The Internal Revenue Service (IRS) has announced the annual inflation adjustments for more than 60 tax provisions for 2019, including tax rate schedules, tax tables and cost-of-living adjustments. These are the numbers for the tax year 2019 beginning January 1, 2019 that you’ll use to prepare your 2019 tax returns in 2020. They are not the numbers and tables that you’ll use to prepare your 2018 tax returns in 2019.
If you aren’t expecting any significant changes in 2019, you can use the updated numbers to estimate your liability. If you plan to make more money or change your circumstances (i.e., get married, start a business, have a baby), consider adjusting your withholding or tweaking your estimated tax payments.
Tax Brackets and Tax Rates.
The IRS has announced the tax rates and income brackets for 2019, and besides slight adjustments in the income ranges for inflation, they look the same as this past year’s.. There are still seven (7) tax rates. They are: 10%, 12%, 22%, 24%, 32%, 35% and 37% (there is also a zero rate). Here’s how those break out by filing status:
Tax rates for trusts and estates have changed, too:
Standard Deduction Amounts.
The standard deduction amounts will increase to $12,200 for individuals, $18,350 for heads of household, and $24,400 for married couples filing jointly and surviving spouses.
For 2019, the additional standard deduction amount for the aged or the blind is $1,300. The additional standard deduction amount increases to $1,650 for unmarried taxpayers.
For 2019, the standard deduction amount for an individual who may be claimed as a dependent by another taxpayer cannot exceed the greater of $1,100 or the sum of $350 and the individual’s earned income.
There will be no personal exemption amount for 2019. The personal exemption amount was set to zero (0) under the Tax Cuts and Jobs Act.
The alternative minimum tax (AMT) exemption amounts are adjusted for inflation. Here’s what those numbers look like for 2019: