On November 15, IRS ******@*****************ks.com&userid=145573431&targetid=&fl=&extra=MultivariateId=&&&2023&&&https://www.irs.gov/newsroom/irs-provides-tax-inflation-adjustments-for-tax-year-2019" target="_blank" rel="noopener">announced tax year ******@*****************ks.com&userid=145573431&targetid=&fl=&extra=MultivariateId=&&&2024&&&https://www.irs.gov/pub/irs-drop/rp-18-57.pdf" target="_blank" rel="noopener">2019 annual inflation adjustments for more than 60 tax provisions, including tax rate schedules and other tax changes. Among other changes, the inflation adjustments include the following:
- The standard deduction
- increases from $24,000 to $24,400 for taxpayers who are married but file jointly
- rises from $12,000 to $12,200 for single taxpayers and married individuals filing separately
- increases from $18,000 to $18,350 for heads of households.
- The earned income credit increases from $6,431 to $6,557 for taxpayers filing jointly, who have three or more qualifying children.
- The adoption credit increases from $13,810 to $14,080.
- Per TCJA changes, the dollar amount used to determine the penalty for not maintaining minimum essential health coverage in calendar year 2019 is reduced from $695 to zero.
- Raises the alternative minimum tax (AMT) exemption amount increases from $70,300 to $71,700. The phase-out threshold increases from $500,000 to $510,300. But for married couples filing jointly, the AMT exemption amount increases from $109,400 to $111,700, and the phase-out threshold increases from 1 million dollars to $1,020,600.
- Sets the §179 amount will be $1,020,000 with a phase-out threshold of $2,550,000.
- Increases the qualified business income threshold under §199A(e)(2) to $321,400 for married individuals filing jointly, $160,725 for married individuals filing separately, and $160,700 for single individuals and heads of household (from $315,000 for joint returns and $157,500 for other taxpayers in 2018).
- Raises $11,180,000 basic exclusion amount for estates of decedents who die in 2018 to $11,400,000 for estates of decedents who die in 2019.
- Increases the monthly limitation for the qualified transportation fringe benefit from $260 to $265.
- Raises the dollar limitation for employee salary reductions for contributions to HSAs from $2,650 to $2,700.
- And various penalty amounts for failure to file tax and information returns or furnish payee statements are also adjusted for inflation for 2019.