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2019 Taxes Quick Guide

Taxes 2019 QuikGuide will help you keep track of tax filing deadlines, recordkeeping requirements, and those tax numbers you need for your 2019 tax planning.

We hope you find this handy guide useful. If you have questions, or if we can assist you with any of your tax concerns, please contact us.

 

What’s New in 2019

Here’s a quick review of some of the tax changes you’ll see from 2018 to 2019 as a result of inflation adjustments and tax law changes. For details or a discussion of these and other changes that could affect your situation, give us a call.

Provision

2019

2018

Business equipment Sec. 179 expensing deduction
$1,020,000
$1,000,000
Total purchase limit for full Sec. 179 expensing deduction
$2,550,000
$2,500,000
Standard mileage rate for business driving
58¢ per mile
54.5¢ per mile
Mileage rate for medical and moving expense deductions
20¢ per mile
18¢ per mile
Mileage rate for charitable activity driving
14¢ per mile
14¢ per mile
Maximum wages subject to social security tax
$132,900
$128,400
Social security earnings limit
– Under full retirement age
$17,640
$17,040
– Full retirement age
No limit
No limit
Top estate tax rate
40%
40%
Amount exempt from estate tax
$11,400,000
$11,180,000
Annual gift tax exclusion (per donee)
$15,000
$15,000
Alternative minimum tax exemption
– Single
$71,700
$70,300
– Married, joint
$111,700
$109,400
– Married, separate
$55,850
$54,700
Maximum retirement plan contributions
– IRA for those under age 50
$6,000
$5,500
– IRA for those 50 and over
$7,000
$6,500
– SIMPLE plan for those under age 50
$13,000
$12,500
– SIMPLE plan for those 50 and over
$16,000
$15,500
– 401(k) plan for those under age 50
$19,000
$18,500
– 401(k) plan for those 50 and over
$25,000
$24,500
HSA contribution limit
– Self only
$3,500
$3,400
– Family
$7,000
$6,750
– Additional for 55 & older
$1,000
$1,000
“Kiddie tax” threshold
$2,200
$2,100
“Nanny tax” threshold
$2,100
$2,100
Education savings account contribution (Coverdell)
$2,000
$2,000
American opportunity (Hope) credit limit
$2,500
$2,500
Education loan interest deduction
$2,500
$2,500
Personal exemption
Suspended through 2025
Suspended through 2025
FICA & self-employment tax
Taxable wages for Social Security/Medicare
Up to $132,900
Up to $128,400
Social Security/Medicare tax rate
Employees
7.65%
7.65%
Employers
7.65%
7.65%
Self-employed
15.3%
15.3%
Standard deduction
– Single
$12,200
$12,000
– Joint returns & surviving spouses
$24,400
$24,000
– Married filing separately
$12,200
$12,000
– Head of household
$18,350
$18,000
– Additional for elderly or blind (married)
$1,300
$1,300
– Additional for elderly or blind (single)
$1,650
$1,600

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2019 Filing Deadlines

Call our office for more information or for assistance with any required tax filings.

Deadline

Filing Required

January 15, 2019 Due date for the fourth installment of 2018 individual estimated tax.
January 31 Due date for employers to furnish W-2 statements to employees, and also file Forms W-2 with the Social Security Administration (both paper and electronic forms).
January 31 Due date for payers to provide most Forms 1099-MISC with non-employee compensation in box 7 to recipients and to the IRS.
January 31 Employers must file 2018 federal unemployment tax returns and pay any tax due.
February 28 Payers must file most other Forms 1099 (except certain Forms 1099-MISC due Jan. 31) with the IRS.*
February 28 Due date for providers to file Forms 1095 with the IRS.*
March 4 Due date for providers to send Forms 1095 to recipients.
March 15 2018 calendar-year S corporation income tax returns are due.
March 15 2018 partnership returns are due.
March 15 Deadline for calendar-year corporations to elect S corporation status for 2019.
April 15 Farmers and fishermen who did not make 2018 estimated tax payments must file 2018 tax returns and pay taxes in full. (Extension)
April 15 Individual income tax returns for 2018 are due.
April 15 2018 annual gift tax returns are due.
April 15 2018 calendar-year C corporation income tax returns are due.
April 15 Deadline for making 2018 IRA contributions.
April 15 Due date for 2018 FinCEN Report 114 (FBAR).
April 15 First installment of 2019 individual estimated tax is due.
June 17 Second installment of 2019 individual estimated tax is due.
September 16 Third installment of 2019 individual estimated tax is due.
September 16 Deadline for filing 2018 calendar-year corporation tax returns with extensions of the initial filing deadline.
September 16 Deadline for filing 2018 partnership returns with extensions of the initial filing deadline.
October 15 Deadline for filing 2018 individual tax returns on extension from the April deadline.
October 15 Deadline for filing 2018 FinCEN Report 114 (FBAR) on extension from the April deadline.
January 15 2020 Fourth installment of 2019 individual estimated tax is due.

