The threshold for deducting medical expenses on Schedule A is 7.5% of AGI. The adjusted-gross-income threshold was slated to jump from 7.5% to 10% after 2018, but the year-end government funding law revived the 7.5% figure for 2019 and 2020.
The fine for filing late returns is higher for returns with post-2019 due dates. The minimum penalty for returns filed 60 or more days after the due date is the lesser of $435 (up from $215) of 100% of the required tax shown on the return.
Settlement proceeds received by a woman from a fertility clinic are nontaxable, IRS privately rules. The woman contracted with the clinic to provide her with a donor egg and embryo transfer through in vitro fertilization. She got pregnant, but discovered after delivering the baby that her child suffered from a genetic condition with physical and […]Northside Tax Service, Tallahassee Tax Service, TallyTaxMan
The tax reform law revamp of the kiddie tax has been repealed. Prior to 2018, children age 18 or younger (under 24 if a student) were taxed on unearned income in excess of a certain amount at their rate or their parents’ rate, whichever was higher. The tax reform law changed the rules to tax […]Northside Tax Service, Tallahassee Tax Service, TallyTaxMan
Many key dollar limits in retirement plans and IRAs are higher in 2020, thanks to prior-year inflation. The maximum 401(k) contribution is $19,500. Those born before 1971 can put in $6,500 more. The caps apply to 403(b) and 457 plans as well. The cap on SIMPLEs is $13,500 plus $3,000 extra for people age 50 […]IRA, Northside Tax Service, Tallahassee Tax Service, TallyTaxMan
The beginning age for taking required minimum distributions rises to 72 from 70 1/2. This easing applies to account owners who turn 70 1/2 after 2019. So if you turned 70 1/2 in 2019, you must still take your first RMD by April 1, 2020. Employees who work past age 72 can delay taking RMDs […]IRA, RMD, TallyTaxMan
We’ll now turn to key Obamacare tax changes that are in place for 2019. People who forgo health insurance in 2019 won’t have to pay a penalty. The new tax law repealed the fines under Obamacare’s individual mandate for post-2018 years. Note that this relief doesn’t apply for 2018 returns filed in 2019. The income […]