Tax Year 2019: What's New From the IRS?

February 01, 2019

person on phone and tax forms on desk

Tax law changes are nothing new – but when they occur, you want to be in the know. The IRS has announced the following projected changes for this tax year:

  • Standard deduction – If you’re married filing jointly, your standard deduction rises to $24,400, up$400 from 2018. If you’re a single taxpayer or married filing separately, the standard deduction is $200 higher at $12,200. If you file as a head of household, your standard deduction is $18,350, up $350.
  • Personal exemption – The Tax Cuts and Jobs Act suspended the personal exemption.
  • Tax brackets – The following are adjusted for inflation:
  • 2019 tax bracket chart showing rate percentages and taxable income dollar amounts
    Source: taxfoundation.org
  • Retirement account contribution limits –These have risen $500 from 2018. Your total contributions to all of your traditional and Roth IRAs cannot be more than $6,000 ($7,000 if you’re age 50 or older) or your taxable compensation for the year, if your compensation was less than this dollar limit.
  • Itemized deductions – The Tax Cuts and Jobs Act changed the rules on these. Check with your tax professional for details.
  • Alternative Minimum Tax (AMT) – For unmarried individuals, the exemption amount rises to $71,700 and begins to phase out at $510,300. For married couples filing jointly, the exemption amount is $111,700, and the exemption begins to phase out at $1,020,600.
  • Estate tax exclusion – The basic amount rises to $11,400,000, up from a total of $11,180,000 for estates of decedents who died in 2018.
  • Gift tax exclusion – The $15,000 amount remains the same as it was in 2018.

For more information on these and other tax law changes, visit irs.gov. For investment-related questions, contact your financial advisor.

Important Information:

Edward Jones, its employees and financial advisors cannot provide tax or legal advice. You should consult your attorney or qualified tax advisor regarding your situation. This content should not be depended upon for other than broadly informational purposes. Specific questions should be referred to a qualified tax professional.

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