*April 1 if filing electronically.


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2019 Individual Tax Rates — Taxable Income

Tax Rate

Single

10% $             1 – 9,700
12% 9,701 – 39,475
22% 39,476 – 84,200
24% 84,201 – 160,725
32% 160,726 – 204,100
35% 204,101 – 510,300
37% Over 510,300

 

Tax Rate

Married Joint

10% $           1 – 19,400
12% 19,401 – 78,950
22% 78,951 – 168,400
24% 168,401 – 321,450
32% 321,451 – 408,200
35% 408,201 – 612,350
37% Over 612,350

 

Tax Rate

Married Separate

10% $            1 – 9,700
12% 9,701 – 39,475
22% 39,476 – 84,200
24% 84,201 – 160,725
32% 160,726 – 204,100
35% 204,101 – 306,175
37% Over 306,175

 

Tax Rate

Head of Household

10% $          1 – 13,850
12% 13,851 – 52,850
22% 52,851 – 84,200
24% 84,201 – 160,700
32% 160,701 – 204,100
35% 204,101 – 510,300
37% Over 510,300


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2019 Deductions and Exceptions

Standard Deduction1

Deduction

Single $12,200
Joint returns & surviving spouses $24,400
Married filing separately $12,200
Head of household $18,350

Personal Exemption2

Suspended through 2025

1 The standard deduction is increased by $1,300 for a married taxpayer aged 65 or older or blind ($2,600 if both 65 and blind); by $1,650 for a single taxpayer aged 65 or older or blind ($3,300 if both 65 and blind).

2 No personal exemption is allowed to an individual who is eligible to be claimed as a dependent on another taxpayer’s return.


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Estates and Nongrantor Trusts Tax Rates

Tax Rate

Taxable Income

10% 0 – 2,600
24% 2,601 – 9,300
35% 9,301 – 12,750
37% Over 12,750


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2019 Corporate Tax Rates

C Corporations

Pass-through entities
(S corps, partnerships and sole proprietors)

Flat 21% corporate tax rate. Includes personal service corporations. Taxed as ordinary income.
No alternative minimum tax (AMT).

20% qualified business income deduction.

Qualified business income threshold: $160,700 ($321,400 joint)

Select service companies above these limits have the income deduction reduced.

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2019 FICA Tax Rates

FICA tax is a combination of a social security tax and a Medicare tax. The Social Security tax is assessed on wages up to $132,900; the Medicare tax is assessed on all wages.

Self-employed individuals pay a self-employment tax which is the equivalent of FICA tax. For 2019, they will pay a 15.3% OASDI tax (the old age, survivors, and disability insurance tax) on the first $132,900 of self-employment income. A 2.9%* Medicare tax is imposed on all net self-employment income.

The earnings limit for retirees under full retirement age is $17,640. Social security benefits will be reduced $1 for every $2 of earnings above this limit. There is no earnings limit for individuals at full retirement age. (Special rules apply in the first year of retirement.)

Tax

Maximum Tax Rate

Maximum Wage Base

Maximum Tax

Social Security
6.20%
$132,900
$8,239.80
Medicare
1.45%*
No limit
No ceiling

* A 0.9% Medicare surtax is assessed on all wages or self-employment income in excess of $200,000 for singles, $250,000 for joint returns, and $125,000 for marrieds filing separately.

