Editors: Hanna Chau Nguyen, Cuong Nguyen
Are you ready to get your hands on your taxes for maximized refund or maybe minimized tax owe? Here are some adjustments of 2019 tax return that you should know about. For the most part, this year is going to be really familiar to the year of 2018.
Keep in mind that the first day the IRS processes 2019 tax return will be on January 27, 2020. The deadline to file your taxes will be on April 15, 2020 unless you want to make an extension for your file. For an extension, you will have until October 15, 2020 to file your tax.
The Tax Cuts and Jobs Act (TCJA) made some significant changes to the individual income tax return. These changes include a nearly double standard deduction, new limitations on itemized deductions, reduced income tax rates, and reforms several other provisions.
2019 Standard deductions
· Single taxpayers or Married Filing Separately: $12,200
· Married Filing Jointly: $24,400
· Head of Household: $18,350
Personal exemption
While the standard deduction has increased roughly doubled, the valuable personal exemption has gone away. The reason for that is instead of giving a taxpayer a standard deduction and a number of exemptions, the lawmakers combine these two things into a higher standard deduction.
The Child Tax Credit has doubled
Starting for 2018, the Child Tax Credit was doubled to $2,000 per qualified child under age 17. Also, the range of people who can benefit from the Child Tax Credit has been significantly expanded.
Few Schedule A Forms
If you choose to itemize instead of using the standard deduction, now you will have fewer forms to sift through. From having six schedule A forms, now there are only three, which are longer ones compared to last year.
Alimony
From this year, you cannot deduct money you paid as alimony anymore if your divorce at any time in 2019. However, if your divorce was finalized before December 31, 2018, the old rules still apply.
These are all the changes of this 2019 tax return we want you to know before you start filing your taxes. Since the standard deduction and the Child Tax Credit have been increased, you can take advantage of them for your tax return.
If you have any question about filing your tax or you need some professionals who can take care of your file, visit us through our website as cnproservices.com. We are happy to answer all of your questions regarding to your taxes.
References
· Frankel, Matthew. “2019 Tax Changes: Everything You Need to Know”. Retrieved from https://www.fool.com/taxes/2019-tax-changes-everything-you-need-to-know.aspx
· Rowan, Lisa. “Everything You Need to Know to File Your 2019 Taxes”. Retrieved from https://twocents.lifehacker.com/everything-you-need-to-know-to-file-your-2019-taxes-1840839478