More New Tax Laws in 2019

With one year complete under the new tax laws, you have a better idea of how all the changes impact your situation. Now, 2019 brings its own set of changes to consider.

Alimony rules change for new divorĀ­cees. Beginning in 2019, alimony is no longer a tax deduction for those paying it, nor income for those receiving it. This rule change does not impact prior year divorce docuĀ­ments, but it does apply to previous agreements that are revised in 2019

Medical deduction threshold increases. The threshold to deduct medical expenses as an itemized deduction increases to 10 percent (up from 7.6 percent in 2018). This means that less of your medical expenses will be deductible in 2019.

Shared responsibility penalty is gone. The portion of the Affordable Care Act that requires you to have health insurance or pay a penalty is now suspended. You may still receive Form 1095 from your employer, but it’s not required to avoid additional taxes for 2019.

If any other late law changes impact you, rest assured those changes will be communicated during the tax-filing season.