Tax Filings – Minimal Changes this Year

Last year (the 2018 tax year) there were sweeping changes to the tax laws, rates, forms and schedules due to the “Tax Cuts and Jobs Act.” This year should feel a little more normal. There are a couple of changes previously announced that became effective for the 2019 filing year that we want to highlight, and then we’ll remind you of all the filing methods available to you to complete your taxes.

Changes effective for the 2019 tax year:

(1) There is no longer a penalty, or shared responsibility payment, if you don’t have health insurance.

(2) There is no longer a deduction for alimony paid, or a requirement to report it as income for divorce agreements in 2019 or later.

(3) The threshold for deducting out of pocket medical expenses dropped to 7.5% in 2017 and 2018. It was scheduled to go back up to 10% for 2019, but that change is being held back another year. So it will remain at 7.5% for 2019. 

One big change in 2018 was the increase to the standard deduction that most filers (estimated 90%) opt for (as opposed to itemizing deductions). For 2019, this amount is slightly higher due to an adjustment for inflation. If you do happen to itemize this year, there will be fewer schedules to complete with the intent of simplifying the filing. 

So, how should you file this year? You may have completed your own taxes in the past, but if you’ve had recent changes in your life (married, divorced, new baby, started a business, etc), you may want to consider some assistance this year. The filing options available are paper, e-filing/tax software, and engaging a professional. Not sure which method is right for you? Read the full details in our article here (originally published last year) including a couple of recommendations from the IRS about filing safety and getting a quicker refund.