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News: 2020 Tax Refund: Tax Reform and Changes - Credit-Land.com

The IRS released the final version of its new Form W-4. The new form reflects changes from the Tax Cuts and Jobs act.

Passed in 2017, the Tax Cuts and Jobs Act brought massive changes to how people had to file their tax returns starting 2018. The considerable part of changes has already been rolled out. However, there still are some tweaks and changes left that will impact 2019 taxes, which should be filed be April 2020.

Changes to watch out for when filing 2019 taxes:

  • No Alimony Deductions: Alimony payments will not be deductible for the payer or counted as a taxable income to the recipient if the divorce and separation agreement were finalized after 2018. Those who got divorced before the end of 2018 can generally use the old rules.
  • No Individual Mandate Penalty: With the end of 2018, the penalty for not having individual health insurance has ended as well. However, some states have their own requirements for holding individual health insurance, so check if your state charges its own penalty for not having sufficient insurance.
  • A new tax form for seniors: The IRS designed the new 1040-SR tax form for those 65 or older.
  • Bigger contribution limits: Contribution amounts for several types of retirement accounts were increased allowing people to boost the amount of tax deductible contributions.
  • Inflation related changes: Certain tax figures, cutoffs and thresholds are impacted by inflation and therefore, they will increase each year.
tags : Finance

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