#13: 2019 Tax Season is upon us. What you need to know.

On today’s episode, I will be introducing the new changes that come with the “Tax Cuts and Jobs Act of 2017. And what you should expect.President Trump signed the Tax Cuts and Jobs Act on December 22nd, 2017. It cuts individual income tax rates, doubles the standard deduction, and eliminates personal exemptions. The top individual tax rate drops to 37 percent from 39.6%, while the lowest individual rate remains at 10%. The Act cuts the corporate tax rate from 35 percent to 21 percent beginning in 2018. The corporate cuts are permanent, while the individual changes expire at the end of 2025.As a result of the new law, The Internal Revenue Service (IRS) has announced the annual inflation adjustments for more than 60 tax provisions for the year 2019, including tax rate schedules, tax tables, and cost-of-living adjustments.   Here are some changes you need to note:1. Tax Brackets and Tax Rates. There are still seven (7) tax rates. They are: 10%, 12%, 22%, 24%, 32%, 35% and 37%2. Standard Deduction Amounts. The standard deduction amounts will increase to $12,200 for individuals, $18,350 for heads of household, and $24,400 for married couples filing jointly and surviving spouses.3. Home Mortgage Interest. You will be able to deduct mortgage loan interest on your home - up to $750,000 ($375,000 for married taxpayers filing separately). 4. Child Tax Credit. The child tax credit has been increased to $2,000 per qualifying child from the current $1000.5. Adoption Credit. For 2019, the credit allowed for an adoption of a child with special needs is $14,080, and the maximum credit allowed for other adoptions is the amount of qualified adoption expenses up to $13,810.6. Student Loan Interest Deduction. For 2019, the maximum amount that you can deduct for interest paid on student loans remains $2,500. Phaseouts apply for taxpayers with Modified Adjusted Gross Income (MAGI) more than $70,000 ($140,000 for joint returns), and the deduction is completely phased out for taxpayers with MAGI of $85,000 or more ($170,000 or more for joint returns).7. Health Savings Accounts (HSA). For 2019, HSA Contribution LimitsThese are the maximum contributions to a health savings account for 2018:• $3,450 for individuals (up from $3,000 in 2017).• $6,850 for families (up from $6,800 in 2017).• If you're 55 or older, you can make an additional catch-up contribution of up to $1,000. 8. Foreign Earned Income Exclusion. For tax year 2019, the foreign earned income exclusion is $105,900, up from $103,900 for tax year 2018. --- Send in a voice message: https://podcasters.spotify.com/pod/show/thecareerevangelist/message