Get Ready to File Your 2019 Tax Return: The updated numbers affecting your 2019 tax return
Due to the annual inflation adjustments, the IRS has updated the numbers affecting your 2019 tax return, including tax brackets and tax rates and standard deduction amounts. These are the numbers you will use in 2020 to file your 2019 tax return. If you do not have drastic changes affecting your 2019 tax return (for example, gotten married or divorced, had a baby, had a child turn age 17 in 2019, no longer qualify for the Child Tax Credit or one of the college credits/deductions, or started a business), you can use these numbers to estimate your 2019 tax liability. Be prepared and get ready to file your 2019 tax return!
Standard Deduction Amounts for 2019 Tax Year
For the 2019 tax year, the standard deduction amounts have increased to the following based on your filing status:
| Single | $12,200 |
| Married Filing Jointly | $24,400 |
| Head of Household | $18,350 |
| Married Filing Separately | $12,200 |
Since the standard deduction amounts were drastically increased in 2018, millions of taxpayers no longer need to itemize their deductions to get their best deduction. For many taxpayers, it is the reverse, This means no longer having to track all of your expenses or digging out the shoebox filled with receipts come tax time.
If taking the itemized deduction does not net you a greater deduction than your allowable standard deduction (listed above), it more than likely is in your best interest to take the greatest deduction, that is, the standard deduction. There are some situations, for example, where spouses file separately, that if one spouse takes the itemized deduction, the other spouse is required to take the itemized deduction as well. This applies, even if, the spouse required to take the itemized deduction would qualify for a higher deduction if they were to take the standard deduction.
Tax Brackets and Rates for 2019 Tax Year
There are still seven (7) tax rates as outlined below that apply to the 2019 tax year: 10%, 12%, 22%, 24%, 32%, 35%, and 37%.
If Taxable Income is Between the Limits Below and Filing Status is Single, Your Tax Rate is:
| $0 - $9,700 | Single | 10% of taxable income |
| $9,701 - $39,475 | Single | $970 + 12% of taxable income over $9,700 |
| $39,476 - $84,200 | Single | $4,543 + 22% of taxable income over $39,475 |
| $84,201 - $160,725 | Single | $14,383 + 24% of taxable income over $84,200 |
| $160,726 - $204,100 | Single | $32,749 + 32% of taxable income over $160,725 |
| $204,101 - $510,300 | Single | $46,629 + 35% of taxable income over $204,100 |
| Over $510,301 | Single | $153,799 + 37% of taxable income over $510,300 |
If Taxable Income is Between the Limits Below and Filing Status is Married Filing Jointly and Surviving Spouses, Your Tax Rate is:
| $0 - $19,400 | Married Filing Jointly and Surviving Spouses | 10% of taxable income |
| $19, 401 - $78,950 | Married Filing Jointly and Surviving Spouses | $1,940 + 12% of taxable income over $19,400 |
| $78,951 - $168,400 | Married Filing Jointly and Surviving Spouses | $9,086 + 22% of taxable income over $78,950 |
| $168,401 - $321,450 | Married Filing Jointly and Surviving Spouses | $28,765 + 24% of taxable income over $168,400 |
| $321,451 - $408,200 | Married Filing Jointly and Surviving Spouses | $65,497 + 32% of taxable income over $321,450 |
| $408,201 - $612,350 | Married Filing Jointly and Surviving Spouses | $93,257 + 35% of taxable income over $408,200 |
| Over $612,351 | Married Filing Jointly and Surviving Spouses | 37% of taxable income over $612,350 |
If Taxable Income is Between the Limits Below and Filing Status is Head of Household, Your Tax Rate is:
| $0 - $13,850 | Head of Household | 10% of taxable income |
| $13,851 - $52,850 | Head of Household | $1,385 + 12% of taxable income over $13,850 |
| $52,851 - $84,200 | Head of Household | $6,065 + 22% of taxable income over $52,850 |
| $84,201 - $160,700 | Head of Household | $12,962 + 24% of taxable income over $84,200 |
| $160,701 - $204,100 | Head of Household | $31,322 + 32% of taxable income over $160,700 |
| $204,101 - $510,300 | Head of Household | $45,210 + 35% of taxable income over $204,100 |
| Over $510,301 | Head of Household | $152,380 + 37% of taxable income over $510,300 |
If Taxable Income is Between the Limits Below and Filing Status is Married Filing Separately, Your Tax Rate is:
| $0 - $9,700 | Married Filing Separately | 10% of taxable income |
| $9,701 - $39,475 | Married Filing Separately | $970 + 12% of taxable income over $9,700 |
| $39,476 - $84,200 | Married Filing Separately | $4,543 + 22% of taxable income over $39,475 |
| $84,201 - $160,725 | Married Filing Separately | $14,383 + 24% of taxable income over $84,200 |
| $160,726 - $204,100 | Married Filing Separately | $32,749 + 32% of taxable income over $160,725 |
| $204,101 - $306,175 | Married Filing Separately | $46,629 + 35% of taxable income over $204,100 |
| Over $306,176 | Married Filing Separately | $82,355 + 37% of taxable income over $306,175 |
If you experienced changes in 2019 tax year that affected your tax liability, for example, made drastically less or more money, you can use the IRS withholding calculator here and file an updated W-4 form with your employer to change your withholding. This will make sure you are having the correct amount of taxes, not too much, not too little, withheld from your paycheck. There is only one month left in 2019, so this will not help a lot with taxes for this year, if you have not completed it earlier in the year. However, you should not delay because it will help you make sure you are having the correct amount withheld going forward.
The Bottom Line
Every person’s tax situation is different. And, the tax laws are confusing. Schedule an appointment today with the accounting and tax preparation professionals at Gudorf Tax Group. They will ensure you have a good grasp of how these new numbers affect your 2019 tax return.
