TAX AUDIT REVIEWS FEDERAL INCOME TAX GUIDELINES FOR 2019 RETURNS

It may come as a surprise for many people to learn that the IRS is still working out many of the details for the 2020 tax season, though it’s still a good idea to get all your ducks in a row for filing your 2019 return as early as possible. Tax audit reviews the new changes that will affect your 2019 tax return. Tax audit reviews federal and state returns for individuals and businesses, helping taxpayers navigate IRS audits successfully and affordably.

The Tax Cuts and Jobs Act of 2017 changed several aspects of the tax code, so your 2019 return might look significantly different than it has in previous years. Here are a few of the changes you should expect.

THE ALLOWANCES FOR MILEAGE HAVE GONE UP

Notice 2019-02 gives the standard mileage rates, which as of January 1, 2019, have increased. The new mileage rates are:

• $0.58 per business mile (miles driven to and from a location in the service of a business)
• $0.14 per charitable mile (miles driven to and from a location in the service of a charitable organization)
• $.020 per mile driven for medical purposes or for moving purposes

END OF THE FEDERAL AFFORDABLE CARE ACT PENALTY

The 2019 tax year brings the end of the penalty for failing to have health insurance coverage.

MEDICAL DEDUCTION THRESHOLD INCREASED FOR 2020

The Tax Cuts and Jobs Act of 2017 increased the threshold of unreimbursed medical expenses. Expenses that surpass 7.5 percent of taxpayers’ adjusted gross income will be deductible for tax year 2019 and 10% for 2020.

ALIMONY PAYMENTS NO LONGER DEDUCTIBLE

Taxpayers who made their first alimony payments in 2019 will not be able to deduct their payments. Moreover, recipients of alimony will no longer have to claim alimony payments received as income.