Posted by ABLE Tax Resolution

Everything You Need to Know About the New Income Tax Brackets for 2019

Everything You Need to Know About the New Income Tax Brackets for 2019


  • There have been some changes to the income tax brackets for the year. The IRS adjusted them for inflation.
  • The standard deduction for next year is going to be $12,000 for single while married couples filing jointly, $24,400. Personal exemptions still remain at zero.
  • Unlike this year’s penalty of $695 for failure to maintain minimum essential health coverage, it will be gone in 2019. 

The new Tax Cuts and Jobs Act starts this year, an overhaul of the tax code that led to a lower taxpayer income tax rates, a double standard deduction and the removal of personal exemptions. For the new year, the individual income tax brackets have been adjusted for inflation. Below is your new bracket:

Your 2019 Individual Income Tax Brackets

2019 Individual Income Tax Rates
Single-Taxable Income
Married Filing Jointly - Taxable Income
Head of Household - Taxable Income
10 percent
0 to $9,700
0 to $19,400
0 to $13,850
12 percent
$9,701 to $39,475
$19,401 to $78,950
$13,851 to $52,850
22 percent
$39,476 to $84,200
$78,951 to $168,400
$52,851 to $84,200
24 percent
$84,201 to $160,725
$168,401 to $321,450
$84,201 to $160,700
32 percent
$160,726 to $204,100
$321,451 to $408,200
$160,701 to $204,100
35 percent
$204,101 to $510,300
$408,201 to $612,350
$204,101 to $510,300

For 2019, the standard deduction has also increased into $12,200 for single filers (up from $12,000 in 2018). Married couples who file their tax return jointly will be eligible for a $24,400 standard deduction. As you can see, it increased from $24, 000 in 2018.

Heads of households or single parents’ taxpayers, on the other hand, can expect an increase of $350 to their standard deduction making it $18,350 this year.

Under the Tax Cuts and Jobs Act, personal exemptions where were removed from 2018 through 2025 will continue at zero.

Contributions on Retirement

If you’re saving money in a retirement plan, you will be able to save a little bit more in 2019. There has been a boost to the employee contribution limit for 401(k), 403(b) and most 457 plans to $19,000 according to the IRS. Remember it was only $18,500 before. If you’re saving money at age 50 or more, you’ll be able to save up an additional $6,000.

You can put away $6,000 in annual contributions in 2019 if you have an IRA. That’s higher from the previous $5,500. Catch-up contributions for savers age 50 and older will stay at $1,000.

Penalties On Insurance

Taxpayers should not fail to remember that in 2019, the IRS will do away with the individual mandate. It’s the penalty that people pay for not being able to maintain qualifying health insurance coverage.

If taken on a per-person basis, this fine can add up to $695 per adult and $347 per child under the age 18.

It’s important to be aware of the fact that going without coverage in 2018 will subject you to the fine when you file your taxes in April 2019.

The following information forms will be required for you to complete your tax return in 2018 and report your coverage status to the IRS:

  • Form 1095-A (for coverage purchased in the marketplace)
  • Form 1095-B (sent from insurers to covered individuals)
  • Form 1095-C (for health insurance offered at work).

What About Taxes and Estates

Another change made by the Tax Cuts and Jobs Act is doubling the amount that decedents could bestow when they die – or gift over their lifetime – and is safe from federal estate and gift taxes, which is a whopping 40 percent.

The so-called gift and estate tax exemption were $5.49 million per person before the TCJA. 

For 2019, the lifetime gift and estate tax exemption will be $11.4 million per taxpayer, up from $11.18 million in 2018.

The annual gift exclusion, on the other hand, will remain at $15,000 per recipient for 2019. The annual gift exclusion is the amount that you can give to someone else without it affecting your lifetime exemption.

If you need help with calculating your taxes using your tax bracket, it may be best to consult a trusted and experienced tax professional who can do the job for you. This way you don’t have to worry about making any mistakes in your tax return or pay heavy penalties.

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