With 2019 coming to a close, it will soon be time to start preparing to file your 2019 tax return — the one that’s due by April 2020. That return will differ from the last one you filed in several ways, though. Many key aspects of federal income taxes — from standard deductions to retirement account contribution limits — can change every year due to inflation. Additionally, some aspects of the 2017 federal tax reform law didn’t take effect until 2019. So, following is a look at some of the ways in which your 2019 tax return will differ from your prior return.
1. No individual mandate penalty
Most of the tax code changes stemming from the Tax Cuts and Jobs Act of 2017 took effect in 2018. One exception is the change to the shared responsibility payment, which took effect in 2019. The shared responsibility payment — commonly referred to as the individual mandate penalty — had applied to folks who were required to have health insurance under the Affordable Care Act but who didn’t get coverage and didn’t qualify for an exemption. Click to read more at www.moneytalknews.com.