $6,000 / $3,000 for SIMPLE)
$2,700 for Health FSA
Self-Employed: SEP-IRA: $56,000
Traditional IRA Contributions Limit: $6,000 (up to amount of earned income for the year)
  additional catch-up $1,000 for age 50+

Traditional IRA Deduction AGI Phaseout:
(when also eligible to contribute
to a retirement plan at work)
MFJ, QW:  $103,000-$123,000
S, HH:  $64,000-$74,000
MFS:  0-$10,000 (living apart all year, see S)
And when taxpayer not plan-eligible, but spouse covered by a plan, MFJ: $193,000-$203,000

Roth IRA Contributions AGI Phaseout:
MFJ:  $193,000-$203,000
S, HH:  $122,000-$137,000
MFS:  0-$10,000 (living apart all year, see S)

Retirement Savings Credit ('Saver's Credit') AGI Full Phaseout:
MFJ:  $64,000
HH:  $48,000
S, QW, MFS:  $32,000
Social Security: Before retirement age, can earn up to $17,640 without repaying benefits.
  Benefits reduced $1 for each $2 earned over limit
Preceding months in year of reaching retirement age: $46,920.
  Benefits reduced $1 for each $3 earned over limit
On/after retirement month, no limit.
Maximum monthly benefit retiring in 2019: $2,861

Earnings subject to SS tax:
  Employee: $132,900 (maximum $8,240 w/h)
  Household help: cash wages over $2,000
Health Savings Account: Maximum HSA contribution $3,500 individual coverage / $7,000 family coverage.
  additional catch-up $1,000 for age 55+
Health Insurance Premium Credit: 100-400% poverty level (of 2018 for 2019 tax credit)
1 person: $12,140 - 48,560
2 people: $16,460 67,640
...add $4,320 per additional person in household
Child Tax Credit: $2,000 per eligible child; phaseout starts at a higher AGI level of 400K MFJ, 200K others. (TCJA)
Educational Credit:  (MFS ineligible) American Opportunity Credit (aka Hope Credit):
100% of first $2,000, 25% of next $2,000 tuition (all 4 years college)
   AGI phaseout: $80,000-$90,000 (individual); $160,000-$180,000 (MFJ)
Lifetime Learning Credit: 20% of up to $10,000 tuition (any year college+)
   AGI phaseout: $58,000-$68,000 (individual); $116,000-$136,000 (MFJ)
Tuition and Fees Deduction:
renewed late in Dec 2019, and retroactive for 2018
AGI limit is a cutoff for either a 2K or 4K credit.
$65,000/$80,000 (individual); $130,000/$160,000 (others); MFS ineligible
(assuming AGI limits are not updated from 2017.)
Student Loan Interest:  (MFS ineligible)
Up to $2,500
AGI phaseout: $70,000-$85,000 (individual); $140,000-$170,000 (MFJ)

Earned Income Credit:  (MFS ineligible)
Earned income starting at:
$6,780 (no child), $10,180 (one child), $14,290 (two/more children)

Earned income/modified AGI phaseout range:
(All phaseout ranges increased by $5,790/$5,800 if MFJ)
One qualifying child:  up to $40,320  (maximum credit $3,526)
Two qualifying children:  up to $45,802  (maximum credit $5,828)
Three/more qualifying children:  up to $49,184  (maximum credit $6,557)
Qualifying without child: up to $15,570   (maximum credit $529)
(disqualified if investment income over $3,600, any filing status)
Adoption Credit: Up to $14,080 (phaseout $211,140-$251,160)
'Kiddie Tax' Child under 18/full-time student under 24, with interest/dividends over $2,200
'Secure Act' reversed TCJA which changed tax rates from parents' marginal rate from trust/estate tax brackets.
Standard Mileage Rates:   Business:  58¢  (Depreciation adjustment: 26¢)
  Charity:  14¢
  Medical:  20¢
Employee business expenses and nonmilitary moving expenses are eliminated (TCJA).
Itemized Deduction phaseout: This has been eliminated. And with no personal exemptions, that phaseout also eliminated. (TCJA).
Section 179 Expense: per tangible personal property: $1M
phaseout starts at $2.5M placed in service
Capital Gain Tax: Long-term (holding over a year):
0% for taxable income under $39,375 (S,MFS), $52,750 (HH), $78,750 (MFJ, QW)
15% for taxable income under $434,550 (S), $461,700 (HH), $488,850 (MFJ, QW) or $244,425 (MFS)
20% for taxable income over those amounts.
Gift Tax Exclusion/ Estate Exclusion: $15,000 / $11,180,000
Foreign Income Exclusion: $105,900

See the original 'NEW TAX LAWS' menu for historical changes.




2019 Standard Deductions New for 2019