2019/2020 changes
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See Below for  2019 and 2020 rates and information -

Please contact us for additional information or to request an appointment.

wnw@wneill.com

Accounting Office, 1430 Church Lane, Easton, PA 18040

Effective for 2019

IRA Contribution max.  In 2019 limit is $6,000 and $7,000 with age catch-up.

  Standard Deductions & Personal Exemption - 2019 Year

Standard Deduction - MFJ - $24,400 (If one spouse is age 65 use $25,700; if both souses are 65, use $27,000); Single - $12,200 or $13,500 if 65 years of age; Head of Household (HoH) - $18,350 ($19,650).  

Personal Exemption - Eliminated after 2017.

     Taxable Income Amounts/rates for: Calendar year 2019

Married, filing jointly, taxable income - Rates

$0 - $19,400                 10%

$19,401 - $78,950         12%

$78,951 - $168,400        22% 

$168,401 - $321,450       24%

$321,451 - $408,200       32%

$408,201  - $612,350      35%  

$612,3511+                     37% Top rate was previously 39.6%

For taxable income under $78,950, Capital Gains tax rate is - 0 -%.

Single

$0 - $9,700                  10%

$9,701- $39,475             12%

$39,476 - $84,200           22% 

$84,201- $1160,725         24%

$160,726  - $204,100       32%

$204,101 - $510,300        35% 

$510,301+                      37% Previous to rate was 39.6%

For taxable income under $39,475, Capital Gains tax rate is - 0 -%

 

Head of Household

$0 - $13,850                   10%

$13,851 - $52,850             12%

$52,851 - $84,200             22% 

$84,201 - $160,700           24%

$160,701 - $204,100          32%

$204,001 - $510,300          35%

$510,301+                        37%  Previous top rate was 39.6%

Capital Gains tax rate is - 0 -% for taxable income under $52,850

A 20% Capital Gains tax rate applies to taxpayers with Adjusted Gross Income (AGI) over $200,000 (Singles) or $250,000 (Married).

Pennsylvania Individual Income Tax rate - 3.07%

Mileage deductions - - - for 2019

Business use          $.58 per mile

Charitable            $.14 per mile 

Medical/Moving     $.20 per mile

Social Security

Social Security Wage ceiling - $132,900 in 2019.  Early retirement income phase out begins at $17,640 in 2019. No ceiling for Medicare 1.45% tax; additional .9% surtax paid on wages that exceed $250,000 (MFJ) $125,000 (MFS) $200,000 (S)(HoH.

Self Employed - Health Insurance deduction

Remains 100% in 2019 and later

Minimum wage in Pennsylvania - employers with more than 10 full time employees

 $7.25 for 2019 in Pennsylvania; $8.85 in NJ for 2019

Federal min.  $7.25 for 2019

Corporate Income Tax Rates - 2019 new rate is 21%

Personal Services Corporations - 21%

Annual Gift tax exclusion is $15,000 for 2019.

Federal estate and gift tax exclusion is $11,400,000 for 2019.

Earned Income credit (EIC) - 2019 - Taxpayer cannot have Investment income in excess of $3,600, including net rental income. Maximum EIC is $6,4557

                                                Phaseout range

Children    Max credit     Begin Income         Ending income

- 0 -        $  529               $8,650                  $15,570

One          3,526              $19,030                $41,094

Two          5,828              $19,030                $46,703

Three        6,557              $19,030                $50,162

Above income levels are higher if Married, Filing Jointly.                                  

The Education credits and Child tax credits are renewed for 2019.

Alternative Minimum tax exemption amounts - 2019

Single        $71,700 

Married, Joint    $111,700

Itemized deduction Limitations - Repealed for years after 2017

Other notable 2019 changes:

Child tax credit remains $2,000 per child

Non Child tax credit remains $500

Medical expense deduction threshold - back to 10% of Adjusted Gross Income

State and Local tax deductions (SALT) limited to $10,000

Misc. expense itemized deductions subject to 2% threshold eliminated; can continue to deduct gambling losses.

 

 

The PA Inheritance tax rate is 4.5% for transfers from parents to children.  Gifts or transfers made within one year of death are taxed in addition to transfers effected after death.  A life estate which allows someone the right to remain in a home after transferring ownership has a value subject to the tax.