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2019 IRS Interest Rates

IRS Interest Rates — First Quarter 2019
(January 1 through March 31)

Amount

Paid on overpayments by individuals
6%
Charged on underpayments by individuals
6%
Paid on overpayments by corporations
5%
Paid on corporate overpayments exceeding $10,000
3.5%
Charged on underpayments by corporations
6%
Charged on large corporate underpayments
8%

IRS Interest Rates — Second Quarter 2019
(April 1 through June 30)

Amount

Paid on overpayments by individuals
6%
Charged on underpayments by individuals
6%
Paid on overpayments by corporations
5%
Paid on corporate overpayments exceeding $10,000
3.5%
Charged on underpayments by corporations
6%
Charged on large corporate underpayments
8%

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2019 Tax Benefit Income* Phaseout Levels

 

American Opportunity (HOPE) Tax Credit

Phaseout Level

Single / Head of household $80,000 – 90,000
Joint $160,000 – 180,000
Married filing separately $0

Child Tax Credit ($2,000 Per Child)

Phaseout Level

Single / Head of household 200,000 – 240,000
Joint 400,000 – 440,000
Married filing separately 200,000 – 240,000
Family Tax Credit
$500/dependent for those not qualified for CTC

College Savings Bond Interest Exclusion

Phaseout Level

Single / Head of household $81,100 – 96,100
Joint $121,600 – 151,600
Married filing separately $ 0

*Adjusted or modified adjusted gross income.

Education Loan Interest Deduction

Phaseout Level

Single / Head of household $70,000 – 85,000
Joint $140,000 – 170,000
Married filing separately $ 0

Education Savings Accounts

Phaseout Level

Single / Head of household / Married filing separately $95,000 – 110,000
Joint $190,000 – 220,000

Lifetime Learning Credit

Phaseout Level

Single / Head of household $58,000 – 68,000
Joint $116,000 – 136,000
Married filing separately $ 0

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IRA Deductibility (With Company Pension)

Phaseout Level

Single / Head of household $64,000 – 74,000
Joint $103,000 – 123,000
Married filing separately $0 – 10,000
When spouse has company pension $193,000 – 203,000

Itemized Deductions

Phaseout Level

Single Not applicable
Joint returns & surviving spouses Not applicable
Married filing separately Not applicable
Head of household Not applicable

Personal Exemption

Phaseout Level

Single Not applicable
Joint returns & surviving spouses Not applicable
Married filing separately Not applicable
Head of household Not applicable

Roth IRA Eligibility

Phaseout Level

Single / Head of household $122,000 – 137,000
Joint $193,000 – 203,000
Married filing separately $0 – 10,000
Rollover of regular IRA to Roth IRA No income limit

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2019 Tax Benefit Income* Phaseout Levels

 

American Opportunity (HOPE) Tax Credit

Phaseout Level

Single / Head of household $80,000 – 90,000
Joint $160,000 – 180,000
Married filing separately $0

Child Tax Credit ($2,000 Per Child)

Phaseout Level

Single / Head of household 200,000 – 240,000
Joint 400,000 – 440,000
Married filing separately 200,000 – 240,000
Family Tax Credit
$500/dependent for those not qualified for CTC

College Savings Bond Interest Exclusion

Phaseout Level

Single / Head of household $81,100 – 96,100
Joint $121,600 – 151,600
Married filing separately $ 0

*Adjusted or modified adjusted gross income.

