Key Tax Changes made in 2019

01
ACA Individual Mandate Repealed
Beginning in 2019, individuals who choose to go without health care coverage for the year will not have to pay tax penalties.
02
Foreign Earned Income Exclusion
The foreign earned income exclusion increased to $107,600
03
Alimony Deductions
Alimony is disregarded for tax purposes if divorce was finalized after December 2018. It is no longer a deduction.
04
Contributions to Retirement Accounts Increased
The 2020 contribution limits:
  • 401(k) base contribution: $19,500
  • 401(k) catch-up contribution (for taxpayers age 50 and older): additional $6,500
  • IRA base contribution: $6,000
  • IRA catch-up contribution (for taxpayers age 50 and older): additional $1,000
Higher HSA contribution:
  • Self-only coverage: $3,550
  • Family coverage: $7,100
05
Alternative Minimum
Exemption from the alternative minimum tax got an inflation boost
  • The Alternative Minimum Tax exemption amount for tax year 2020 is $72,900 and begins to phase out at $518,400 ($113,400 for married couples filing jointly for whom the exemption begins to phase out at $1,036,800)
06
Standard Deduction Increased
  • $200 for singles to $12,200
  • $400 for joint filers to $24,400
  • $300 for Head of Household to $18,650

2019 Income Tax Brackets

Tax brackets got wider, reflecting increases of about 2%.
2019 Individual Federal Income Tax Brackets
Tax Rate Single Married, filing jointly Married, filing separately Head of Household
10% $0 to $9,700 $0 to $19,400 $0 to $9,700 $0 to $13,800
12% $9,701 to $39,475 $19,401 to $78,950 $9,701 to $39,475 $13,851 to $52,850
22% $39,476 to $84,200 $78,951 to $168,400 $39,476 to $84,200 $52,851 to $84,200
24% $84,201 to $160,725 $168,401 to $321,450 $84,201 to $160,725 $84,201 to $160,700
32% $160,726 to $204,100 $321,451 to $408,200 $160,726 to $204,100 $160,701 to $204,100
35% $204,101 to $510,300 $408,201 to $612,350 $204,101 to $306,175 $204,101 to $510,300
37% $510,301 or more $612,351 or more $306,176 or more $510,301 or more