Tax law has gone through a number of changes since the Trump administration and will continue to change going into 2020. It can be overwhelming to keep track of all the changes, but we’ve compiled a shortlist of the changes you need to be on the lookout for.
- No alimony deduction – People who pay alimony in 2019 cannot write payments off in tax returns, and people receiving alimony will not count the payments as income.
- Increase in retirement account contributions – 401(k) and IRA base contributions will go up to $19,000, a $500 increase. Catch -up contributions will also increase.
- Health savings account – Self only coverage will increase to $3,500, a $50 increase, and family coverage will increase from $100 to $7,000.
- Income brackets – Income brackets will see a small shift. See the IRS Revenue Procedure for the complete list of the tax brackets.
- Individual mandate – The individual mandate was a penalty for those required to get health insurance under the ACA but did not sign up for coverage.
Tax Law Expertise
If you’re unsure how your taxes will change in 2020, call Clifford Ross Raudenbush Cooper. We can help with any aspect of your tax process and can advise your financial decisions moving forward.