Education Loan Interest Deduction

Phaseout Level

Single / Head of household $70,000 – 85,000
Joint $140,000 – 170,000
Married filing separately $ 0

Education Savings Accounts

Phaseout Level

Single / Head of household / Married filing separately $95,000 – 110,000
Joint $190,000 – 220,000

Lifetime Learning Credit

Phaseout Level

Single / Head of household $58,000 – 68,000
Joint $116,000 – 136,000
Married filing separately $ 0

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IRA Deductibility (With Company Pension)

Phaseout Level

Single / Head of household $64,000 – 74,000
Joint $103,000 – 123,000
Married filing separately $0 – 10,000
When spouse has company pension $193,000 – 203,000

Itemized Deductions

Phaseout Level

Single Not applicable
Joint returns & surviving spouses Not applicable
Married filing separately Not applicable
Head of household Not applicable

Personal Exemption

Phaseout Level

Single Not applicable
Joint returns & surviving spouses Not applicable
Married filing separately Not applicable
Head of household Not applicable

Roth IRA Eligibility

Phaseout Level

Single / Head of household $122,000 – 137,000
Joint $193,000 – 203,000
Married filing separately $0 – 10,000
Rollover of regular IRA to Roth IRA No income limit

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Record Retention Guide for Businesses

In business, good record keeping is essential not only for tax reporting purposes but also for the success of the company. The guidelines below give retention periods for the most common business records. Call us if you’d like more information or assistance with your record retention program.

Accounting Records

Retention Period

Accounts payable 7 years
Accounts receivable 7 years
Audit reports Permanent
Chart of accounts Permanent
Depreciation schedules Life of assets plus 7 years
Expense records 7 years
Financial statements (annual) Permanent
Fixed asset purchases Permanent
General ledger Life of business plus 7 years
Inventory records 7 years
(Permanent for LIFO system)
Loan payment schedules 7 years
Purchase orders (1 copy) 7 years
Sales records 7 years
Tax returns Permanent

 

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Bank Records

Retention Period

Bank reconciliations 2 years
Bank statements 7 years
Cancelled or substitute checks 7 years
(Permanent for real estate purchases)
Electronic payment records 7 years

 

 

Corporate Records

Retention Period

Board minutes Life of company plus 7 years
Business licenses Permanent
Bylaws Permanent
Contracts – major Permanent
Contracts – minor Life + 4 years
Insurance policies Life + 3 years
(Check with your agent. Liability for prior years can vary.)
Leases/mortgages Permanent
Patents/trademarks Permanent
Shareholder records Permanent
Stock registers Permanent
Stock transactions Permanent

Employee Records

Retention Period

Benefit plans Permanent
Employee files (ex-employees) 7 years
(Or statute of limitations for employee lawsuits)
Employment applications 3 years
Employment taxes 7 years
Payroll records 7 years
Pension/profit sharing plans Permanent

 

 

Real Property Records

Retention Period

Construction records Permanent
Leasehold improvements Permanent
Lease payment records Life + 4 years
Real estate purchases Ownership period plus 7 years

 

 

2019 Record Retention Guide for Individuals

Good recordkeeping can cut your taxes and make your financial life easier.

How long to keep records is a combination of judgment and state and federal statutes of limitations. Since federal tax returns can generally be audited for up to three years after filing and up to six years if the IRS suspects underreported income, it’s wise to keep tax records at least seven years after a return is filed. Requirements for records kept electronically are the same as for paper records.

Generally, follow these recommended retention periods for various documents:

Record

Retention Period

Tax returns (uncomplicated) 7 years
Tax returns (all others) Permanent
W-2s 7 years
1099s 7 years
Cancelled or substitute checks
supporting tax deductions
7 years
Bank deposit slips 7 years
Bank statements 7 years
Charitable contribution documentation 7 years
Credit card statements 7 years
Receipts, diaries, logs pertaining to tax returns 7 years
Investment purchase and sales slips Ownership period + 7 years
Dividend reinvestment records Ownership period + 7 years
Year-end brokerage statements Ownership period + 7 years
Mutual fund annual statements Ownership period + 7 years
Investment property purchase documents Ownership period + 7 years
Home purchase documents Ownership period + 7 years
Home improvement receipts and cancelled checks Ownership period + 7 years
Home repair receipts and cancelled checks Warranty period for item
Retirement plan annual reports Permanent
IRA annual reports Permanent
IRA nondeductible contributions (Form 8606) Permanent
Insurance policies Life of policy + 3 years
(Check with your agent. Liability for prior years can vary.)
Divorce documents Permanent
Loans Term of loan + 7 years
Estate planning documents Permanent


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