Tax information center : IRS : Tax law and policy

Federal Tax Updates

 

Here’s what’s new for 2019:

  • Alternative Minimum Tax (AMT) exemption amounts increased:
  • IRA deduction expanded — You might be able to claim a deduction if both of these apply:
    • You were covered by a retirement plan.
    • Your income was less than $71,000 — or $118,000 for married filing jointly or qualifying widow(er)

If your spouse was covered by a retirement plan but you weren’t, you might be able to claim a deduction. Your income has to be less than $193,000 to claim a deduction in this case.

  • Current standard mileage rates:
    • $0.58 a mile for business use of a vehicle
    • 23.5 cents a mile for medical care
  • Earned Income Credit (EIC) maximum income changes are:
    • Three or more children lived with you and you earned less than $47,747 — or $53,267 if married filing jointly
    • Two children lived with you and you earned less than $46,703 — or $49,974 if married filing jointly
    • One child lived with you and you earned less than $41,094 — or $44,651 if married filing jointly
    • No children lived with you and you earned less than $15,570 — or $20,330 if married filing jointly
    • The maximum investment income you can earn and still get the EIC increased to $3,600.
  • Elective salary deferrals:
    • No exceptions — maximum amount is $18,000
    • SIMPLE plans only — maximum amount is $12,500
    • 403(b) plans and qualify for the 15-year rule — maximum amount is $21,000
    • Catch-up contributions for taxpayers age 50 or over has increased to $6,000. Exceptions include for Section 401(k)(11) and SIMPLE plans

Related Topics

Deadlines and extensions Refunds and payments  Audits and tax notices Tax responsibilities

Related Resources

Received Form 1099-R After Filing Return

Learn what to do if you received form 1099-R after filing your federal tax return with advice from the experts at H&R Block.

Power of Attorney: It’s How Your Tax Pro Deals with the IRS For You

Learn the three main benefits of engaging a power of attorney to research your IRS account and resolve your tax problems. Get the facts from the experts at H&R Block.

Partial Pay Installment Agreement

Get the facts from H&R Block about the IRS payment plan called a partial pay installment agreement, which considers your full financial picture.

Form 1099-R Box 7

Learn how to tell from your Form 1099-R if your distribution came from a SEP, IRA, or SIMPLE plan with tips from the tax experts at H&R Block.