Filing season quick guide: tax year 2019.

 
FREE EXCERPT

NET INVESTMENT INCOME TAX

3.8% of the lesser of (1) net investment income or (2) the amount of modified adjusted gross income (MAGI) over these thresholds:

* Single: $200,000.

* Married filing jointly and surviving spouses: $250,000.

* Married filing separately: $125,000.

* Heads of household: $200,000.

* Estates and trusts: $12,750.

SELF-EMPLOYMENT TAX

* Tax rate: 15.3% (12.4% OASDI tax plus 2.9% Medicare tax).

* Surtax: 0.9% Medicare surtax is applied to self-employment income in excess of $200,000 (single), $250,000 (married filing jointly), or $125,000 (married filing separately).

* Wage base: $132,900 of self-employment income for OASDI (maximum OASDI tax of $16,479.60; no ceiling on Medicare tax).

KIDDIE TAX

Earned income taxed at rates for single individuals; net unearned income taxed at trusts and estates rates. Net unearned income is the excess of the child's unearned income over the sum of (1) $ 1,100 plus (2) the greater of $1,100 or the child's itemized deductions directly connected to the production of the unearned income.

PERSONAL EXEMPTION

Personal exemptions are suspended from 2018 through 2025. A deemed personal exemption amount of $4,200 is used for purposes of determining who is a "qualifying relative" under Sec. 152(d)(1)(B).

STANDARD DEDUCTION

* Single: $12,200.

* Married filing jointly and surviving spouses: $24,400.

* Married filing separately: $12,200 ($0 if spouse itemizes deductions).

* Heads of household: $18,350. Additional standard deduction for 65+ and blind taxpayers:

* Single: $1,650.

* Married filing jointly and surviving spouses: $1,300.

* Heads of household: $1,650.

Standard deduction for individuals who can be claimed as dependents is the lesser of (1) $12,200 or (2) the greater of $1,100 or $350 plus the individual's earned income.

ITEMIZED DEDUCTIONS

The overall limitation on itemized deductions is suspended from 2018 through 2025. Miscellaneous itemized deductions subject to the 2%-of-adjusted-gross-income (AGI) floor are also suspended from 2018 through 2025.

TAX CREDITS

* Earned income: Maximum credit per number of qualifying children: $529 (none); $3,526 (one); $5,828 (two); $6,557 (three or more), subject to phaseouts.

* Child: $2,000 per qualifying child under age 17. Up to $1,400 is refundable to the extent of 15% of the taxpayer's earned income in excess of $2,500 or, for a taxpayer with three or more qualifying children, the excess (if any) of (1) the taxpayer's Social Security taxes for the...

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